Effective 1 April 2020, new hire relief is granted to all employers/taxpayers having an annual remuneration of BMD 500,000 up to BMD 1 million.
Qualifying employers include those:
- Engaging new hires from 1 April 2020 up to 31 March 2024; and
- Increasing the number of full-time employees from those reported in the baseline period of January 2020 up to March 2020.
For employers not in operation prior to 31 March 2020, the relief is available provided they hire one or more full-time persons after 1 April 2020 and have an annual remuneration of BMD 500,000 or BMD 125,000 per quarter. Employees working more than 15 hours a week are referred as full-time persons.
Taxpayers eligible for the relief are required to pay the employer portion of 0% on remuneration paid to qualifying employees for the tax periods beginning on or after 1 April 2020 and ending up to 31 March 2024. Submission of false returns, failure to keep records, or evasion of tax payment will be subject to fines up to BMD 500,000.
The New Hire Relief 2020 is in supplement to New Hire Relief 2018, which was extended to all exempted companies and employers with a gross annual remuneration of BMD 1 million or more.