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The 2013/2014 Budget Statement which was read by Bob Richards, Minister of Finance, on Friday, February 22, 2013, resulted in the following changes to tax administered under the Office of the Tax Commissioner.
The Payroll Tax Amendment Act 2013 (PTAA 2013) stipulates that Employers who hire Bermudian Employees from April 1, 2013 – March 31, 2015 inclusive will pay tax at 5.25 percent for the first two years of employment on the remuneration earned by those employees. Only those New Bermudian Hires who had been unemployed for at least three consecutive months immediately prior to the date of employment will be eligible for the reduced rate.
Employers wishing to take advantage of the reduced rate must complete the New Bermudian Hire – Statement of Eligible Employees Form and submit it to the Office of the Tax Commissioner each time a Bermudian is hired under the terms of the PTAA 2013.
An employer may deduct and retain from any salary or wages paid by him to an employee, a maximum of 5.25 percent during that tax period.
Wages have also been affected by the Budget and effective from April 1, 2013, self-employed persons and deemed employees are required to adjust their notional remuneration by at least 1.9 percent as a result of the annual increase in the Bermuda Consumer Price Index on December 31, 2012.
Some other changes include:
Section 4 of the Corporate Services Tax Act 1995 has been amended to reflect an increase in the Corporate Services Tax Rate from 4 percent to 6 percent effective April 1, 2013.
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