What you need to know about Financial Services Tax (FST)
Effective 1 April 2017, Financial Services Tax is a tax charged on the following financial services providers:
- Banks, 0.005% on its consolidated gross assets as at the end of a tax period;
- Domestic insurers, 2.5% of gross premiums written in a tax period, excluding premiums relating solely to health insurance and
- Money Service Business, 1% on aggregated outgoing money transmission volume in a tax period.
Tax period is defined as each and every period of three calendar months commencing with the months of April, May and June 2017.
Every financial services provider chargeable to financial service tax shall within 30 days after each tax period submit to the Office of the Tax Commissioner a return specifying the consolidated gross assets or gross premiums or aggregated outgoing money volume and pay the financial services tax due in respect of that tax period.
Financial service providers are also required to register with the Office of the Tax Commissioner within:
- Thirty days after the coming into operation of the Financial Services Tax Act; or
- Thirty days after becoming a financial services provider (if later)
A financial services provider who fails without reasonable excuse, to comply with registration is guilty of an offence and liable, on conviction by a court of summary jurisdiction to a fine not exceeding $1,000.