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 

 

Payment Dates:

  • PAYE15th 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 Date:

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)