FAQs-Employment Incentive Program - Department of Inland Revenue
1. Who is eligible to participate in the Employee Incentive Programme (EIP)?
Answer: VAT registered businesses, who are tax compliant, are eligible to participate in the programme to hire up to 10 additional new employees and receive up to $400 a week in tax credits per employee.
2. Must I be a VAT registrant to benefit from this programme?
Answer: Yes, companies wishing to apply must be VAT registrants.
3. How do I apply for the Employment Incentive programme (EIP)?
Answer: To apply for the EIP companies must visit www.atlas.revenue.gov.bs and complete the participation form and submit the requested documents.
4. What documents do you need to apply?
Answer: Documents required to register are:
- Completed EIP “participation form” online under your account at www.atlas.revenue.gov.bs
- NIB C-10 form with as of June 30, 2021
- Confirmation of NIB payment for June 30, 21 salaries (with receipt for payment)
- Confirmation of salary disbursement for June 30, 2021 salaries (banking records)
Answer: Documents required to apply for monthly tax credits are:
- Completed EIP “tax credit form” online under your account at www.atlas.revenue.gov.bs
- NIB C-10 form for month(s) credits are being requested
- Confirmation of NIB payment for month(s) credits are being requested (with receipt(s) for payment)
- Confirmation of salary disbursement for month(s) credits are being requested (banking records)
5. I have several registered businesses, am I able to apply for each of them?
Answer: If you have more than one VAT registered business you may apply for each of them separately in the atlas portal at www.atlas.revenue.gov.bs, provided that each business has their own employees.
6. Is there a deadline to apply for participation?
Answer: The deadline to apply for participation is Dec 31, 2021.
7. Is there a deadline to apply for monthly credits?
Answer: Once an applicant is approved for participation in the programme, an application can be made to apply for monthly credits until September 30, 2022.
8. How often can I apply for a tax credit?
Answer: You can apply for your credits on a monthly basis.
9. Does my business have to reapply every time we hire an additional employee?
Answer: A business will only need to apply for participation once. Once approval for participation is granted application for the tax credits should be made monthly for up to any 10 new employees hired into the business after June 30, 2021.
Additionally, provide a list of the engaged employees for whom tax credits are being applied for stating:
a) Employee names,
b) Employee addresses,
c) Employee job titles,
d) National Insurance numbers,
e) Employment commencement date
f) Basic pay rates for a 40-hour week. Basic pay is not to include any bonus, tip, gratuity or commissions and severance pay
g) Any other information relating to proof of engagement that the comptroller might deem necessary
10. How do we get the VAT credit for the employees we’ve hired?
Answer: Approved participants must apply for the tax credits under the programme on a monthly basis within the required period of time from July 12, 2021 to September 30,2022.
11. Will I have to include any information about the Employee Incentive Programme on my VAT return?
Answer: No. Participants will be required to file their VAT returns in the normal manner. No information with respect to tax credits granted under the EIP needs to be included.
12. What happens if my application is not approved?
Answer: If your application is not approved, you will get an email notification stating the reason(s) for such within 7 days of submission. Once the stated reason(s) is/are resolved, you can resubmit your request for consideration.
13. Who in the business can apply to participate in the programme?
Answer: The application for participation requires the business owner, CEO or CFO to declare that all statements and representations made in the application are true and correct.
14. Does this programme cover part time employees?
Answer: No, the newly hired employees are required to be engaged on a full time basis, working a minimum of 40 hours a week.
15. Can the EIP credit be used towards any tax?
Answer: Yes. The EIP credit may be used to offset business licence fees, Value Added Tax or real property tax liability.
16. If my business generates mainly zero rated activity, can the EIP credit be applied to Value Added Tax (VAT)?
Answer: The EIP credit is intended to offset tax liability. Therefore, if the business generates mainly zero rated activity, it means that the VAT returns are generally in a credit position. Given that there would be no tax liability, the EIP credit could not be applied to a VAT tax period as there will be no debt to be offset. But there will be an eventual business licence tax liability or other tax liability arising against which it can be used.