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Come 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.
Speaking at the launch of the new business registration form (super form) on Thursday, December 19, Minister of Industry, Investment and Commerce, Hon. Anthony Hylton, said under the new system those incorporating companies or registering business names will 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
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.
Media Entity: Go Jamaica
Charitable organisations are being warned that they could be asked to pay more than three times the duties payable on imports if they are found to have breached the rules granting tax relief.
The warning comes as the finance ministry outlines new arrangement for the Tax Treatment of Approved Charitable Organisations.
The ministry says following the recent passing into law of the Charitable Organizations (Tax Harmonization) (Miscellaneous Provisions) Act, 2013, charities will no longer be required to apply to the Minister of Finance for tax relief.
It says this will be administered by the Jamaica Customs Agency and the Tax Administration Jamaica (TAJ), effective July 15.
This is an interim arrangement until the Charities Law is enacted later this year.
The finance ministry says other organisations that do charitable works, but have not been designated as an Approved Charitable Organisation by the Commissioner General of the TAJ, should take the steps necessary to become compliant.
Otherwise it says such groups should seek to work with an Approved Charitable Organisation.
The ministry is warning that the Jamaica Customs Agency and the Tax Administration Jamaica will execute post-audits from time to time.
It also says the appropriate remedies and penalties will apply where it has been determined that an Approved Charitable Organisation, which has benefited from a tax relief, is operating contrary to the provisions of the tax laws.
Media Entity: Jamaica Gleaner
Tax Administration Jamaica (TAJ) is reminding that an increase in the Income Tax Threshold and a cut in the Corporate Income Tax rate will take effect tomorrow.
The income tax threshold which is the tax-free portion of one’s salary will move to $507,312 a year, up from $441,168.
This means that for weekly paid workers, the first $9,756 will not attract income tax.
For people who are paid fortnightly, the first $19,512 will not be taxed, while for monthly paid workers, the first $42,276 will not be taxed.
The TAJ said the portion of people’s salary that exceeds the threshold will continue to be taxed at 25 per cent.
For pensioners and persons 65 years and over, in addition to the increased threshold, they are entitled to a pension exemption of $80,000 and an age exemption in the similar amount.
Meanwhile, come tomorrow, the new 25 per cent Corporate Income Tax rate will take effect for most companies.
The old rate of 33 and 1/3 per cent will remain in effect for companies regulated by the Financial Services Commission, the Office of Utilities Regulation, the Bank of Jamaica,; and the Ministry of Finance and Planning.
The adjustments to the income tax threshold and the corporate income tax rate were announced earlier this year during the Budget presentation.
Tax Administration Jamaica wishes to remind business persons and companies that their second quarter instalment of Estimated Income Tax payment, for the assessment year 2013, is due on June 15, 2013. However since the due date falls on a Saturday, the payment date has been extended to Monday, June 17, 2013.
The required payment is in keeping with provisions under the Income Tax Act wherein taxpayers are obligated to calculate and declare their estimated income and the applicable tax for each year and pay the amount to the tax authority in four (4) quarterly instalments by March 15, June 15, September 15 and December 15 of each year. However this requirement does not apply to persons whose only source of income is from employment and whose taxes are paid under the Pay As You Earn (PAYE) system.