Registration of New Employer for PAYE
2008 Department of Inland Revenue, Treasury Building, Bridge Street, Bridgetown, Barbados
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All companies carrying on business in Barbados are required to register with the Department of Inland Revenue. But, before registering with the Department, companies must have been registered with the Corporate Affairs and Intellectual Property Office. Registration Application Form A47:147 is to be completed and must be submitted with the following legal documents:
1. Certificate of Incorporation
2. Articles of Incorporation
3. List of Directors
4. Notice of the Address of Registered Office
5. Request for Name Search and Name Reservation
6. The By Laws
7. International Business Licence (if applicable)
Upon registration, the company is assigned its tax account and reference numbers. These numbers must be quoted at all times in any communication with the Department and must also be entered on the company's Corporate Tax Return when filing.
Sole-Traders & Partnerships
As with corporations, Sole-Traders and Partnerships must first register with the Corporate Affairs and Intellectual Property Office (CAIPO), before seeking to be registered with the Department of Inland Revenue.
Registration Application Forms A47:146 and A47:144 for Sole-Traders and Partnerships respectively must be completed and submitted with the Certificate of Registration obtained from CAIPO.
The National Registration (ID) Number is confirmed as the Tax Account Number for these categories of Tax Payers.
Every employer who employs persons earning more than $481 per week or $2 083 per month is required to register as an employer with the Commissioner of Inland Revenue for PAYE purposes. The employer is then issued with all the required forms used in the PAYE system.
Registration Application Form A47:134 is used for registering a new employer. This form requires detailed information of the employer and his business concern. It is also important for all Sole-Traders and Partners to provide their National Registration and National Insurance Numbers on their application forms.
Form A47:135 records the PAYE Account Number assigned to the employer after successful completion of registration. It must be retained by the employer as evidence of his registration as an employer with the Department.
. The Employee Declaration Form, A47: 001. All employees must complete this form at the commencement of employment. It allows the employer to determine the particular Tax Code under which the employee will be taxed. In respect of income year 2009 and subsequent years, each employed person starts with a basic allowance of $25, 000 and this may increase depending on the amount of other allowances that person is entitled to claim.
. A person claiming $25,000 would have a tax code of 250W or 250M depending on whether that person is being paid weekly or monthly. The code enables the employer to deduct the correct amount of tax from each employee.
. Another form issued to the employer is the PAYE Tax Deduction Remittance Form, A47:004 (Available on-line). After taxes have been deducted from all persons liable to be taxed, the employer is obligated to pay all sums over to the Commissioner on or before the 15th of the month following the month in which it was deducted.
.Employers must ensure that the business PAYE account number is stated on the remittance form (A47:004). Payments may be posted, hand delivered or placed in the 24 hr. mailbox on the north side of the Ground Floor, Treasury Building.
. The Tax Table Book . This book contains a set of instructions for the employer. These instructions, if closely followed, will greatly assist the user in deducting the correct amount of tax. They will also advise the employer what amounts are taxable, what amount must be deducted for a given period from the employee's remuneration and how to account for the amounts so deducted.
. However, the main purpose of the Tax Tables is to guide the employer as to how much tax is to be deducted from each employee's remuneration under the Pay As You Earn (PAYE) tax system.