Tax Administration Jamaica (TAJ) wishes to advise ALL employers that effective January 1, 2015, they will be required to electronically file their Employers Annual Return (S02) online via the Tax Portal www.jamaicatax.gov.jm. This means that all S02 returns filed as of the New Year are to be e-filed, as such returns filed manually will not be accepted.

This new requirement follows the initial phasing in of e-filing requirement for employers with twenty (20) or more employees, which was introduced on March 1, 2014.

This latest phase in mandatory e-filing requirement is being implemented in partnership with the National Housing Trust (NHT), the National Insurance Scheme (NIS) and HEART Trust NTA, to enhance the capacity to more accurately capture data in a timely and cost effective manner and to assist in the efforts to develop a more efficient tax system. It also forms part of the continued effort of the Government of Jamaica to make it easier to do business, as employers will no longer have to visit a Tax or NHT Office to file their consolidated annual S02 return.

TAJ, and its partner agencies will continue to provide support to business persons to help them to meet the new mandatory e-filing requirement. Over the next few weeks Customer Service and Compliance teams from TAJ, NHT, NIS and HEART will be embarking on an island wide programme to provide one-on-one support to employers to assist them to register to use the online option and to demonstrate how to file online. Accountants and other tax preparers may also access support on how to register their clients and to use the TAJ electronic filing platform.
In addition, plans are being finalised to establish filing centres and work stations, where employers and other taxpayers may utilise the computers to be made available for electronic filing and to get assistance from trained personnel. These service points will be set up at several locations operated by the various partner agencies, ahead of the March 2015 filing period.

Tax Administration Jamaica (TAJ) is reminding companies and self-employed persons that December 15 is the due date to pay the 4th instalment of their quarterly estimated Income Tax for 2014. Additionally, Employers are advised that since the due date for this month’s statutory payroll deductions falls on Sunday, December 14 they will be given an additional day to submit their S01 return, now due on Monday, December 15, 2014.

All persons are urged to file and pay on time. Employers in particular are reminded that by declaring and paying their S01 on time they can benefit from the Employment Tax Credit (ETC). This allows employers who are engaged in a trade, profession or vocation or the rental of approved hotel accommodation, to now claim a credit against income tax, provided that they make their (S01) payments on or before the 14th day of each month. Any statutory deductions paid after the respective due date or in respect of a month for which the Form S01 is filed late will not be taken into account when computing the ETC.

As TAJ continues to make it easy for persons to pay their taxes, taxpayers are reminded that they can use the administration’s online payment options. Persons can log on to the Tax Portal at www.jamaicatax-online.gov.jm from the convenience of their home or office and at any time, to pay these taxes using a valid credit card. Business persons are being encouraged to use our online payment option as the Tax Administration’s online service accommodates the filing and payment of all major tax types, including Property Tax, General Consumption Tax and Payroll Taxes.

In addition to the online option, business persons are reminded that their estimated income tax and employer’s monthly payments can be made at any of the 29 tax offices. Persons paying by cheque may also pay using the electronic drop boxes located in select tax offices.

Tax Administration Jamaica (TAJ) is continuing to make the necessary preparations to begin the phased implementation of its new Revenue Administration Information System (RAiS) beginning February 2015. Training is currently underway across the TAJ operations to prepare staff to use the new system. Additionally, TAJ is set to begin a series of stakeholder sessions, which will be conducted across the island, to engage primarily business operators and accountants who will be interacting with the system regularly.

This first phase, set for rollout February 9, 2015, will involve the implementation of General Consumption (GCT), Special Consumption Tax (SCT), Guest Accommodation Room Tax (GART) and Telephone Call Tax. The other tax types will continue to be processed on the existing system, until they are phased in over two remaining phases.

The new system will benefit taxpayers greatly by allowing them to access their information and transact business through a web based Taxpayer Access Point (TAP). Customers using RAiS will be able to view their filing/payment history, as well as any notice sent by the administration. The new system will also allow persons to apply online for all GCT refunds, make payment arrangements, and submit notice of objection, as it relates the particular tax types. Customers will also benefit from a more interactive electronic filing experience and be able to make online payments using an automated direct banking (ACH) option, to be made available in this phase. Additionally, customers will be able to file and pay GART and Telephone Call Tax online.

June 2016 is the date set for full implementation of RAiS, which is being spearheaded by TAJ in partnership with Egov Jamaica and FAST Enterprise LLC, a US based firm which has rolled out similar applications in over 140 projects worldwide. The two year RAiS project is expected to significantly improve the TAJ’s capacity to integrate and administer the various tax systems currently in use.

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As part of the Tax reform measure to bring taxpayers into the net , the Minimum Business Tax (MBT) was implemented under  The Provisional Collection of Tax (Minimum Business Tax) Order, 2014, which was issued on March 31,  This imposes a Minimum Business Tax of $60,000. per annum on certain companies and individuals in business.
Who is required to pay MBT?
 1. Companies or other corporate bodies incorporated or registered in Jamaica under the:
     a. Companies Act (This includes overseas companies);
     b. Building Societies Act;
     c. Friendly Societies Act; and
     d. Industrial and Provident Societies Act.
 Only organizations registered under the Charities Act, 2013 will be exempt from MBT.
There is no exemption for  Dormant , Loss making entities nor Income tax exempt entities, other than a charitable organization.
2. . Individuals operating a trade, profession, vocation or business, with “gross revenue” equal to or greater than $3 million for the year of assessment
The first installment in the amount of $30,000 is due on June 15, 2014 and it seems that there will be no pro-rating for the 2014 calendar year even though the MBT became effective on April 1, 2014.

Read our May 2014 newsletter for additional detail