UCC Presentation 2024 PDF

KRSC Taxpayer Education Unit October 3, 2024 What Every Entrepreneur Should Know What TAJ expects from you Tax Returns, Rates & Due Dates How to complete Income Tax Returns (S04/S04a) Tax Compliance Certificate (TCC)  What TAJ expects from you Honesty You should b...

KRSC Taxpayer Education Unit October 3, 2024 What Every Entrepreneur Should Know What TAJ expects from you Tax Returns, Rates & Due Dates How to complete Income Tax Returns (S04/S04a) Tax Compliance Certificate (TCC)  What TAJ expects from you Honesty You should be honest in your dealings with any department of the Tax Administration. Tax Payment & Filing You should pay your tax due on time You should file correct returns and document and provide complete and accurate information within time limits specified Keeping TAJ informed You should keep us informed if you have a change of business or mailing address or business name. Record Keeping You should keep sufficient records to enable your tax liability to be accurately calculated. Before you file and pay online TAJ A TAJ Portal Login is Required RAIS eServices Registration is needed to file 5  Rates – Self Employed Self Employed Basis of Calculation NIS 6% Net Profit NHT 3% Net Profit ED TAX 2.25% Statutory Income Net Income – (NIS – Approved Superannuation) PAYE/ Income 25% Statutory Income less Tax Income Tax Threshold & 30% (6M)  Income Tax – Rates & Returns Categories Companies Individuals Employee Partnerships Taxpayers (er)s Sub Type Profit Tax Profit Tax PAYE Profit Tax Rates 331/3% Net Income 25% (Net Income – 25%(gross salary– 25% (Net Income – Regulated Entities NIS – nil rate – nil rate-NIS- NIS – nil rate – approved pension approved pension approved pension 25% Net Income contribution) contribution) contribution) Unregulated Entities 30% over 6M 30% over 6M ***Tax on Partners Taxable Period Trading year Calendar year Deducted & Calendar year remitted monthly Returns ITO2 & IT07 SO4 & S04a S01 & SO2 (Filed ITO3 by employer) Return Due Date March 15th March 15th March 31st March 15th File and Pay Taxes Online  Due Dates & Returns March 15 S04 & S04a - Sole Proprietor IT02 - Body Corporate/Ltd IT03 - Partnership  Due DATES & Returns April 1 TB01- Trade & Business Licence Last business day in the month after General Consumption Tax (GCT) 14th day of the following month Payroll Taxes (S01/S02)  Online Payment Options Credit Card Bill Pay (NCB) & BNS Payment E-Banking Options (BNS) Direct Funds Transfer Tax Compliance Certificate (TCC)  WHAT IS THE PURPOSE OF A TCC? A Tax Compliance Certificate is needed to ensure that an individual/organisation is tax compliant and that all tax-liabilities and wage related statutory deductions are up to date where applicable. **It further serves to encourage voluntary compliance.  WHAT IS TCC USED FOR? Bidding on government contract. Betting Gaming & Lottery Required by the Public Procurement Commission Custom Broker (Regulatory Body for procurement Agencies) Securities Commission Procurement Agencies (ministries and department) Customs clearance Importation purposes/import Applying for government loan vehicles and personal items. Citizenship and Work permit Road Licence Security Firm Registration To open business bank account/s  Requirements for Obtaining a TCC  Complete application form Online. www.jamaicatax.gov.jm Attachments:  Certificate of Incorporation/ Business Name Registration Clearance Letters- Required where balances are reflecting on accounts for;  National Insurance(NIS)  National Housing Trust(NHT)  Heart TAJ will process clearance for various tax types  Income tax (Corporation Tax./ Self Employed Income Tax)  Letter for No trading with a new trade date where applicable  Statutory Taxes  Letter re no employees for companies where applicable  Other Tax types For first time applicants an interview will be required  TYPES OF TCC Special – Issued to individuals for a specific purpose and is valid for one month (Custom Clearance) Open – Issued to companies and sole proprietors who are compliant to date, valid for 3-6 months (Contract and Multipurpose) Gold – Issued to applicants who have paid and filed their returns on time for 12 consecutive months and is valid for one year **An automatic TCC is issued by the system once the taxpayer is fully compliant.  TCC REJECTION WHY WAS I REJECTED A TCC?  Already has a valid TCC.  Returns are NOT filed up to date.  Outstanding payments that are not addressed.  No payment arrangement was made with the Debt Collections Department.  Required documents were not provided.  Fail to report income from ALL sources.  Several failed attempts to contact taxpayer for an interview. (for first time applicants) ONLINE APPLICATION PROCESSES To apply for the TCC visit TAJ’s website Exploring Income Tax Return- S04/S04a  Reminder !! The obligations of the New Entrepreneur are as follows-: File an IT03/IT02/IT07/S04/S04a Return by March 15 of each year File S01 and S02 returns where the organization has employees A penalty of $5000/month will apply for late filing of the IT12 & S02 Keep proper books and records as required by the Income Tax Act, Revenue Administration Act and the Charities Act Update TAJ of any changes; Eg Address, directors etc. ‘How to’ Guides  Contacting TAJ - External 888-TAX-HELP (829-4357) [email protected]; [email protected] www.jamaicatax.gov.jm www.facebook.com/jamaicatax @jamaicatax @jamaicataxonline www.youtube.com/user/watchtaj