Summary of Obligations for Partnerships
Liable to pay Green Fund Levy at the rate of 0.3% on gross sales or receipts
Required to file yearly Income Tax Return for partnership
Value Added Tax (VAT) registration if income exceeds $500,000 in any successive twelve (12) months.
- Partnerships are not subject to Income/Corporation Tax, but are subject to VAT, Green Fund Levy.
Summary of Obligations for Owners and Individual Partners
Each is required to file yearly Income Tax Return for individuals (Non-Emolument)
Liable to pay Business Levy at the rate of 0.6% on gross sales or receipts if income is above $250,000 after three years of commencement of trading (usually interpreted as commencing from the date of registration) and subsequently thereafter.
Liable to pay Income Tax at the rate of 25% on the profits after deducting business expenses and personal allowances (where applicable). Chargeable profits over $1,000,000 are taxed at the rate of 30%.
Liable to pay Health Surcharge at the rate of $8.25 per week / $429 yearly
- PAYE – 15th every month (once business has employees)
- NIS – 15th every month (once business has employees)
- Health Surcharge – 15th every month (once business has employees)
- Income Tax – 30th April (with the filing of the tax return)
- Business Levy – last day of each quarter (Mar, June, Sep, Dec)
- VAT – 25th day of the month following the VAT period.
Filing your Income Tax return is done usually on April 30th (or the date specified by the Board of Inland Revenue). Late filings incur a penalty from 1st November and every six months thereafter of $100.
If you registered and operated a business for any part of 2020, then filing is mandatory. (even if no transactions occurred and no money made)
Penalties and Interest:
- Late payments on Income Tax incur interest at the rate of 20% per annum from due date
- Late payment of VAT results in a Penalty of 8% and interest of 2% per month.
- PAYE – 25% and interest of 20% per annum (on both principal and penalty)
- NIS – Late payment of 25% and interest of 15% per annum (on both contribution and penalty)