Pay As You Earn (P.A.Y.E.)

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Governance

  • The fourth schedule of the Income Tax Act, Chapter 67:01 of the Laws of the Commonwealth of Dominica 1990.

Responsibilty to Pay

  • Employed individuals whose income surpass the income tax threshold.

Chargeable on

  • The empolyment or business income of individuals.

Rate of Tax

  • After the tax free allowances are deducted from the tax payer’s taxable earnings, tax is charged at 16% on the first $20,000.00 26% on the next %30,000.00 and 36% thereafter.

Due Date

  • PAYE shall be payable by the person responsible for making the deductions and shall be paid to the Comptroller of Inland Revenue within 15 days after the end of the month during which that tax was deducted or deductible.

Filing

  • Returns must be submitted monthly on or before the 15th of the month for the previous month. An annual return should also be filed before the 31 January of the following year. These should be filed irrespective of whether tax is deducted fom the income of the individual.

Penalties

  • A fixed penalty of 10% is charged on the original tax balance and monthy interest is charged at 1% on the priniciple amount which remains outstanding

Civil Penalties

  • See sections 110-116

Criminal Penalties

  • Any person who:

a)      fails or neglects to furnish to the Comptroller any return or document as and when required under this act;

b)      fails to comply with the requirements of any notice in writing served to him under this Act;

c)      refuses or neglects to answer truly and fully any questions forwarded to him or to supply any information requested from him in relation to his asssessable or the assessable income of any other person

d)     fails to keep a proper record of this transactions or to preserve any books of accounts or documents as required under Section 72;

e)      fails to disclose in any return income made by him any assessable income accrued to him or any materials facts which should have been disclosed;

f)       signs any return or document rendered to the Comptroller without reasonable grounds for believing that this return or document or any part thereof to be correct

g)      obstructs or hinders any person appointed or employed under this Act in the discharge of his duties is guilty of an offence and liable to a fine of one thousand dollars or to imprisonment for one year.

  • Offences by employers. Section 122 which states any person who;

(1)   within the prescribed time, fails to register as an employer, or to notify any change of address or to notify that he has ceased to be an employer;

(2)   within the prescribed time, fails to deduct any amount of tax from remuneration paid to an employee;

(3)   within the prescribed time, fails to pay to the Comptroller any amount of tax deducted from remuneration paid to an employee;

(4)   fails to comply with any direction issued by the Comptroller under the Fourth Schedule;

(5)   fails to maintain a record of remuneration paid to his employees and tax deducted there from;

(6)   within the prescribed time, fails to deliver to any employee a certificate of tax deducted from remuneration;

(7)   within the prescribed time, fails to furnish to the Comptroller an annual return of tax deductions and remittances;

  • Offences by employees. Section 122 which states any person who within the prescribed time, fails to lodge the further declaration required by paragraph 3(5)(b) of the fourth schedule upon ceasing any entitlement to any of the deductions or allowances claimed by him in a declaration previously furnished by him in respect of that year of assessment is guilty of an offence and liable to a fine of one thousand dollars or to imprisonment for one year.

-See sections 117-126

Objections/Appeals

  • See Sections 87-93

To view the PAYE guide and tax tables, please click the following link:

P.A.Y.E guide & Tax Tables