Income Tax (Amendment) Regulations 2014
C
T
INCOME TAX (AMENDMENT)
REGULATIONS 2014
Income Tax (Amendment) Regulations
2014 Arrangement of Sections
to Page 3
C
T
INCOME TAX (AMENDMENT) REGULATIONS 2014
Arrangement of Sections
Regulation
1 Short title and commencement............................................................................... 5
2 Regulation 2 amended ........................................................................................... 5
3 New regulations 23, 24 and 25 inserted ................................................................. 6
4 Schedule amended ................................................................................................. 7
Income Tax (Amendment) Regulations 2014 Regulation 1
to Page 5
C
T
INCOME TAX (AMENDMENT) REGULATIONS 2014
INCOME TAX ACT 2007
IN EXERCISE of the powers conferred by section 93 of the Income Tax Act
2007, the Minister of Revenue and Customs, with the consent of Cabinet,
makes the following regulations -
1 Short title and commencement
(1) 'These Regulations may be cited as the Income Tax (Amendment)
Regulations 2014.
(2) These Regulations shall come into force on the same day as the Income Tax
(Amendment) (No. 2) Act 2013 comes into force.
(3) In these Regulations, the Income Tax Regulations 2008 as amended, shall be
referred to as the Principal Regulations.
2 Regulation 2 amended
Regulation 2 of the Principal Regulations is amended by inserting the following
definition in the correct alphabetical order -
““small business tax” means the small business tax imposed under section 8
of the Act;”.
Regulation 3 Income Tax (Amendment) Regulations 2014
Page 6 to
3 New regulations 23, 24 and 25 inserted
The Principal Regulations is amended by inserting he following new regulations 23,
24 and 25 after regulation 22 -
“23 Applications under section 8 of the Act
(1) An application under subsection 8(5) of the Act for section 5 of
the Act to apply to the applicant for a fiscal year shall be lodged
with the Chief Executive Officer by 31 March preceding the
commencement of the fiscal year or within such further time as
the Chief Executive Officer may allow.
(2) If an application under subsection 8(5) of the Act for a fiscal year
by a person is not lodged within the time specified in sub-
regulation (1) including any extension of time allowed under
sub-regulation (1), the person is subject to section 8 of the Act
for the year.
(3) An application under subsection 8(7) of the Act for section 8 of
the Act to apply to the applicant for a fiscal year shall be lodged
with the Chief Executive Officer by 31 March preceding the
commencement of the fiscal year or within such further time as
the Chief Executive Officer may allow.
(4) If an application under subsection 8(7) of the Act for a fiscal year
made by a person is not lodged within the time specified in sub-
regulation (3) including any extension of time allowed under
sub-regulation (3), the person is subject to section 5 of the Act
for the year.
24 Small business tax forms
(1) For the purposes of section 8 of the Act a small business tax
return to be lodged under section 68(2) of the Act shall be in
Form 12 in the Schedule and lodged in the manner prescribed in
regulations 23 and 24 of the Revenue Services Administration
Regulations 2003.
(2) The small business tax refund form required to be lodged with
the Chief Executive Officer under section 92(1) shall be in Form
13 in the Schedule.
(3) The application for the normal income tax to apply and not the
small business tax form required to be lodged with the Chief
Executive Officer under section 8(5) shall be in Form 14 in the
Schedule.
(4) The application for the small business tax to apply to an
individual who has previously been granted approval for the
normal income tax to apply form required to be lodged with the
Chief Executive Officer under section 8(7) shall be in Form 15 in
the Schedule.
Income Tax (Amendment) Regulations 2014 Regulation 4
to Page 7
25 Record-keeping
(1) A taxpayer subject to tax under section 8 of the Act shall keep
only the following records –
(a) a cash book recording daily sales, including credit sales;
and
(b) if the taxpayer employs employees, a salary and wages
register.
(2) Sub-regulation (1) applies despite anything in regulation 9 of the
Revenue Services Administration Regulations.”.
