| Reverse
Tax Credit |
| With
effect from income year 2009 where any employed individual - (a)
who is resident in Barbados, and (b) who
earns less than $18,000 annually but not more than $1,500 monthly; applies
to the Commissioner in such forms as the Commissioner approves, within
2 years of the income year in which the earnings were paid, that person
shall be entitled to a credit of $1300. |
| |
| Subsection
(1) shall not apply - (a) to self-employed
persons (b) to directors of
companies that are controlled by 5 or less persons (c) to beneficiaries
of a trust or an estate within the meaning of Section
40, or (d) in respect of earnings payable to the estate of a deceased
person SECTION
65D |
| |
| In determining
whether a person mentioned at 1(b) above qualifies for the credit, consideration
must be given to the following:- |
Qualifying Levels of Earnings |
| That
weekly or biweekly earnings when aggregated should not exceed $1,500 for
the month. However minor fluctuations of the monthly pay should not disqualify
a person from obtaining the credit, provided the monthly amounts when
aggregated, do not exceed the annual limit of $18,000 which is the more
critical and overriding factor here. |
| |
|
Partial Employment |
| where
a person has commenced or ceased employment during the year but had earnings
not exceeding $1,500 monthly or $18,000 gross for the year, then those
persons are entitled to claim the credit; commencement date of employment
and date employment ceased must be ascertained if not provided. This would
assist in determining the monthly level of earnings. |
| |
|
17 Year Old - Entitlement |
| Where
the conditions stipulated at 1(a) and (b) above are met, an individual
under the age of 18 years may not be denied entitlement to the credit
by virtue of age. However the parent(s) of that individual is not entitled
to claim child allowance for that individual under Section 38B(1)(d). |
| |
|
Fulltime Student – Non-entitlement |
| Where
a person under the age of 25 years but not under the age of 17 years at
the end of the income year was during the income year receiving full time
instruction at an educational establishment whether in Barbados or abroad
and that person was employed part time during the said income year, then
that person is not entitled to claim the credit.
|
|
Dual Work Status – Other Income |
| An employed
person, who is an artisan may also have other income from self-employment,
in which case that person is not entitled to claim the credit. |
| |
|
Other Benefits, e.g. Meals, Live-in Accommodations |
| In addition
to wages, a live-in maid or other home helper may be enjoying fringe benefits
which when quantified may void entitlement to the credit. An employer
completing the Certificate of Earnings (A47:009A form) must provide this
information, if relevant. |
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|
Non-Payment of NIS Contributions |
| The non-payment
of NIS contributions by employer or employee or both should not in itself
constitute a criterion for disallowing outright a claim for the credit
even though the payment of these contributions do assist in establishing
the creditability of the employer and employee and that they do have an
arm’s length relationship. Cases of non-payment of NIS Contributions
may be referred for investigation. |
