Treasury,
Tax & Pensions

Employer Tax Requirements

Payment On Account of Tax (POAT) should be applied by employers to their employees' remuneration

POAT is not tax in itself, but merely a payment on account.  When an individual submits their tax return, any excess POAT over their actual liability will be refunded.  If there is further tax to pay over and above the POAT, the individual will be issued with a demand

Non-resident employers and employees are also within the scope of POAT

Employees working in connection with oil exploration and exploitation activities in a designated area are also within the scope of POAT

Non-resident Employees

A flat rate POAT deduction should be made from this category's remuneration.  The employee can either accept this as their final liability to Falklands Tax or alternatively submit a tax return to receive an assessment.

Tax Free Salaries

Where an employer pays the POAT on behalf of the employee the amounts paid to the employee need to be grossed up for tax purposes so that the actual amount received by the employee is net of tax.

For examples of grossing up scenarios you can download 2013_Grossing_up_all_scenarios.pdf

Payment and Returns

The employer must submit a POAT return for each calendar month by the 14th of the following month together with payment for that month's POAT.

Failure to submit the form within the time period incurs an automatic £50 penalty for each return that is late.

Failure to pay the POAT due within the deadline can render the employer liable to a penalty equal to the amount of the POAT due and interest charges.

An annual return of POAT is also required and this in addition requires details of taxable benefits-in-kind to be entered onto a separate sheet. The annual returns have to be submitted by the 2nd of February in the following year to which the income relates.

The following guides and forms can be downloaded which provide further details on employer's requirements:

2017 Employers Guide

2017 Employer Workbook Electronic Completion

2017 Employers Guide OIL

2017 Employer Workbook Electronic Completion OIL

RPC Rates 2016-2017

BIK Guide 2013 onwards upd 2017

For further information on Employer Tax Requirements please go to 'Employers'

If you have any enquiries concerning the rules and administration of Retirement Pension Contributions (RPCs) please contact :

Pensions Office

FIG Treasury

Thatcher Drive

Stanley

Falkland Islands

FIQQ 1ZZ

Tel       + 500 28415

Fax      + 500 27144

To get in touch by email, please click on this link

Tax payments can be received at:

FIG Taxation Office (open 0900-1200 Mon-Fri) - +500 28470

FIG Treasury Cashier (open 0900-1200 Mon-Fri) - +500 28411

Falkland Islands branch of Standard Chartered Bank

Paying by Cheque

Please make the cheque payable to Falkland Islands Government and send to:

FIG Taxation Office

Secretariat, Thatcher Drive

Stanley

Falkland Islands

Paying by Remitting Money to the Falkland Islands by SWIFT

1) Please ensure all banks involved in the transfer are instructed to debit charges from the remitter.

The Falkland Islands branch of SCB do not have any charges from incoming money but payments going through London do have a £35 charge from the London end.

The bank charges are out of our control and it is the taxpayer's responsibility to ensure all charges are paid by them so that the actual amount due is paid to the Falkland Islands Government Taxation Office.

For any amounts received short of the amount due, the balance will be treated as an amount outstanding with payment being pursued and any relevant interest and penalties applied.

2) It would be useful if you could please notify the Taxation Office, in advance of the transfer, of the amount being remitted and details of what it is for or send the relevant remittance advice to avoid payments being misallocated. Information and remittances can be emailed by clicking the link

Download the SCB Customer Guidance Note for further details on how to make payment by this method

Quick Links: Value Added Tax (VAT)

The Falkland Islands is a self-governing overseas territory of the United Kingdom.

The European Community defines the Falkland Islands as being an "Overseas Country or Territory" (OCT) of a Member Country and not part of the European Customs Union. It is however entitled to Community import and export preferences, whilst at the same time retaining the freedom to impose its own import restrictions, duties and taxes.

The only goods liable to duties on importation to the Falkland Islands at the current time are alcoholic beverages and tobacco products.

There is no provision in respect of the imposition of add valorem duties (VAT).

If you require any further clarification with regard to this matter please contact:

FIG Customs and Immigration Department
Byron House
3 H Jones Road
Stanley
Falkland Islands, FIQQ 1ZZ

Tel + 500 27340
Fax + 500 27342

To get in touch by email, please click on this link

Quick Links: Tax Calendar

To assist with submission and payment deadlines a tax calendar has been produced.

Download the 2017 Tax Calendar

 

Quick Links: Medical Services Tax (MST)

In order to keep administration to a minimum, the collection of MST is through the same systems as Income Tax

 

Tax Year 2017:

The threshold is £60,000 for employees and self employed before the MST rates apply.

(this may be apportioned depending on tax residency)

MST Rates: employee 1 %, employer 1.5 %, self-employed 1.5 %

 

Tax Year 2016:

The threshold is £60,000 for employees and self employed before the MST rates apply.

(this may be apportioned depending on tax residency)

MST Rates: employee 1 %, employer 1.5 %, self-employed 1.5 %

 

(During the last Budget Process, it was agreed to reduce the Medical Services Tax rate to 0%, with effect from the 1st January 2018)

 

Paying MST is not an entitlement to healthcare, there are separate rules regarding healthcare entitlements