4 Schedule amended
The Principal Regulations are amended by inserting the following new forms 12, 13,
14 and 15 –
“
GOVERNMENT OF TONGA
Ministry of Revenue and Customs
INCOME TAX ACT 2007
Form 12
Income Tax Regulations 2008 (Regulation 24(1))
SMALL BUSINESS TAX RETURN FOR INDIVIDUALS
INSTRUCTIONS: You shall use this form if you are an individual in business and your annual gross turnover is
less than $100,000 and you have NOT been approved by the Chief Executive Officer to be subject to the
normal income tax or, if previously approved by the Chief Executive Officer, you have been granted approval
for the small business tax to apply to you. You cannot apply to have the small business tax apply to you within
3 years of the date of service of the notice granting you permission for the normal income tax to apply.
Note – Business does not include professional services such as medical, dental, legal, accounting, financial,
managerial, engineering, architectural, consulting or other similar services.
You shall lodge this return within 28 days of the end of the Quarter (that is lodged by 28
th
October, 28
th
January, 28
th
April, 28
th
July) together with payment of any small business tax, if your annual gross turnover is
more than $50,000.
Regulation 4 Income Tax (Amendment) Regulations 2014
Page 8 to
If it is $50,000 or less, the return and the tax due shall be lodged by the 31
st
October.
Small Business Tax Rates
ANNUAL GROSS TURNOVER SMALL BUSINESS TAX PAYABLE
$10,000 or less $100
$10,001-$30,000 $250
$30,001 - $50,000 $500
More than $50,000 2% of annual gross turnover
You should also complete a Form 10 for all other income including salary and wages, interest, land rent and
rental income. Use Form 13 Application for a refund of small business tax if you have paid too much small
business tax during the year. You can only apply for a refund within 3 years after the date on which the small
business tax was paid.
Year of Income:
Quarter (if annual gross income more than $50,000) September December March June (circle applicable one)
Tax Identification Number (TIN)
(if you do not have a TIN you will need to
complete a FORM 3 – Individual
application for TIN)
Name
Date of birth Place of Birth
Status Married Single Widow Widower
Residential Address in Tonga
Address where notices are to be sent
Phone/fax Numbers and email address
Phone
Fax
Email
Principal Business/
Business Trading name and address of Main Business
Income Tax (Amendment) Regulations 2014 Regulation 4
to Page 9
Name
Address
Is this your first small business return? Yes No
Are you a resident of Tonga for Tax purposes? Yes No
Did you sell goods or services using the internet? Yes No
ANNUAL GROSS TURNOVER
1. Enter details of your Annual or Quarterly gross turnover $
Provide details of how you have calculated your annual gross turnover details
Cash Book yes/no
2. Tax Paid previous quarter(s)
3. Annual Tax Due or tax due this quarter $
4. TOTAL DUE - PAY THIS AMOUNT $
Declaration
I declare that the information I have given is true and correct
Signature ………………………………………… Date
Print name
TO: MINISTRY OF REVENUE AND CUSTOMS, Small Business Division, PO Box 7, Nukualofa Tonga
Amount of Small Business Tax payment: $
GOVERNMENT OF TONGA
Ministry of Revenue and Customs
INCOME ACT 2007
Regulation 4 Income Tax (Amendment) Regulations 2014
Page 10 to
Form 13
Income Tax Regulations 2008 (Regulation 24(2))
REFUND OF SMALL BUSINESS TAX
NOTE: You should complete a Form 9 for a refund of all other income including salary and wages, interest,
land rent and rental income.
Year of Income/Quarter:
Tax Identification Number (TIN)
(if you do not have a TIN you will need to
complete a FORM 3 – Individual –application
for TIN)
Name
Date of birth
Address in Tonga
Principal Business
You shall send this summary to us within three (3) years after the date on which the tax was paid. You
should use this form if you overpaid your small business tax.
Small Business Tax Rates
ANNUAL GROSS TURNOVER SMALL BUSINESS TAX PAYABLE
$10,000 or less $100
$10,001- $30,000 $250
$30,001 - $50,000 $500
More than $50,000 2% of annual gross turnover
Income Tax (Amendment) Regulations 2014 Regulation 4
to Page 11
GOVERNMENT OF TONGA
Ministry of Revenue and Customs
INCOME TAX ACT 2007
Form 14
Income Tax Regulations 2008 (Regulation 24(3))
APPLICATION FOR THE NORMAL INCOME TAX TO APPLY AND NOT THE
SMALL BUSINESS TAX FORM
This form is to be used by those INDIVIDUALS who are applying for the normal income
tax to apply to them and not the small business tax.
