Information

Return of Remuneration and Tax Deducted - TD5

The Return of Remuneration or TD5 Form as it is called is the set of forms that accompany the TD6 Form (the Annual Remittance form) and which are to be submitted to the Inland Revenue Department on or before January 31.

On the TD5 Forms employers are to list alphabetically the FULL names of ALL Persons employed with the organization for the period under review as well as to ensure that all copies are completed LEGIBLY.

ANY employee who left the organization during the period under review should not be included on this form. However a separate Form a TD4 should have been submitted to the Inland Revenue Department for that employee. A copy of the TD4 Form should be given to the employee on their last day of work with the organization.

Extra Copies of the TD5 and TD4 Forms can be obtained from the Inland Revenue Department in Castries, Vieux fort or Soufriere.

The TD5 form is in quadruplet form. The first two copies are to be delivered to the Employee, the Third copy (the pink sheet) is to be delivered to the Inland Revenue not later than January 31. The fourth copy, the yellow sheet is to be retained by you the Employer.

The Forms must bear the official stamp of the organization.

Particular attention should be paid to the preparation of the Form for each employee:

Section A

Having entered the employees’ last name and first name, you are to enter the employer’s Tax Account Number.

In this section you are required to enter the employee’s Tax Account Number. This number is very important in assisting with the correct identification of the employee. If you do not have your employees Tax Account Number feel free to contact our Customer Service Unit for that information.

Section B

In the right hand column of the form you are to enter the year in question. For the purpose of this exercise we will use 2006.

Please enter the Tax Code used for deducting tax from the employee in the next column.

The date employment commenced is important for our records so please ensure that it is entered.

Total Remuneration before any deductions:

This includes salary, wages, commissions, overtime pay and all bonuses.

Total Other Allowances and Benefits:

Include all other payments to the employee or made on his/her behalf whether or not you consider such payments as non-taxable or re-imbursements of expenses incurred in respect of their employment. Such payments include traveling or casual travel expenses, entertainment, utilities or use of home as occasional office.

Also the value of all benefits, other than cash enjoyed by the employee, such as the use of a car, use of house.

Please ensure that the total sum entered under this column equates with the sum of the amounts in the analysis column for traveling, entertainment, housing, car, utilities etc.

NIC and Pension Contributions

Employers are hereby directed to insert in the appropriate column the NIC and Pension contributions.

Social Security Number

Please enter as accurately as possible to social security number of the employee.

Income Tax deducted

Please enter the total amount deducted for the period under review for the employee.

TD5 Lost of Misplaced

Where an employee has reported the loss of his/her copy of the TD5, the employer should not deliver to the employee another TD5 Form, whether photocopy or otherwise, since this document represents a credit for Tax paid.

In such circumstances, the employer should give the employee a letter addressed to the Comptroller, certifying the details already given in the TD5 form reportedly lost.

P.A.Y.E Annual Remittance Form – T.D.6

Part 2

Tax Declaration and Calculation

As an employer you are required to complete this return in respect of persons to whom you have made payments for emoluments/pension during the tax period under review, and it should include any benefits or allowances enjoyed by such persons. This amount should be paid by the due date, which is by the 15 th of the following month.

Payment after the Due Date will result in the imposition of a penalty of 10% of the amount on line 5 and interest at a rate of 1.04% per month. This is in accordance with Sections 117 & 135 of the Income tax Act Cap 15.02.

Line 1

Here you put in the total tax deducted from emoluments as per your attached TD5’s.

Line 2

This figure represents total tax deducted as per TD4s for the tax period.

Line 3

Add lines 1 and 2 - Total tax deducted.

Line 4

This figure represents the total tax remitted monthly to the Department

Line 5

The difference between line 4 and line 3 would represent PAYE not remitted or overpaid.

The amount not remitted should be paid not later than the due date specified. Payment after the Due date will result in the imposition of a penalty of ten percent of the amount on line 5 and interest at a rate of 1.04% per month. This is in accordance with Sections 117 and 135 of the Income Tax Act Cap 15.02. However the amount overpaid would first need to be verified and explained. This amount would then be transferred to the next tax period.

Before submitting this form and its attachments to the Department please ensure that it is signed, dated and stamped.

Annual Contract Tax Remittance Form

Contract Workers

If you had contract workers during the period under review you are to provide the department with a list of all your workers, the total amounts paid to them and the 10% remitted to the Department on their behalf.

This list is then attached to the Annual Remittance for Contract Tax.

Having completed the TD5 forms you are almost ready to have them delivered to the Inland Revenue department.

Employers you are required to deduct ten percent of any payment made to contractors for the supply of labour.

Part 2

Tax Declaration and Calculation

Line 1

Enter the number of contracts attached.

Line 2

Enter the total amount of contract tax deducted.

Line 3

Enter the total remitted to the Department.

Line 4

Enter the contract tax deducted but not reported and remitted.

Before submitting this form and its attachments to the Department please ensure that it is signed, dated and stamped.

Monthly Contract Tax Remittance Form C.T. 1

You are required to deduct 10% of any payment made to contractors for the supply of labour.

You are required to attach a list of the contractors paid for that period.

Before submitting this form and its attachments to the Department please ensure that it is signed, dated and stamped.

P.A.Y.E. Monthly Remittance Form P30

This form represents your monthly payment of P.A.Y.E in respect of your employees for the Tax period shown on the form and is payable by the the 15 th of the following month.

Before submitting this form and its attachments to the Department please ensure that it is signed, dated and stamped.

Hotel Accommodation Tax Monthly Remittance Form

Each of the following lines numbered 1 – 6 are for the generating of an assessment.

Advance Payment of Tax - Installments

All Companies, Traders, Partnerships, Joint Ventures and other self-employed persons subject to tax under the Income Tax Act of 1989, Section 101 - “ADVANCE PAYMENT OF TAX” are reminded of the instalment of Income Tax due on or before the following dates June 25, September 25 and March 25 on Income other than emoluments.

This instalment shall be equal to one-third of the tax based on your previous year’s profit.

Where an instalment of such tax is not paid by the due date a sum of 10% (per centum) shall be added thereto, and Interest at the rate of one and a quarter per cent per year above the prevailing prime rate of interest shall be applied if any taxpayer fails to pay by the instalment due date.

If you notice that your business is not doing as good as the previous year, you can apply in writing to the Comptroller, to have your instalment payment reduced. All such claims must be substantiated and the department must be informed prior to the due date of the instalment period.

You are to contact the Department when you have not received your instalment notice prior to the due date.

Deduction of Tax from payments to Contractors

As per Section 66 of the Income Tax Act.

Where any person makes any payment either directly or indirectly through a financial institution, to a Contractor for the supply of labour and for hiring of equipment, that person or financial institution shall deduct tax from the total amount of such payment at the rate of 10%.

Any person who fails to deduct tax from payments to a contractor is guilty of an offence and can on summary conviction, be fined or imprisoned.

For Example :

Phil contracted Terry to repair his roof for him. Terry charged Phil $20,000 for the job. This amount included $8,000 materials and $12,000 Labour.

Upon completion of the work Phil is to pay Terry the Contractor –

Phil is to pay the Inland Revenue Department the 10% contract tax deducted off Terrys’ payment for the job.