Payroll Tax Rates Act 1995

WHEREAS it is expedient to prescribe the rates of tax chargeable, and other matters falling to be prescribed, under the Payroll Tax Act 1995 [title 14 item 35], and to provide for connected purposes:

[Words of enactment omitted]

Short title and construction

1 This Act may be cited as the Payroll Tax Rates Act 1995 and is to be read as one with the Act.

Interpretation

2 In this Act —

"the Act" means the Payroll Tax Act 1995 [title 14 item 35];

"hotel" and "restaurant" have the meanings respectively assigned to those expressions in subsection (4) of section 3 of the Miscellaneous Taxes (Rates) Act 1980 [title 14 item 47] immediately before the commencement of the Act;

"section" (except in this section and the Schedule to this Act) means section of the Act.

The standard rate

3 (1) 12% is prescribed as the rate for the purpose of paragraph (a) of subsection (1) of section 3.

(2) 12% is prescribed as the rate for the purpose of paragraph (b) of subsection (1) of section 3.

[Section 3 amended by 1996:5 effective 1 April 1996]

Rate where employees are in special situations

4 7% is prescribed as the rate for the purpose of section 9.

[Section 4 amended by 1996:5 effective 1 April 1996]

Rates for certain classes of employer

5 The classes of employer, and the rates, prescribed for the purpose of section 10 are those respectively set forth in the following Table—

CLASS	RATE
Class A
(a) employer operating a hotel
(b) employer operating a restaurant
(c) employer with an annual payroll of not less than $100,000 and not more than $200,000	9%

Class B
(a) the Bermuda Hospitals Board
(b) the Corporation of Hamilton
(c) the Corporation of St George's
(d) an educational, sporting or scientific institution, association or society which in the Minister's opinion is carried on otherwise than for the purpose of gain by its individual members
(e) a self-employed person carrying on business as a taxi-driver or a fisher man or a farmer or horti culturist
(f) an employer with an annual payroll of less than $100,000	7%
Class C
(a) the Government
(b) a parish council
(c) a Government Board
(d) the Bermuda College
(e) a school which is operated with the consent of the Minister responsible for Education under the Schools Act 1926, or was in existence at the commencement of that Act
(f) a body (whether incorporated or not) which in the Minister's opinion has been established principally for religious purposes, but as respects only such aspects of its affairs as do not consist of or involve carrying on business of a commercial character
(g) a charitable organization registered under the Charities Act 1978
(h) a cultural organization which in the Minister's opinion (arrived at after consultation with the Minister responsible for Cultural Affairs) is carried on otherwise than for the purpose of gain by its individual members
(i) the Bermuda Festival Ltd.	4.5%

[Section 5 amended by 1996:5 effective 1 April 1996, and by 1997 : 9 effective 1 April 1997]

Exempt undertakings: assumed remuneration of employees

6 (1) Subject to subsection (2), $16,500 ("the base figure") for a three-monthly tax period is the amount prescribed for the purpose of section 16.

(2) The Schedule has effect to modify the base figure to reflect changes in the value of money.

Tax recoverable from employees

7 The statutory proportion prescribed for the purpose of subsection (2) of section 19 is 4.5%.

[Section 7 amended by 1996:5 effective 1 April 1996]

SCHEDULE (Section 6(2))

Indexing of Assumed Remuneration for Exempt Undertaking Employees

1 (1) If the Bermuda Consumer Price Index published by the Government ("the Index") for the December next preceding the relevant tax periods varies from the Index for the December next preceding that December, then subsection (1) of section 6 of this Act has effect in relation to those periods as if there were substituted for the base figure an amount arrived at by—

(a) varying the base figure by a percentage equal to the percentage variation in the Index; and

(b) if the result is not a multiple of $5, rounding up the result to the nearest amount that is such a multiple.

(2) For this purpose, the expression "the relevant tax periods", in relation to the December next preceding those periods, means every tax period falling within the time which—

(a) commences on the first day of April next following that December; and

(b) ends immediately before the first day of the next following April.

(3) This Schedule affects tax periods commencing on or after 1 April 1996.

Bermuda Consolidated Legislation

Payroll Tax Rates Act 1995