Tax Administration Jamaica (TAJ) has revised income tax return forms, which have been gazetted to take effect January 1, 2014. All categories of taxpayers, such as companies, self-employed persons, individuals and partnerships are required to use the revised forms to file their returns during the current income tax filing period, due by March 15.

The changes to the series of income tax forms have been made to reflect recent changes to income tax rates and variations in tax on dividends. In addition, the revised forms will allow TAJ to capture additional information making it easier for the administration to process tax returns.

For companies, the IT02 return has been revised to require persons to indicate if they are categorised as a regulated, large unregulated or unregulated company. This is important as the tax rate for each category differs with the 2013 adjustment to tax rate for companies. While the income tax rate for regulated companies remains at 33⅓%, the rates for large unregulated and unregulated companies were reduced to 30% and 25%, respectively. It should be noted that the 30% rate for large unregulated companies only apply to Year of Assessment 2013, as effective January 1, 2014 they are now taxed at 25%.

In general, all the annual income tax returns have been amended to capture changes in the varying rates for dividends. The forms have also been adjusted to include a separate line to identify partnership income. The declaration section of the forms has been amended and now requires that persons who prepare the tax return provide details of their name, TRN and contact information.

The use of the estimated income tax return, IT07, has also been adjusted. Companies and other organisations will continue to use the estimated income tax return for both filing and payment. However, self-employed persons will only use the IT07 to declare their estimated income. They will now use the new single Self-employed Quarterly Statutory Payment Form S03 to make their payments, not just for estimated income tax, but also for education tax, as well as NHT and NIS contributions.

The revised income tax returns, along with a Notes and Instructions booklet, are available on TAJ's website at www.jamaicatax.gov.jm. Persons filing manually may therefore download the forms, which may be filled-in electronically, then printed, signed and taken to any tax office. As a more convenient option, tax returns may be filed using the Jamaica Tax Portal and payments made using a credit card or direct banking.
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Self-employed persons will now find it simpler to pay their estimated income tax, as well as education tax and NHT and NIS contributions with the introduction of a single Quarterly Statutory Payment form (S03). This form, which was introduced on January 1, 2014, replaces four separate payment vouchers and forms that this group was previously required to fill out in order to make payments.

To add to this convenience, the applicable taxes and contributions for education tax, NHT and NIS are now due quarterly, similar to estimated income tax, instead of monthly. “These changes will save time and reduce the administrative cost that many taxpayers currently face”, says Meris Haughton, Director Communications, TAJ.

The first consolidated quarterly statutory payment using the new S03 form becomes due on March 15, 2014. The form is currently available on the Tax Administration Jamaica website at www.jamaicatax.gov.jm. Self-employed persons may download the S03, complete it and make payment at any tax office for all the entities.

Starting January 20 and continuing for the next few weeks, TAJ and partner agencies NHT and NIS will be hosting sensitisation sessions for self-employed persons and other stakeholders across the island. At that time participants will also be briefed on other initiatives to be introduced in coming months.

The implementation of the S03 form and the quarterly payment schedule are part of an on-going effort by government to simplify the tax process and make it easier to do business in Jamaica. Over the last two years government similarly consolidated the Employers Monthly Statutory Remittance Payroll Deduction Form (S01) and introduced a single Employers Annual Return form (S02).

Source: JamaicaTax.gov.jm

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