Payroll Tax Amendment Act 2000
PAYROLL TAX AMENDMENT ACT 2000

1

BERMUDA
2000 : 13

PAYROLL TAX AMENDMENT ACT 2000

[Date of Assent 29 March 2000]

[Operative Date 1 April 2000]

WHEREAS it is expedient to amend the Payroll Tax Act 1995:

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:

Citation
1 This Act which amends the Payroll Tax Act 1995 (hereinafter
referred to as "the principal Act") may be cited as the Payroll Tax
Amendment Act 2000.

Amends section 2 of principal Act
2 Section 2 of the principal Act is amended —

(a) by deleting the definition of the expressions "option A"
and "option B"; and

(b) in the definition of "payroll", by deleting paragraph (a)(i)
and substituting the following—

"(i) the remuneration of the employer's employees;";
and

PAYROLL TAX AMENDMENT ACT 2000

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(c) in the definition of the expression "remuneration", by
deleting paragraph (a).

Amends section 3 of principal Act
3 Section 3 of the principal Act is amended by deleting subsection
(3).

Amends section 9 of principal Act
4 Section 9 of the principal Act is amended—

(a) by inserting at the end of subsection (1) the following—

"; and different rates may be prescribed in respect of
employees in the different special situations specified in
subsection (2)"; and

(b) by deleting subsection (3).

Amends section 10 of principal Act
5 Section 10 of the principal Act is amended by inserting
immediately after the words "An employer" the words ",other than an
employer which is an exempt undertaking,".

Repeals and replaces section 15, 16 and 17 of principal Act
6 Section 15, 16 and 17 of the principal Act are repealed and
replaced by the following—

"Exempt undertakings
15 (1) Subject to subsection (2), where an employer is an
exempt undertaking, that exempt undertaking is chargeable to
tax with reference to the actual remuneration paid by it to any
one of its employees for services performed wholly or mainly in
Bermuda during a tax period.

(2) Subsection (1) does not apply to actual
remuneration paid by an exempt undertaking to any one of its
employees which exceeds $250,000 per annum whether or not
such remuneration is paid in respect of one or more tax periods.

(3) For the purposes of this section, this Act has effect
in relation to an exempt undertaking as if it were not an exempt
undertaking.".

PAYROLL TAX AMENDMENT ACT 2000

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Amends section 18 of principal Act
7 Section 18 of the principal Act is amended in subsection (1) by
deleting all the words beginning with "; but this subsection" and ending
with "exempt undertaking".

Amends section 19 of principal Act
8 Section 19 of the principal Act is amended in subsection (1), by
deleting paragraph (c).

Inserts new section 20A in principal Act
9 The principal Act is amended by inserting next after section 20
the following new section—

"Relief from payroll tax
20A (1) This section applies to an employer—

(a) referred to in section 3 of this Act as read with
section 3 of the Rates Act; and

(b) referred to in section 10 of this Act as read with
section 5 Class A of the Rates Act.

(2) For the purposes of calculating the amount of the
payroll tax chargeable to an employer referred to in this section,
and for no other purpose, the employer is entitled to treat the
total remuneration paid during a tax period as if the total
remuneration were reduced by $600 (special relief) in respect of
each employee who is on the payroll at the end of the tax period
and who has worked for the employer for a minimum of 180
hours during the tax period; so, however, that the amount of
payroll tax payable by the employer pursuant to this section
shall not be less than the amount which is payable by an
employer under section 10 of this Act as read with section 5
Class C of the Rates Act.

(3) In this section "the Rates Act" means the Payroll
Tax Rates Act 1995.".

Amends principal Act
10 The principal Act is amended by deleting the Second Schedule.

Commencement
11 This Act comes into operation on 1 April 2000 ("the
commencement day").