Under the small business tax provisions the small business tax applies to an individual whose
annual gross turnover is less than $100,000 unless approval has been given by the Chief Executive
Officer to that individual to remain in the normal income tax system. You shall lodge this
application by the 31
st
March preceding the commencement of the fiscal year or within such
further time as the Chief Executive Officer may allow.
Calculate your individual tax summary $ $
1
Annual Gross Turnover
2
SBTax due
3
SBTax paid for year or quarter(s)
4 SBTAX REFUND
Declaration
I declare that the information I have given is true and correct.
Signature…………………………………………Date…...…./…..…./……….…
Regulation 4 Income Tax (Amendment) Regulations 2014
Page 12 to
You will only be granted approval to remain in the normal income tax system if you have been/are
keeping proper records and have a good record of lodging your tax returns. Proper records for a
small business taxpayer are:
Cash book recording daily sales (including credit sales) and purchases
Salary and wage register (if employing staff)
Quarterly inventory records
Records of expenditure
You shall remain in the normal income tax system if your business consists of professional services
such as medical, dental, legal, accounting, financial, managerial, engineering, architectural,
consulting or other similar services.
Approval to remain in the normal tax system remains in force until the Chief Executive Officer, on
application in writing by the individual using Form 15, permits the individual to be subject to the
small business tax. An application to be subject to small business tax where an individual has been
previously granted approval to remain in the normal tax system cannot be made within 3 years of
the date of service of the notice granting the person permission to remain in the normal income
tax system.
Please:
complete the form;
attached herewith:
1. copies of your cash book recording daily sales (including credit sales) and purchases
2. a salary and wage register;
3. quarterly inventory records; and
4. records of expenditures.
Should any of the above not be provided (or their equivalent to the satisfaction of the Chief
Executive Officer) your application will not be approved and you will be required to pay the
small business tax
YOUR FULL NAME:
TRADING NAME (if any): ___________________________________________________________
TIN (Taxpayer Identification Number) if issued:
(before this application can be granted you shall have a TIN. Please contact us to obtain one – you
will need to complete Form 3 – Individual Application for TIN available from our office or from our
website www.revenue.gov.to)
YOUR ADDRESS:
Specific Location/Street Address:
Income Tax (Amendment) Regulations 2014 Regulation 4
to Page 13
Postal Address (if different):
Phone Number: Fax Number:
Email Address: _________________________________________________________
Date of first year of operation.____________________________________________________
YOUR COMPLIANCE HISTORY WITH MINISTRY OF REVENUE AND CUSTOMS
1. Income Tax (IT) Details:
Last Income Tax Lodged Financial Year/s
(Financial Year) :__________________not yet lodged : ___________________
Income Tax Arrear
Financial Year/s :__________________
Amount :__________________
Penalties :__________________
Total :___________________
2. Consumption Tax (CT) Details
Last CT lodged :__________________ Month/s
(Month) not yet lodged : ________________
CT Arrear
CT Period :__________________
Amount :__________________
Penalties :___________________
Total :___________________
3. PAYE Details
Last PAYE lodged :___________________ Month/s
(month) not yet lodged :___________________
Regulation 4 Income Tax (Amendment) Regulations 2014
Page 14 to
PAYE Arrear
PAYE Period :___________________
Amount :___________________
Penalties :___________________
Total :___________________
4. PAYE Reconciliation Details
Last PAYE Reconciliation lodged :_______ Financial Year (s)
(Financial Year) not yet lodged : ________________
5. Customs Details
1). Import Duty Arrear :_____________________
2). Excise Duty Arrear :_____________________
6. Record Keeping details
1. cash book recording daily sales (including credit sales) and purchases –
YES/NO
2. a salary and wage register (if employing staff) -
YES/NO;
3. quarterly inventory records - YES/NO
and
4. records of expenditures - YES/NO
DECLARATION:
I declare the above information is true and complete.
