Who must file
Companies and other legal persons, and individuals with taxable income, file an annual income tax return. A small taxpayer with turnover under $3,000,000 pays presumptive tax of 4% of turnover instead and files a presumptive return (Revenue Code s.200 and s.903).
Tax year and deadline
The income tax return and payment are due by the last day of the third month after the tax year ends, which is 31 March for calendar-year taxpayers (Revenue Code s.902). The presumptive return goes in with the last quarterly advance payment of the year (s.903).
Filing step by step
- File and pay online on the LRA's LITAS portal, or at an LRA office.
- An electronic return or payment is on time if made by 11.59 pm on the due date; any other filing must reach the LRA by 5.00 pm (Revenue Code s.50(b), as amended in December 2024).
Penalties for filing or paying late
A late return under the Revenue Code costs 5% of the tax shown for the first month or part of it, plus a further 5% a month on the tax plus the penalty so far, up to 50% in all (s.51(a)). If an income tax return is still missing six months after the due date (one month for other returns), a failure-to-file penalty of the same size is added, and the Commissioner General may assess a flat penalty of up to $300,000 if no return is filed. A late nil return carries a flat penalty set by regulation of at most US$150,000. Late payment costs 5% of the tax shown for the first month, plus 5% a further month on the balance, up to 25% (s.52(a)), and 0.5% a month on the correct tax due, up to 50% (s.52(b)). Willful failure to file or pay, on conviction, doubles these penalties and can bring up to five years in prison.