Turks and Caicos: Domestic Taxation
This page was last updated on 20 Sept 2018.
There have been no taxes in the Turks & Caicos Islands other than import duties (at varying rates), stamp duty on transfers of property and some official documents, a probate duty at 2% of assets up to a maximum of $550, some travel-related taxes, and business licence fees for individuals who undertake professional or business activities.
The government has assured that there are no plans to introduce an income tax, despite the emergence of a substantial revenue shortfall following the financial crisis. Instead, the interim government plans to plug the fiscal gap by introducing a value added tax (probably at 10%) from 2013. However, both major political parties votes in February 2013, to repeal the Value Added Tax Act. Other initiatives announced in the 2011-12 Budget include the introduction of an immediate 4% Customs Processing Fee, to be levied on all imported goods and importers; and, from 1 September 2011: a new carbon tax on electricity generators; a water sales tax on commercial customers and large residential customers; a 10% bank tax on non-interest bearing services provided by banks (replacing money transfer fees and stamp duty); and a 2.5% insurance tax on gross premiums for general insurance (excluding life and health premiums).
National insurance contributions are paid by both the employer and the employee. However, it is the employer's responsibility to deduct or recover national insurance contributions from the employee's earnings and send the total contributions on to the National Insurance Board. Employer and employee pay 6% for salaries up to US$7,800 per month. A minimum payment of US$50 applies in all cases. Self-employed individuals either pay US$250 per month on non-disclosed income levels, or between US$50 and US$150 for disclosed income levels. Pensioners are required to contribute 2.5% on retirement benefits exceeding US$2,000 per month.