This Publication contains important Tax update for Jamaica

1. TAXATION
BULLETIN
JAMAICA TAX UPDATE 2014
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2. CONTENTS
1 – Introduction of Employment Tax Credit (ETC)
2 – One-Stop Business Registration Super Form
3 – INCOME TAX RATES 2002-2014
4 – Flat tax for the Public Transport System
5 – Single Tax Payment Form to Be Introduced for Self-employed Persons
6 – IMPORTANT TAX DATES
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3. 1 – INTRODUCTION OF
EMPLOYMENT TAX CREDIT (ETC)
TAXATION BULLETIN-JANUARY 2014
Effective January 1, 2014 unregulated companies and self-employed individuals, engaged
in a trade, vocation or profession, will be entitled to claim a non-refundable Employment
Tax Credit (ETC) when computing their net income tax liability. However to qualify for the
credit, the eligible persons will have to file and pay their monthly payroll statutory
deductions on time.
The amount of ETC which may be claimed in respect of each year of assessment will be
equivalent to the total amount of payroll deductions and contributions for Education Tax,
NHT, NIS and HEART, which have both been declared and paid on time for employees
during that year. Eligible persons are therefore encouraged to file and pay their monthly
payroll deductions (S01) on a timely basis in order to benefit when filing their final income
tax return.
However, it should be noted that the ETC will be restricted to 30% of the tax chargeable on
the company’s or trader’s income. Additionally the ETC may not be claimed against any
income tax chargeable on non-trading income, such as interest and dividend income. Such
income will continue to be liable to tax at 25%.
The Employment Tax Credit is being introduced as part of the government’s Fiscal Incentive
regime. This follows months of discussion by a private sector led Incentives Working
Group, working in partnership with representatives of the Ministry of Finance and Planning
and TAJ. While the employment tax credit will benefit some businesses, it will also serve to
encourage greater tax compliance and boost employment.
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TAXATION BULLETIN-JANUARY 2014
2 – ONE-STOP BUSINESS
REGISTRATION SUPER FORM TAKES
EFFECT JANUARY 2,2014
Effective January 2, 2014 individuals will no longer need to visit multiple agencies to
incorporate a company or register a business name, as the Companies Office of Jamaica
(COJ) will now be providing a single registration facility.
The revised form will allow those incorporating companies or registering business names to
make a single application for their Taxpayer Registration Numbers (TRN), General
Consumption Tax (GCT), National Insurance Scheme (NIS), to register with the National
Housing Trust (NHT), and complete the Articles of Incorporation required for company
registration.
Under the old system an individual would need to visit multiple agencies – Tax
Administration Jamaica (TAJ), Ministry of Labour & Social Security (NIS), and National
Housing Trust - in order to complete the registration process.
The Super form is only applicable to locally incorporated companies; it does not apply to
companies incorporated outside of, but registered in Jamaica.
BENEFITS:
The “Super form” is more convenient in saving you time and cost, by visiting only the
Companies Office of Jamaica.
WHAT YOU GET WHEN INCORPORATED WITH THE SUPER FORM
o The Certificate of Incorporation
o NIS, TRN, GCT
o NHT, HEART Registration
o TCC (Tax Compliance Certificate)
Important feature
THE CERTIFICATE OF INCORPORATION:
 Will now have the NIS, TRN and GCT Numbers at the base of the Certificate.
The Tax Compliance Certificate (TCC):
 The Tax Compliance Certificate issued by the Companies Office will be valid for 90
days. At the expiration of the 90 days, a new TCC may be obtained from Tax
Administration Jamaica.
GCT Registration
 A GCT Data sheet will be issued along with the Certificate of Incorporation.
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5. TAXATION BULLETIN-JANUARY 2014
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3 – INCOME TAX RATES 2002-2014
INCOME TAX RATES, THRESHOLD AND EXEMPTIONS
INCOME TAX RATES, THRESHOLD & EXEMPTIONS 2002 - 2014
YEAR
20022006OF ASSESSMENT 2004
2005
2007
2008
2009
2010-12
2013
2014
INCOME TAX
RATE
25%
25%
25%
25%
25%
25%
25%
25%
INDIVIDUAL
THRESHOLD
120,432 144,768 193,440 196,872 270,504 441,168
507,312
507,312
EXEMPTIONS:
INDIVIDUALS OVER
65
120,432 144,768 193,440 196,872 270,504 441,168
507,312
507,312
AGE RELIEF
45000
45000
45000
45,000
62,500
80,000
80,000
80,000
165,432 189,768 238,440 241,872 333,004 521,168
587,312
587,312
PENSIONERS
UNDER 65
120,432 144,768 193,440 196,872 270,504 441,168
507,312
507,312
PENSIONERS'
RELIEF
45,000 45,000
45,000
45,000
62,500
80,000
80,000
80,000
165,432 189,768 238,440 241,872 333,004 521,168
587,312
587,312
PENSIONERS OVER
65
120,432 144,768 193,440 196,872 270,504 441,168
507,312
507,312
AGE RELIEF
45,000 45,000
45,000
45,000
62,500
80,000
80,000
80,000
PENSIONERS'
RELIEF
45,000 45,000
45,000
45,000
62,500
80,000
80,000
80,000
210,432 234,768 283,440 286,872 395,504 601,168
667,312
667,312
1. AMOUNT EXEMPTED IS LIMITED TO THE AMOUNT OF PENSION RECEIVED, NOT EXCEEDING
THE DENOTED FIGURE
2. RATES FOR 2010 – INCOME BAND 1ST $5,000,000 @ 25%, OVER $5,000,000 - $10,000,000 @
NOTE
27.5%, OVER $10,000,000 @ 35%

