Annual Stamp Tax (AST) – Act. 36 of 1992. It is a tax on gross receipts replacing postage stamp on bills.
Annual Stamp Tax (AST) Act 36 of 1992
The Annual Stamp Tax charged for a year is based on the gross receipts for the previous year. That is, the tax for 2000 is based on the gross receipts for 1999.
Please note that the tax was amended in 2015. Prior to tax period 2016, the rates were as follows;
0.25% in respect of businesses with gross receipts over $30,000 per annum but not exceeding $100,000 per annum;
0.5% in respect of businesses with gross receipts exceeding $100,000 per annum.
The percentage rate to be used in calculating the stamp tax (effective 2016) is:
0.75% in respect of businesses with gross receipts in the amount of $300,000 and above per annum.
0.5% in respect of businesses with gross receipts under $300,000 per annum.
NB: In applying the percentage rate of this tax, the first Thirty Six Thousand Dollars ($36,000.00) is exempt.
Gross Receipts shall include:
Sale or the disposal of goods and services;
Cost of material from stock;
Commissions and Fees including income fees from copyright, patents and intellectual property; any income not of a capital nature.
The minimum Stamp Tax payable is $100.00.
Returns are due by March 31st of the assessment year. . Any person who fails to submit a return within the prescribed time or any extended time allowed by the Comptroller would be liable to a penalty equal to the greater of:
5% of the amount of the tax owing plus a further 1%for the amount of the tax owing for each month or part of a month during which failure to file continues, and
$500, plus a further $100 for each month or part month the failure to file continues.
Late filing fee is limited to 10,000
Payable in nine monthly installments, starting from April and going right on to December of the year the tax is payable.
Any Stamp Tax not paid within the specified time shall incur interest at the rate of 2% per month or part thereof during the period it remains unpaid.
If you are not satisfied with any assessment by the Comptroller, you may appeal in writing within thirty (30) days of the date of the notice of assessment, specifying your ground for appeal, and the Comptroller will re-consider the assessment and inform you of his decision. If you are still not satisfied with the Comptroller’s decision, you may appeal to the independent Appeal Commissioners.