New Tax Laws from 1 January 2020

The money that the Government uses to manage our country, provide education, health facilities, to fund police and the justice system, to build roads and infrastructure, comes partly from the taxes and other revenue collected by the Department of Customs and Inland Revenue.

The Tax Administration Act comes into effect as of 1 January 2020. It makes changes that apply to Value Added Tax, Excise Tax, Rent Tax, Business Licencing and Customs Legislation.

The changes will be of particular interest to the business community and State-Owned Enterprises. The changes will help to:

  • Harmonize the administrative and procedural rules that apply to our tax laws.
  • Enshrine the fundamental rights and obligations of taxpayers
  • Modernise Inland Revenue and improve taxpayer compliance.

The important changes for taxpayers to note:

  1. Tax Identification Numbers - Businesses are required to have and use a Tax Identification Number (TIN)
  2. Records - Record keeping obligations for business taxpayers are made clear
  3. Forms - There will be some new forms and some forms will be revised
  4. Modernizing - Electronic filing and paying is facilitated in the new laws
  5. Penalties and Offences - The Act introduces or revises penalties and offences, including a late filing penalty.
  6. DCIR Powers - DCIR’s powers to recover debt and collect information are widened
  7. Transparency - Increased transparency in the way tax is administered
  8. Tax Agents - Tax Agents will need to be registered (from 1 April 2020)
  9. International commitments - There will be increased cooperation with other countries tax administration