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TAXATION BULLETIN-JANUARY 2014
4 – FLAT TAX FOR THE PUBLIC
TRANSPORT SYSTEM
The new flat tax for the public transport system is intended to make the process of
paying taxes easier.
Source:TAJ
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7. TAXATION BULLETIN-JANUARY 2014
5 – SINGLE TAX PAYMENT FORM
TO BE INTRODUCED FOR
SELF-EMPLOYED PERSONS
Tax Administration Jamaica (TAJ), is collaborating with the National Housing Trust (NHT)
and the National Insurance Scheme (NIS) to introduce a Quarterly Statutory Payment (Selfemployed/Individuals) Form S03 by December 31,2013.
The new form will allow self-employed persons and individuals to complete and submit a
single form to make quarterly payments for Income Tax, Education Tax, as well as NHT and
NIS contributions.
With the introduction of the new quarterly payment form, self-employed persons and
individuals will save time and cost of having to complete several forms or having to visit
several locations to make their tax payment. They will also be better able to manage their
cash flow, as payments for education tax, NHT and NIS which would normally have been
due monthly will now be paid on a quarterly basis in keeping with the current requirement
for income tax.
The first quarterly statutory payment using the new S03 will become due on March 15,
2014. The subsequent quarterly payments will therefore be due June 15, September 15
and December 15.
The introduction of the S03 is another phase in the continued effort of the Government of
Jamaica to amalgamate the filing and payment of statutory taxes and contributions, with
the aim of making it easier to do business. During the last two years a consolidated
Employers Monthly Statutory Remittance Payroll Deduction Form S01 and Employers
Annual Return Form S02 were introduced.
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TAXATION BULLETIN-JANUARY 2014
6 – IMPORTANT TAX DATES
Tax Calendar
14th DAY OF EACH MONTH
− Employer’s Monthly Statutory Remittance
− Payroll Deductions’ (SO1) due
LAST DAY OF EACH MONTH
− Pay & file GENERAL CONSUMPTION TAX RETURN
MARCH 15th
− Pay and file FINAL INCOME TAX RETURN for previous year.
− File ESTIMATED INCOME TAX RETURN for current year
− File ASSETS TAX RETURN (companies)
MARCH, JUNE, SEPTEMBER, DECEMBER 15th
− Estimated Income Tax quarterly payments due
MARCH 31ST
− File EMPLOYER’S ANNUAL RETURN (SO2)
APRIL 1ST
− Property Tax payments due
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9. TAXATION BULLETIN-JANUARY 2014
9

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