Signature:
Name: Date: ____ / ____ / ____
Income Tax (Amendment) Regulations 2014 Regulation 4
to Page 15
Position: _____________________________________
FOR OFFICIAL USE ONLY
Date of Receipt of Application: ____ / ____ / ____ Receiving Officer:
Recommendation (including any Conditions that should be applied to issuing the Notice):
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
Recommending Officer: _______________________Date of Recommendation: ____ / ____ / ____
Approving Officer: CHIEF EXECUTIVE OFFICER
Date :___________________________
Date of Issue of Notice: ______/_________/_________
GOVERNMENT OF TONGA
Ministry of Revenue and Customs
INCOME TAX ACT 2007
Form 15
Income Tax Regulations 2008 (Regulation 24(4))
Regulation 4 Income Tax (Amendment) Regulations 2014
Page 16 to
APPLICATION FOR THE SMALL BUSINESS TAX TO APPLY TO AN
INDIVIDUAL WHO HAS PREVIOUSLY BEEN GRANTED APPROVAL FOR THE
NORMAL INCOME TAX TO APPLY FORM
This form is to be used by those INDIVIDUALS who are applying for the small business
tax to apply to them where they have previously been granted approval for the normal
income tax to apply to them
Under the small business tax provisions the small business tax applies to an individual whose
annual gross turnover is less than $100,000 unless approval has been given by the Chief Executive
Officer to that individual to remain in the normal income tax system. You shall lodge this
application by the 31
st
March preceding the commencement of the fiscal year or within such
further time as the Chief Executive Officer may allow.
You may, but not within 3 years of the date of service of the notice granting you permission to
remain in the normal income tax system, apply to have the small business tax apply to you.
You shall remain in the normal income tax system if your business consists of professional services
such as medical, dental, legal, accounting, financial, managerial, engineering, architectural,
consulting or other similar services.
Please:
complete the form;
attached your notice of approval to remain in the normal income tax system
YOUR FULL NAME:
TRADING NAME (if any): ___________________________________________________________
TIN (Taxpayer Identification Number):
YOUR ADDRESS:
Specific Location/Street Address:
Postal Address (if different):
Phone Number: Fax Number:
Email Address: _________________________________________________________
Date of first year of operation.
YOUR COMPLIANCE HISTORY WITH MINISTRY OF REVENUE AND CUSTOMS
Income Tax (Amendment) Regulations 2014 Regulation 4
to Page 17
1. Income Tax (IT) Details:
Last Income Tax Lodged Financial Year/s
(Financial Year) :__________________not yet lodged : ___________________
Income Tax Arrear
Financial Year/s :__________________
Amount : _________________
Penalties :_________________
Total :___________________
2. Consumption Tax (CT) Details
Last CT lodged :__________________ Month/s
(Month) not yet lodged : __________________
CT Arrear
CT Period :__________________
Amount :__________________
Penalties :___________________
Total :___________________
3. PAYE Details
Last PAYE lodged :___________________ Month/s
(month) not yet lodged :___________________
PAYE Arrear
PAYE Period :___________________
Amount :___________________
Penalties :___________________
Total :___________________
4. PAYE Reconciliation Details
Last PAYE Reconciliation lodged :_______ Financial Year (s)
(Financial Year) not yet lodged :__________________
5. Customs Details
Regulation 4 Income Tax (Amendment) Regulations 2014
Page 18 to
1). Import Duty Arrear :_____________________
2). Excise Duty Arrear :_____________________
6. Annual Gross Turnover
Please provide your Annual Gross Turnover for the past 3 years
Year 1 $
Year 2 $
Year 3 $
DECLARATION:
I declare the above information is true and complete.
Signature:
Name: Date: ____ / ____ / ____
Position: _____________________________________
FOR OFFICIAL USE ONLY
Date of Receipt of Application: ____ / ____ / ____ Receiving Officer:
Recommendation (including any Conditions that should be applied to issuing the Notice):
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
Income Tax (Amendment) Regulations 2014 Regulation 4
to Page 19
Recommending Officer: _____________________________Date of Recommendation: ____ /
____ / ____
Approving Officer: CHIEF EXECUTIVE OFFICER
Date :___________________________
Date of Issue of Notice: ______/_________/_________
Made in Nuku’alofa this 1
st
day of August 2014.
Hon. Siosifa T Tu’utafaiva
Minister for Revenue and Customs
