If you are interested in becoming a Business Owner, you are required to complete an Application for a New Business Licence (Form A), and apply to the Ministry of Economic Development. Application forms can be collected at the Inland Revenue Department or downloaded from the Government of Anguilla website at www.gov.ai . Upon approval of your business, you are then required to come to the Inland Revenue Department to register, and make payment for issuance of your Business Licence.
Business Licence fees are scheduled according to the business activity of the business. This fee schedule is outlined in the Trades, Businesses and Professions licensing Act.
Yes, there is allowance for business licences to be paid quarterly.
Before you become a road user, you must apply to the Traffic Department at the Police Headquarters for a Learner’s Permit.
To apply, you need a passport sized picture and proof of identity (i.e. your passport or birth certificate). A fee of EC$65.00 is paid at the Inland Revenue Department. Applicants must be sixteen years or older.
First, an individual is required to take a Written Test. A payment of EC$50.00 is paid to the Inland Revenue Department. The receipt is taken to the Traffic Department at the Police Headquarters to register for the Written Test.
After passing the Written Test, the individual is then required to take a Road Test. A payment of EC$90.00 is paid to the Inland Revenue Department. The receipt is taken to the Traffic Department at the Police Headquarters to register for the Road Test.
Once the Road test has been passed, the individual will be issued with a Certificate of Competency from the Traffic Department at the Police Headquarters. The individual is then required to submit the Certificate of Competency to the Taxpayer Services Unit at the Inland Revenue Department.
The taxpayer is required to complete an F1 Registration Form and an Application for New Driver’s Licence Form. Two (2) valid Government issued IDs are required upon registration as proof of verification and completion of forms. The completed forms, supporting documents and Certificate of Competency will be given to the Taxpayer Services Officer at the Inland Revenue Department to complete the processing of registration.
Upon completion of registration, the TPS officer will provide the individual with an assessment for payment. After payment, the individual will then take a photo and request of signature for the presentation of the Driver’s Licence.
If an individual has a valid driver’s licence from another country or state, the customer will be required to take it to the Traffic Department at the Police Headquarters as proof of validity and to verify length of time as a driver. If the Traffic Department deems the licence valid, they would provide you with an approved “Letter of Transfer” stating classification of your licence. This will be given to the taxpayer to return to the Inland Revenue Department.
A duplicate or replacement licence can be obtained at the Inland Revenue Department for a cost of EC$65.00
A temporary driver’s licence is required for all visitors and non-residents in Anguilla who wish to drive. The license can be obtained from the Inland Revenue Department or any car rental agency. The licence is valid for a period of three months from the date of issue at a cost of EC$67.00 or US$24.92, or for a period of 72 hours for a cost of EC$40.00 or US$14.88. Applicants must be eighteen years or older, and hold a valid driver’s licence issued outside of Anguilla.
Certificate of Good Standing
A Certificate of Good Standing is required for persons who may want to obtain a passport, request a land transfer or banking purposes. This certificate provides proof that the applicant is compliant and in good standing in paying all taxes owed to the Government of Anguilla.
Taxpayers are required to apply for a Certificate of Good Standing by completing an application form. Once completed, the taxpayer will then make payment of EC$50.00 at the Inland Revenue Department. Applications take approximately two (2) business days after receipt of payment to be processed, providing there are no arrears or queries on the account.
You will need a letter of authorization, allowing you to conduct business for another person or on behalf of a business. If applying on behalf of a deceased person who is not registered, you will be required to provide a copy of the individual’s Death Certificate.
Interim Stabilization Levy
The Interim Stabilization Levy (ISL) is a 3% levy on the gross salary/wages of all employees earning over EC$2,000.00 per month. As such, employees remuneration exceeding EC$2000.00 per month shall pay 3% on the entire amount.
The employer shall match the levy of 3% on the employee’s amount of remuneration or payment, not exceeding EC$12,000.00 per month.
An employer is required to file for an employee even if the salary amount is less than EC$2,000.00.
Self-employed persons are required to pay 6% on their earnings over EC$2,000.00 per month.
A self-employed person is still required to file if earnings are less than EC$2,000.00 per month.
In regards to ISL - Persons over the age of 65 are required to file and pay the Interim Stabilization Levy once their salary exceeds EC$2000.00.
Answer: In regards to Property Tax – A Senior exemption is granted for persons over the age of 65.
There is a late filing penalty of EC$50.00 per day for each day filed late, plus 1% interest per month.
The late filing penalty is enforced to foster compliance.
Unfortunately, liquor licences cannot be paid on a quarterly basis.
Any business owner who misses the liquor licence court will be required to pay a fee of EC$25.00 per day of operation until the next Liquor Licence Court sitting which take place once every quarter.
Money Transmission Levy
The Money Transmission Levy is a 2% transaction levy on the amount of
funds being transmitted outside of Anguilla, per transaction.
The Money Transmission Levy comes into effect on 1st January 2022.
Any Money Service Business Licensees holding a “Class A” Licence is authorized to charge the Money Transmission Levy. These include GraceKennedy Money Services (Anguilla) Limited – agent for Western Union and the General Post Office – agent for MoneyGram.
On a monthly basis, the Money Service Business Licensee would remit the money collected from customers, to the Comptroller of IRD. A return is required to be filed not later than 30 days after the end of each month.
