For the period 2014 to 2016, a manufacturer shall be entitled to receive tax rebate only if the Comptroller is satisfied that the manufacturer has complied with a number of government policies, including tax compliance.
A manufacturer’s application submitted to the comptroller will, within 14 days, be advised if it qualifies for a tax rebate. According to recently approved Manufacturers Tax Rebate Bill, tax compliance, investment and employment will also be considered as qualifiers for a tax rebate.
“A manufacturer who qualifies to receive a tax rebate shall be listed by the Comptroller as a Bona Fide Manufacturer for the period of one year,” states the legislation. A manufacturer established as bona fide, may utilise all credits provided by the government as tax rebate for the financial year. The Comptroller will also have the power to cancel a manufacturer’s bona fide status for tax rebate, if the manufacturer ceases to comply with the policy conditions.
For the period 2014 to 2016 there shall be a tax rebate budget of EC$2.5 million for each year to be apportioned and distributed to manufacturers. Tax shall be applied on Value Added Tax (VAT) exclusive of sales, and used against any tax – with the exception of trust taxes – which includes but is not limited to Withholding Tax, PAYE and VAT.
By Linda Straker