Payroll Tax Rates Act 1995
The Laws of Bermuda
Annual Volume of Public Acts 1995 : 17

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BERMUDA
1995 : 17

PAYROLL TAX RATES ACT 1995

[Date of Assent 22 March 1995]

[Operative Date 22 March 1995]

ARRANGEMENT OF SECTIONS

1 Short title and
construction

2 Interpretation
3 The standard rate
4 Rate where employees are

in special situations
5 Rates for certain classes

of employer

6 Exempt undertakings:
assumed remuneration of
employees

7 Tax recoverable from
employees

SCHEDULE

WHEREAS it is expedient to prescribe the rates of tax
chargeable, and other matters falling to be prescribed, under the Payroll
Tax Act 1995, and to provide for connected purposes:

Be it enacted by The Queen's Most Excellent Majesty, by and
with the advice and consent of the Senate and the House of Assembly of
Bermuda, and by the authority of the same, as follows:

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Short title and construction
1 This Act may be cited as the Payroll Tax Rates Act 1995 and is to
be read as one with the Act.

Interpretation
2 In this Act —

"the Act" means the Payroll Tax Act 1995;

"hotel" and "restaurant" have the meanings respectively assigned
to those expressions in subsection (4) of section 3 of the
Miscellaneous Taxes (Rates) Act 1980 immediately before the
commencement of the Act;

"section" (except in this section and the Schedule to this Act)
means section of the Act.

The standard rate
3 (1) 11.5% is prescribed as the rate for the purpose of
paragraph (a) of subsection (1) of section 3.

(2) 11.5% is prescribed as the rate for the purpose of
paragraph (b) of subsection (1) of section 3.

Rate where employees are in special situations
4 6.5% is prescribed as the rate for the purpose of section 9.

Rates for certain classes of employer
5 The classes of employer, and the rates, prescribed for the
purpose of section 10 are those respectively set forth in the following
Table—

CLASS RATE

Class A

(a) employer operating a hotel

(b) employer operating a restaurant

(c) employer with an annual payroll of not less
than $100,000 and not more than $200,000 8.5%

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Annual Volume of Public Acts 1995 : 17

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Class B

(a) the Bermuda Hospitals Board

(b) the Corporation of Hamilton

(c) the Corporation of St George's

(d) an educational, sporting, cultural or scientific
institution, association or society which in the
Minister's opinion is carried on otherwise than
for the purpose of gain by its individual
members

(e) a self-employed person carrying on business
as a taxi-driver or a fisherman or a farmer or
horticulturist

(f) an employer with an annual payroll of less
than $100,000 6.5%

Class C

(a) a parish council

(b) a school which is operated with the consent of
the Minister responsible for Education under
the Schools Act 1926, or was in existence at
the commencement of that Act

(c) a body (whether incorporated or not) which in
the Minister's opinion has been established
principally for religious purposes, but as
respects only such aspects of its affairs as do
not consist of or involve carrying on business
of a commercial character

(d) a charitable organization registered under the
Charities Act 1978 4.0%

Class D

(a) the Government

(b) the Bermuda College

(c) a Government board 3.5%

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Class E

(a) an employer whose payroll is less than $650
in a tax period

(b) a self-employed person whose notional
remuneration is less than $650 in a tax period
and who has no employees 0.0%.

Exempt undertakings: assumed remuneration of employees
6 (1) Subject to subsection (2), $16,500 ("the base figure") for a
three-monthly tax period is the amount prescribed for the purpose of
section 16.

(2) The Schedule has effect to modify the base figure to reflect
changes in the value of money.

Tax recoverable from employees
7 The statutory proportion prescribed for the purpose of
subsection (2) of section 19 is—

(a) subject to paragraph (b) of this section, 4.0%;

(b) for the Government, the Bermuda College or
a Government board, 3.5%.

SCHEDULE (Section 6(2))

Indexing of Assumed Remuneration for Exempt Undertaking Employees

1 (1) If the Bermuda Consumer Price Index published by the
Government ("the Index") for the December next preceding the relevant
tax periods varies from the Index for the December next preceding that
December, then subsection (1) of section 6 of this Act has effect in
relation to those periods as if there were substituted for the base figure
an amount arrived at by—

(a) varying the base figure by a percentage equal to the
percentage variation in the Index; and

(b) if the result is not a multiple of $5, rounding up the
result to the nearest amount that is such a multiple.

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(2) For this purpose, the expression "the relevant tax periods",
in relation to the December next preceding those periods, means every
tax period falling within the time which—

(a) commences on the first day of April next following that
December; and

(b) ends immediately before the first day of the next
following April.

(3) This Schedule affects tax periods commencing on or after 1
April 1996.

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