Failure to file a return as and when required would result in a penalty of EC$50 for each day of default to a maximum of EC$2000.
How GST Works
As a GST registered business, you will charge GST when you sell a taxable good or service.
You will pay GST on importation or when you purchase goods and services domestically from a GST registered business.
Output tax is the GST charged to customers when they purchase a taxable good or service.
Input tax is the GST paid on local purchases and imports used in the course of the business.
At the end of the month, you will total all your output tax and input tax and declare the total amounts on your GST return. If the output tax exceeds the input tax, the difference is the tax payable to the Government of Anguilla Inland Revenue Department.
If the input tax exceeds the output tax, this results in a credit which you will carry forward to the next three (3) months. If at the end of the three (3) months, you have a credit of EC$1,000 or more remaining, you may apply to the Comptroller for a refund.
You can claim input tax on all purchases used in the course of your business. However, there are some exceptions and conditions. Input tax is not claimable on club membership and there are only special conditions under which claims are allowable on passenger vehicles and entertainment. You also cannot claim input tax on any purchases for personal use.
What is GST
The Government needs to create more sustainable and reliable public finance by:
- Broadening the base by taxing goods and services not previously taxed.
- Creating a more efficient Tax Administration.
- Enabling the introduction of an automated tax administration system.
- Promoting a culture of voluntary compliance through better record keeping and enhanced taxpayer support.
- Generating more revenue.
GST, or the Goods and Services Tax, is a consumption tax charged on a wide range of goods and services.
GST is a broad-based tax (covering most goods and services). It is a part of the Government’s reform programme aimed at achieving fiscal sustainability.
GST will be introduced in Anguilla on 1st July 2022.
GST is replacing five (5) existing taxes - Accommodation Tax, Communication Levy, Environmental Levy, Public Entertainment Tax and Interim Goods Tax (IGT).
All persons and businesses who purchase or import most goods or services will be required to pay GST.
No. Only GST registered taxable persons are entitled to charge and collect GST for the government.
A taxable person is a business or person engaged in taxable activity and registered for GST or required to be registered.
The GST rate is 13%.
The threshold is EC$300,000.00
If you conduct a taxable activity that involves the supply of goods or services that are taxable and the total value at the end of any period of 12 months or fewer equals or exceeds EC$300,000.00, you will be required to register for GST.
In the case of Short Term Guest Accommodation Suppliers, Auctioneers, Public Entertainment Providers/Promoters, State or Statutory Body - registration is required from the date of commencement of that activity.
If you meet the requirements for registration, you must submit an application to the Comptroller of IRD within 15 days of becoming liable to register.
Mandatory registration – If you meet the registration requirement you must apply within 15 days of recognizing that the threshold has been met.
Voluntary registration – If you do not meet the registration requirements but wish to register you may apply to the
Comptroller of Inland Revenue for consideration to be registered. However, there is no guarantee that you would be registered, as it will depend on your ability to keep proper records amongst other things.
Forced registration– If you are required to register and fail to apply for registration as required, you may be registered from a date-determined by the Comptroller i.e the beginning of any period during which taxable activity was discovered.
Registered Taxpayers will be given a unique Taxpayer Identification Number (TIN) that must be used with all correspondence with the IRD and Customs.
They will be furnished with a registration certificate that must be displayed noticeably at their place of business.
(c )The Comptroller is required to establish and maintain a register containing the relevant details of all registered persons, and shall be open to the public at all reasonable hours and available in electronic media.
A taxable person is required to notify the Comptroller, in writing, within 15 days of —
(a) any change in the name, address, place of business, constitution, name of partners, or nature of the principal taxable activity or activities of the person
(b) any change of address from which, or name in which, any taxable activity is carried on by the taxable person
(c) any change in circumstances if the person ceases to operate or closes on a temporary basis
No application for closure will be processed until the Taxpayer has been registered for at least two (2) years.
Cancellation of Registration is not allowed for Short Term Guest Accommodation Suppliers, Auctioneers, Public Entertainment Providers/Promoters, or Statutory Bodies.
Any activity or business conducted regularly and continuously whether or not for profit. It does not include employment, private recreational pursuits or hobbies.
Taxable supplies are goods sold or services provided in Anguilla in the course of a taxable activity carried on by a GST registrant. The concept of a taxable supply includes standard and zero-rated supplies, but not exempt supplies.
Objections and Appeals
An appealable decision means an assessment or decision that a person has the right to object and appeal. For example, a decision on an application to register or reassessment of tax liability.
90 days after the service of a notice on an appealable decision.
Yes, the Comptroller can extend the time for lodging an objection under certain circumstances, for example if the objector was ill or out of country.
The objection must be done in writing, the specific grounds upon which the objection is made must be detailed and evidence/ documents to support the objection must be provided.
Yes, in the case where an objection relates to GST payable, a security payment equal to 50% of such amount must be paid before the objection is considered.
Within 90 days after the objection is lodged.
Within 30 days of notice of the Comptroller’s decision.
Yes, interest is payable at rate of 1 % of refund due.
There are 3 levels namely
i) Objection to the Comptroller
ii) Appeal to the Appeal Tribunal and
iii) Appeal to the High Court.
The Tribunal consists of a Chairman and 3 to 4 members. The Chairman must be an attorney at law with 7 years or more of practice and the other members must be qualified either in social services, accountancy, finance, and other similar discipline.