Commissioner at the Inland Revenue Department (IRD), Ralph Warner has attempted to allay the concerns of many people who could have to pay the quarterly Unincorporated Business Tax (UBT).
Some business owners fear that the new tax will drag them closer to the poverty line, especially as the cost of living is on the increase.
Sole traders and business partner owners are those who are being affected by the new tax, which took effect from July 1, 2016 after Personal Income Tax (PIT) was repealed on June 30, 2016.
But Warner said there are categories, which determine how much one pays and if in fact they qualify to pay the quarterly fee.
He told OBSERVER media, these individuals, who include but are not limited to: building contractors, local DJs, hucksters, night club entertainers, village shops, Spanish bars, landscapers and grass cutters, hairdressers and barbers, food vendors, taxi men, photographers, mobile car wash businesses, tailors and seamstresses, book shops, online importers and persons involved in property rentals, must come into the Inland Revenue Department, where there will be a short interview that will be conducted with them by tax payer services.
“Basically, they will inquire from them what amount of monies they earn in a day and then per week, month and then progressively go up a year. So, it’s during that process that we will ascertain from them [what or if they pay] and then we will be able to put them into the correct category of the registration fee that they should be paying,” he explained.
People who operate unincorporated businesses and make between $3,501 to $15,500 must relinquish 8 per cent of their earnings quarterly, while those who make anything above $15,500 are required to make payments of 25 per cent of their earnings.
More in today’s Daily Observer.