www.statusin.org

Organization : Inland Revenue Department
Type of Facility : Income Tax
Country: Montserrat

Website : https://mcrs.ms/

Know About Income Tax :

1. What is Income Tax?:
Income Tax is your contribution to Government spending. Everyone who earns or receives Income over a certain amount in the tax year pays Income Tax. The more you earn, the more you pay.

Related : Customs & Excise Department Duty Free Allowance Montserrat : www.statusin.org/8353.html

2. What Income is Taxable?:
** Pay & other earnings from regular and part-time working.
** Profits from business / Trading
** Interest from savings
** Dividends from shares in a Company
** Rental Income

3. Do I have to pay Tax on all my Taxable Income?:
No. Everyone can earn or receive an amount of Income in each tax year before paying tax. This is called the personal allowance and for 2006 the amount is EC$15000.00. If your income is below that in the tax year, you would not have to pay tax.

4. How does my Social Security payment affect my Tax?:
You Social Security Payment is an allowance in computing your annual Tax Chargeable and as such this amount will reduce the amount of tax you pay.

5. What should I do if I change my job?:
Alert the department so that you can complete the IRD 1 Form. This will permit the department to determine your Tax Code and notify your new employer of this code.

6. How do I pay tax if I work for myself?:
Under the Income Tax Act you are required to pay provisional tax in three equal installments based on the amount of tax payable on your last assessment. These must be paid in February, April and June of the year following the year in which you earned the Income.

7. What should I do if I feel that I am not paying the correct amount of Tax?:
Contact the Department and explain your concern and the department will advise you on the correct tax you should pay.

8. Do I pay tax if I have a hobby that I earn money from?:
Yes. Once this source of income is taxable you will be required to include this amount in your annual return.

9. What should I do when I begin to work for the first time?:
Contact the department so that you can complete the IRD 1 Form. This will ensure that there is a record for you at the Tax Office. In addition, this will permit the department to determine your Tax Code and notify your employer of this code.

10. Do I need to complete a return?:
Yes. At the end of each year a return is sent to you and this must be returned to the Tax Office by January 31st, the following year.

11. Is there any thing that I can do to help the tax office?:
Keeping proper records of your income, filing returns on time and paying any outstanding taxes promptly will assist in a timely processing of your tax affairs. In addition any information that will enable us to properly administer our functions will be welcome.

12. Do I have to pay taxes if I am 60 years of age?:s
Yes. Payment of taxes have nothing to do with age but hinges on the ability for you to earn income.