The Telecommunications Ordinance imposes taxes on the provision of all telecommunication and Network Services at a rate of 12%. These Services include but are not limited to mobile services, fixed line services, internet services, etc
A licence issued by the Telecommunications Commission is the sole qualification for registration and registration for Communications Tax is mandatory and can be done through the Registration Form provided for ease of registration by the Revenue Department.
Communications Tax payments are due on or before the 21st of each month for the month prior. A tax remittance form is collected from the Revenue Department for each tax period due to be paid on or before the 21st of each month for the month prior. Failure to complete remittance and payment by the 21st will immediately result in a penalty of 10% of the tax overdue on a monthly basis for as long as the taxes remain outstanding.
Businesses are required to maintain proper books and records and are subject to period audits as taxes remitted are on a self-assessed basis.
Registrants are also required to give notice of changes to the Revenue Department including:
- Change of location
- Change on any details on the initial application and registration forms
- Temporary closure
- Change of ownership
More details can be obtained from Communications Tax Brochure or contacting the Taxpayer Services of the Revenue Department.