The Payroll Taxes (Act), 2004 provides for a tax to be levied on employers including self-employed persons in respect of actual or notional remuneration. Remuneration for the purpose of the Act includes wages, salary, leave pay, bonus, gratuity, fees, allowances, money paid under a profit-sharing scheme, severance pay, housing and other benefits in kind.

An employer or self-employed person is characterized as either a Class 1 employer or a Class 2 employer. To qualify as a Class 1 employer, all three(3) conditions must be met:

  • Payroll must not exceed $150,000 within a financial year.
  • Annual turnover must not exceed $300,000.
  • Employees and deemed employees must not exceed seven (7).

An employer or self-employed person who does not qualify as a Class 1 employer is a class 2 employer.

The tax payable together with the return is due for submission by the 21st of the month following to which the tax relates. 

Process

Step 1:  Collect Payroll Tax Employer/Self-Employed Person registration form, from any of the Inland Revenue Office locations
              or print form online.

Step 2:  Complete the Payroll Registration Form and return to Inland Revenue Main Office or Virgin Gorda Branch.

Step 3:  A Payroll Tax package is issued by the department to each registered tax payer.  

Step 4:  The Inland Revenue Department issues a Monthly Payroll Tax Remittance - Employer Form (F47).

Step 5:  Complete the Monthly Payroll Tax Return and Remittance Forms and submit with payment due to the Main Office in Road Town, Tortola or the Virgin Gorda branch.

Step 6:  A Government receipt will be issued and payment is immediately reflected on the account.

Step 7:  The Inland Revenue Department issues an Annual Payroll Remittance Form (F48), by 31st December of the current tax year.

Step 8:  Complete the Annual Payroll Tax return and Remittance forms and submit with the necessary supporting documents to the Main Office or the Virgin Gorda Branch.

Supporting Documents

The following form must be printed and mailed to the customers:
Monthly:
Monthly Payroll Tax Remittance - Employer (F47)

Annually:
Annual Payroll Remittance (F48)

Method of Applying

Electronic or In Person

Turn Around Time

Once the return form and all supporting documents have been submitted, it is processed immediately.

Additional Notes

Each employee is entitled to an annual tax exemption of the first $10,000 earned remuneration. An employee with multiple employers must advise both employers and the Commissioner of Inland Revenue. The primary employer or the employer with whom he/she has been employed the longest has the benefit of the $10,000.00 tax exemption.

All forms and returns related to payroll taxes can be collected at the Inland Revenue Department.
A return is normally due from each employer within 21 days of the end of the month.
An annual return is due within 120 days of the end of the calendar year.

Deadlines:
Payroll Tax Employer/Self-Employed Person Registration  within 30 days of start of business
Monthly Return of Payroll Tax (P6) - within 21 days after the month for which taxes are due
Monthly Payroll Tax Remittance for Employer (F47) - within 21 days after the month for which taxes are due
Return of Notional Renumeration and Financial Statement (P11) - due by 31st March of the following year
Annual Return of Payroll Tax (P7) - due by 30th April of the following year
Annual Payroll Remittance (F48) - due by 30th April of the following year
Record of Employee Renumeration and Tax Payable (P1) - due by 30th April of the following year

Penalties:
Fifty ($50) dollars or five percent (5%) of the tax payable, whichever is greater.
A further one percent of the amount of tax payable for each month during which failure to file continues.

Interest:
In respect to tax that is not paid by the due date, interest on the amount owing shall be charged commencing from the due date to the date that amount is paid.

 

Department Contact Information

Inland Revenue Department

Mailing Address:
P.O. Box 4634
Road Town, Tortola 
​Virgin Islands (British) VG1110

Physical Addresses:
Central Admin Complex
33 Admin Drive 
Road Town, Tortola VG1110

Vanterpool’s Building
The Valley, Virgin Gorda VG1150

Business Hours:

Tortola/Virgin Gorda
Monday - Friday (except on Public Holidays)
8:30 a.m. - 4:30 p.m.
Cashier: 9:00a.m.  - 3:30 p.m.

District Office Hours: 
3rd Wednesday Monthly
The Settlement, Anegada VG1140

3rd Friday Monthly
Great Harbour, Jost Van Dyke VG1160

Email Address: bvitaxes@gov.vg

Road Town, Tortola
Telephone: 1(284) 468-2155
Fax: 1(284) 468-3379

The Valley, Virgin Gorda 
Telephone: 1(284) 468-6545
Fax: 1(284) 468-6501

The Settlement, Anegada
Telephone: 1(284) 495-8048

Great Harbour, Jost Van Dyke
Telephone:1(284) 495-0241

Physical Map Location: