You must file your taxes ... pay too ... but file first ... even if you can't pay
Everyone doing business is REQUIRED to file Annual Income Tax Returns whether or not income tax is actually due. Active and dormant companies, charities, businesses, business persons, partnerships, professionals, tradespersons and sole traders must file annual income tax returns. Returns are filed electronically.
Required Returns
Entities
IT02 - March 15 - Income Tax Return
IT07 - March 15 - Estimated Company Income Tax Return
S02 - March 31 - Employers Annual Return
Individuals
IT05 - March 15 - Annual Return of Income and Tax Payable Individual
S04 - March 15 - Company Directors and/or Self Employed Persons Annual Return of Income, Taxes and Contribution Payable
S04a - March 15 - Declaration of Estimated Income, Taxes and Contributions Payable (Self Employed Resident Individuals)
It is mandatory for all registered corporate entities and certain individual taxpayers to electronically file their income tax returns. Such individuals include employed persons with other sources of income, self-employed persons and pensioners.
Interest & Penalties
Failure to file income tax returns attracts penalties and interest. Failure to pay income tax attracts separate penalties and interest. Therefore, it is important to file annual income tax returns even if no payment is forthcoming.
A return filing penalty of $5,000 per month or part thereof, up to a maximum of $1 million, is imposed for late filing of income tax returns and declarations of estimated income tax payable. The penalty is imposed on the taxpayer automatically if the due date for filing is missed.
A provisional income tax return may be filed on or before the due date and a subsequent revised return submitted to the tax authorities. Even if no taxes are due (no tax liability) a (NIL) return must be filed.
All outstanding penalties attract 20% interest per annum.
Additional Taxes
Minimum business tax and asset tax (for non-financial entities) are no longer applicable.
Tax Waiver Request
Income tax account wavier requests may be directed to:
The Commissioner
Technical Specialist Unit
Tax Administration Jamaica (TAJ)
Ocean Boulevard
Kingston
The letter must include:
Name and TRN of entity
Entity representative name and contact detail
Waiver request period
Reason for request (keep it simple)
Key Takeaway
Provisional, NIL or final Income Tax Returns MUST be filed on or before March 15 to avoid late filing penalties, interest and unnecessary heartache.
