Frequently Asked Questions
Our frequently asked questions aim to answer questions that are common about the MCRS
Inland Revenue FAQs
Income Tax is your contribution to Government spending. Everyone who earns or receives Income over a certain amount in the tax year pays Income Tax. The more you earn, the more you pay.
- Pay & other earnings from regular and part-time working.
- Profits from business / Trading
- Interest from savings
- Dividends from shares in a Company
- Rental Income
No. Everyone can earn or receive an amount of Income in each tax year before paying tax. This is called the personal allowance and for 2006 the amount is EC$15000.00. If your income is below that in the tax year, you would not have to pay tax
Your Social Security payment is an allowance in computing your annual tax xhargeable and as such this amount will reduce the amount of tax you pay.
Alert the department so that you can complete the IRD 1 Form. This will permit the department to determine your Tax Code and notify your new employer of this code.
Under the Income Tax Act you are required to pay provisional tax in three equal installments based on the amount of tax payable on your last assessment. These must be paid in February, April and June of the year following the year in which you earned the Income.
Contact the Department and explain your concern and the department will advise you on the correct tax you should pay.
Yes. Once this source of income is taxable you will be required to include this amount in your annual return.
Contact the department so that you can complete the IRD 1 Form. This will ensure that there is a record for you at the Tax Office. In addition, this will permit the department to determine your Tax Code and notify your employer of this code.
Yes. At the end of each year a return is sent to you and this must be returned to the Tax Office by January 31st, the following year.
The due date for Individual tax returns filing is February 28 of each year and Self-employed and Companies it is March 31st of each year.
Keeping proper records of your income, filing returns on time and paying any outstanding taxes promptly will assist in a timely processing of your tax affairs. In addition any information that will enable us to properly administer our functions will be welcome.
Yes. Payment of taxes have nothing to do with age but hinges on the ability for you to earn income.
The first $15,000.00 of any earnings is given as a tax free personal allowance, then the mortgage interest paid, life and health insurance premiums, personal social security and dependent relative allowance are deducted (allowances must be claimed & proof provided). After all deductions all remaining income is then taxed as follows:
First 5,000.00 @ 5%
Next 5,000.00 @ 15%
Next 5,000.00 @ 25%
Next 120,000.00 @ 30%
Anything beyond 135,000.00 @ 40%
Based on earnings Weekly, Fortnightly & monthly 4% social security is calculated and then tax code is found in the tax table. When this is done the tax code is used along with the salary of wage that was earned to find deduction in the tax table.
An individual can claim for their elderly dependent relative that is living on island and is unable to earn for him/herself and are not receiving any annual income from Social Services in the amount of $7200.00. Also individuals can claim for incapacitated relatives up to a maximum of $2,400.00 per person.
An individual who has a business or company and has related losses in regards to this can claim these losses when submitting their financial statements. The losses claim cannot reduce the tax payable for any year to less than one half of the amount which would have been payable had the set off not been made.
The excess of such loss shall be carried forward and shall be set-off against the income of that person for the 6 years next following.
Deductions can be claimed on personal allowance, mortgage interest, life and health insurance premium, social security and incapacitated dependent relative allowance.
An individual can claim a refund by filing a return form declaring income from all source and claiming the relevant deductions. Given the computation of the assessment and the entity has overpaid taxes that is how a refund becomes due.
An individual can get any updates as required on any outstanding tax type it’s a matter of making contact with the Montserrat Customs and Revenue Service and make an enquiry.