Government Tax Credit
Tax Deferral Employment Retention Programme

1.ENTITY AND INITIATIVE/ASSISTANCE
Ministry of Finance – Department of Inland Revenue - Tax Credit & Tax Deferral Employment Retention Program

2.TARGET GROUP
Medium and large sized businesses, excluding the following: retail or wholesale grocery store, hotel and resorts, regulated financial and insurance entities, regulated telecommunications businesses and gaming businesses.
 
3.BENEFITS
 
PHASE 1
            This Program aims to provide businesses with the cash flow of up to $600,000.00 for 3 months, to preserve current employment levels for non-executive employees, and include the following:
(a)        Non-reimbursable tax credit for Business Licence fees and Value Added Tax (VAT) of up to $300,000 for up to 3 months
(b)       Tax deferral for Business Licence fees and Value Added Tax (VAT) of up to $300,000 for up to 3 months, to be deferred to January 2021, after which it will be repayable in monthly installments over 12 months
The applicable amounts of tax credit/payment deferrals will vary by business, depending on payroll size and tax history. Eligible businesses must have a turnover of at least $3 million and no less than 25 employees.

PHASE 2
            The second phase extends to all VAT registrants, as opposed to the $3 million turnover ceiling imposed in phase 1. It will also include hotels to support non-executive payroll in an effort to retain employment. Phase 2 includes:
           
(a)        Non-reimbursable tax credit and deferral for Business Licence fees and Value Added Tax (VAT) of $300,000 to up to $5,000,000 for up to 3 months; depending on staff level. For the amount deferred, payments will be deferred to January 2021, after which it will be repayable in monthly installments over 12 months

4.REQUIREMENTS
  • All VAT registrants with a turnover of at least $100,000; including hotels
(b)       Businesses must agree to retain 80% of employee level as at February 2020 through to October 2020
(c)        Businesses must be in good standing with all tax agencies
(d)       Tax benefit can only be used on non-executive payroll

5.COMMENCEMENT AND EXPIRY DATES
Phase 1 of the program ran from March 2020 – June 2020. Phase two will run from June 2020 to August 2020.

6.HOW TO APPLY:
All eligible businesses may apply online at http://atlas.revenue.gov.bs.