Every employer who has made payments to any person in respect of Employment or Pension should complete the return. A Form TD5 (PDF, 80 KB) should also be completed in respect of every director whether payments were made or not.
The Return is to be completed for all persons who were, during any calendar year ended 31st December, employed by you or in receipt of pensions from you, except those who died or left your employ during the year for and whom a Form TD4 has been submitted. If no form TD4 was submitted, give details on Form TD5 (PDF, 80 KB).
A Form TD5 (PDF, 80 KB) must also be completed in respect of payments made to Board Members and Directors.
The Return must be completed in Alphabetical Order.
You should include all amounts paid or credited to the account of an employee whether earned within or outside the Commonwealth of Dominica during the calendar year in question.
The value of benefits or allowances to employees etc. must be shown as separate items on the form TD5. This value is to be ascertained as follows:
- Travelling Allowance: The amount of allowance paid in the year
- Entertainment Allowance: The amount of allowance paid in the year
- Housing provided by employer: (subject to a limit of $50,000 – revised from January 1, 1999)
- If property is owned by the employer, the amount is 6% of the current market value
- If property is not owned by the employer, the annual rental paid by the employer, less any rent paid by the employee in respect of that property
- Utilities paid by employer: The amount paid in respect of electricity, water, cable television and telephone charges and other out-goings of a domestic nature
- Motor Vehicle provided for the personal use of employee: Section 35(5) of the Income Tax Act provides the method for calculating the value of the benefit from January 1999. The benefit is calculated on the value of the Motor Vehicle for tax purposes at the beginning of the year
- where the value is $20,000 or less, the benefit is $2,000;
- where the value is between $20,000 and $50,000, the benefit is $4,000;
- where the value is between $50,000 and $100,000, the benefit is $7,000;
- where the value exceeds $100,000, the benefit is $10,000; and
- where the vehicle is only made available for part of the year, then the benefit is apportioned accordingly
- Leave passages: The cost of any passage granted to employee where the previous leave passage was less than four years ago. NB: Tax under PAYE should be deducted from any money paid in lieu of the entitlement to a leave passage
- Interest Free Loans to employees or directors: A rate of 10% per annum of the amount of the loan granted is taxable as a benefit
- Other benefits or advantages: The cost to the employer of providing any other benefits or advantages
Employment Income includes:
- Wages, salary, leave pay, fee (including a director's fee), commission, bonus or gratuity
- Any travelling, entertainment or other allowance
The first and second copy of the Form TD5 (PDF, 80 KB) should be given to the employee, the third copy should be delivered to the Inland Revenue Division, and the fourth copy retained for your records. The Return should be completed and sent to the Inland Revenue Division on or before January 31st of the year following to the year in question.