Employee(s) Renumeration and

Tax Payable





Employee renumeration and Tax Payable concerns the classification of your company as a Class one, or a Class two business within the Virgin Islands. 

Class 1 businesses are classified by the following three criteria: I) An annual payroll not exceeding $150,000.00 per financial year, ii)  An annual turnover that does not exceed $300,000.00 and iii) A quantity of employees and deemed employees that does not exceed 7 total persons. If your company has any of these three classification it is a Class 1 business and will be taxed according to the Class 1 business tax bracket.

If a business exceeds all three criteria listed for the class 1 business, it is then classified as a Class two business and taxed according to the Class 2 business tax bracket.

For example, if a business employs 8 persons but has an annual payroll that does not exceed $150,000.00 per financial year, the business is considered a class 2 business and taxed in the class two business bracket. If also, a business has 6 employees and has an annual turnover of $400,000.00, the business is also classified as a class 2 business because the annual turnover exceeds the maximum Class 1 classification,  (although the number of employees has not exceeded it's maximum.) 

Using the ViHRM system the tax to be paid by your business is automatically calculated when the form is generated by the company administration. Ensure that your business classification is correct within the system for correct calculation of tax, here, when establishing it under the Social Security, NHI and Tax Numbers section of the Payroll Management tab. 

The selection page for generating the above filled tax form is the following: 










Once on the Employee Remuneration page, under the reports section of payroll management, use the drop boxes to fill the Select Employee, as well as, the Select year drop boxes and then click the blue "Go" button to generate the requested form. The Employees Remuneration and Tax Payable form will be generated and can be printed from the generated page. Review the form for accuracy, or no errors, and then print and submit the form to the Inland Revenue Department by the relevant date annually. 



For further information on taxes visit the official bvi.gov.vg website.