Regardless of the campaign tax rhetoric in the U.S. presidential campaign, Virgin Islands small businesses got a major tax break in September when the standard gross receipt tax exemptions were almost doubled.
Taxpayers with gross receipts of less than $225,000 are now eligible for the monthly standard gross receipts exemption, which has been raised from $5,000 to $9,000 per month, according to a press release from BIR.
The law providing tax relief for small business taxpayers in the area of gross receipts tax, Act No. 7015, was signed into law by Governor John P. deJongh on September 17.
The new law will affect gross receipts returns beginning with the September 2008 monthly gross receipts return, according to BIR Director Thomas. The annual gross receipts returns, which are due on January 30, 2009, will also be affected, beginning with the month of September 2008, according to BIR.
Taxpayers who have gross receipts of less than $150,000 will be eligible for a $5,000 per month exemption through the month of August. The August returns were due on September 230.
Beginning September 1, 2008, taxpayers with gross receipts that are less than $225,000 will be eligible for the $9,000 per month exemption, according to the BIR release. The September gross receipts tax return is due October 30, 2008.
“There is no retroactive effect of this amendment; therefore no taxpayer will be eligible for the $9,000 per month exemption prior to the September 2008 return,” BIR officials cautioned. “Tax payers who may have erroneously taken the exemption prior to the September 2008 return will receive a bill for the additional tax, penalties and interest owed.”
Forms are being updated, but in the interim, taxpayers are asked to use the existing forms and include the correct exemption amount, according to the BIR release.