Tax - Deductions - All

There are a number of transactions that qualify as tax deductions that can be offset against the amount of earnings in Taxable Income.  

These transactions include:

- Donations to approved Charitable and other organizations

- Attendance at Conventions or Trade Missions 

- Annual Bonus (subject to limit)

- Pension payments (subject to limit)

- Professional Fees and Subscriptions

For definitive advice consult your taxation practitioner.  We offer the following information as a guideline only:

Donations to Charitable and other organizations.

The Income Tax Act in Section 15 allows the deduction of a limited amount paid in terms of donations to approved charities and organizations.

The type of donation allowed are:

(a) Donations approved by the Minister responsible for Health to the State or fund for equipping, constructing, maintaining, and stocking hospitals operated by the State, a local authority, or a religious organization.

(b) Donations for research and development to a research institution approved by the Minister responsible for higher or tertiary education.

(c) Donations approved by the Minister responsible for education to the State or a fund for equipping, constructing, maintaining, and stocking schools operated by the State, a local authority, or a religious organization

For further information about how to process Charitable donations see the heading 'Deductible - Amounts' under this link.

Attendance at Conventions or Trade Missions 

A deduction is allowed for any expenditure not exceeding a specified amount for attending not more than one convention or trade mission in any one year of assessment.

Annual Bonus 

A portion of any Annual Bonus is free from taxation up to a maximum limit that is set by the Minister of Finance in the Annual Budget.  This limit has to be setup in the payroll settings and is processed using an Annual Bonus Transaction Code set up for the purpose.  See this link for information on how to setup and process an Annual Bonus.

Pension payments

Pension payments made to a registered pension scheme are tax deductible up to a specified maximum amount that is announced each year in the Ministry of Finances' annual budget. See the heading 'Pension' under this link for further information on the Pension Deduction and how to set it up in the payroll.

Professional Fees and Subscriptions