Frequently Asked Questions

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There is no limit. Deduct NIS from gross emoluments and calculate 2% for employees and 3% for employers. Self-employed persons pay 2%.

65 years for both males and females, however once the individual is self-employed there is no age limit.

 

Each Jamaican resident 18 years old and over is allowed US$500 worth of personal and household effects exempt from duty, once every 6 months.

Contract of services refers to an employed person while Contract for service refers to self-employed individuals.

Apply to Tax Administration Jamaica; Refunds Unit - 116 East Street Kingston.

The person will be taxed at the double taxation rate of 15% providing prior approval was given by the TAAD.

Yes. NIS, NHT and Education Tax once the person is earning above the minimum wage and Income Tax if he earns in excess of the threshold.

Register the business with the Companies office of Jamaica. Register with NIS and NHT. Register with  the Tax Office(for Income Tax, GCT, and Education Tax). Ensure that all returns are filed and payments are made up to date. 

It is possible that Customs was not able to verify whether or not the camcorder was brought with you from Jamaica on your trip. It is important for all persons leaving Jamaica with items which they intend to take back (e.g. camcorder) to register those items.

Merchandise will be held for 30 days, and if not entered will be auctioned.

At any Collectorate or Revenue Service Centre islandwide.

This should be absorbed into the cost of the operations.

This is claimed in the profit and loss account of the business as an expense. Note. If any private element is included this must be deducted.

This should be absorbed into the cost of the operations.

Yes. If the cost of the machinery is $100,000 or less, all of the input tax is claimable at the end of the taxable period in which such input tax is charged, however, effective May 2, 2011, if the cost of the machinery is over $100,000 the input tax is claimable over 3 months.

The rental rate for the instrument is - 16.5%, while the calls attract 25%.

GCT is chargeable on the total cost of the service provided and not based on the components which makes up the total cost.

Gross Salary less National Insurance Contributions (NIS), approved superannuation contribution and the tax-free income (threshold) for the period of payment multiplied by 25%.

The tax-free income is outlined as follows: If you are paid: weekly- $8,484, fortnightly $16,968 and monthly $36,764.

PAYE (Income Tax) -25%. Education Tax 2% employees, 3% employers NHT- 2% employees, 3% employer NIS - 2½% employees, employer 2½% (salary ceiling - $1,000,000).

Click on the forms link from the homepage.

*If tax has been overpaid *If the employee was off on scholarship and tax was deducted *if the person becomes unemployed and did not utilize the full tax free income for the year *If a person qualifies for exemptions and this was not applied in calculating the tax.

12½% initial and 12½% annual allowances. Note that this is calculated on the straight line basis and the annual allowance is pro-rated in the year of purchase.

For employment of 3-years or more- use the formula 2 ¼ times Average Annual Pay for last 3 years times the number of years of service, divided by 33 1/3 years.

All persons at the rate or rates specified by the Income Tax Act.

If the payment is made from the consolidated fund .If the payment is made under an approved Tourism gratuity scheme.  If the redundancy payment qualifies for the tax free exemptions.

At any Tax Office island wide or by using our E-Services at www.jamaicatax-online.gov.jm

This is used as a tax credit in the year of assessment in which it was paid. It cannot be refunded nor carried forward to future years.

Effective January 1, 2010 gratuity payment up to $29,104 is tax free, however, if a person earns income in excess of $500,000 he will not qualify for this tax free gratuity.

Effective August 1, 2009:  Where cash payments are made by the employer, whether to Landlord or to the employee, the total amount paid for the allowance is subject to PAYE and all other statutory deductions.

N.B  for further information please see Technical Bulletins: The Treatment of Certain Allowances effective August 1, 2009

Yes, however, if a refund is due it will be given after your return has been examined.

Uniform $5,739, laundry $3,395 pa. In cases where the employer provides uniform for an employee in the exempt category, subtract the exempt amount from the cost of the uniforms/laundry and tax the  difference which is subject to PAYE and all other statutory deductions.

No, you are not allowed to use tax threshold to increase loss.

Company - 33 1/3% (with the exception of building societies which pay 30%) Individuals - 25%.

No. If the persons are employees, i.e. they cannot decide when and where the work is performed, the hours during which the work is carried out, they do not provide their own tools, equipment and materials and they are subject to supervision and control then they should be added to the payroll and taxed accordingly.

Yes. Once the pay has exceeded the tax free income.

He completes an application form in duplicate that he gets at a RADA parish office. The forms are sent to the Ministry of Agriculture, which recommends suitable applicants to the Minister of Finance, which the Ministry of Finance approves. The approved farm and farmer are gazetted in the Jamaica Gazette and approved for a 10-year period.

Once your emoluments or statutory income exceeds the tax-free income and any qualified exemptions.

Yes. However, only the portion that relates to the business is allowable.

June 1, 2000 - March 31, 2001 = 20%
April 1, 2001 - March 31, 2002 = 10%
April 1, 2002 - December 31, 2008 = 0% (This relates to companies listed on the Jamaica Stock Exchange).
Effective January 1, 2009 Dividends paid to Jamaican resident by Jamaican resident companies = 0%
 
N.B. for further information please see Technical Bulletins: Amendment to the Income Tax Act - Taxation on Dividend Income.

Yes. However, permission must be requested in writing to the Commissioner General of Tax Administration Jamaica.

The profit or loss must be shared between the partners as agreed and each partner must return his/her share of the profit using the IT01 form.

No. However, if qualified then they are entitled to both Golden age and pension exemption.

PAYE (Income Tax) -25%. Education Tax 2% employees, 3% employers. NHT- 2% employees, 3% employer. NIS - 2½% employees, employer 2½% (salary ceiling - $1,000,000)

For employment of 3-years or more- use the formula 2 ¼ times Average Annual Pay for last 3 years times the number of years of service, divided by 33 1/3 years.

Yes. However, permission must be requested in writing to the Commissioner General of Tax Administration Jamaica.  Inland Revenue Department.

 

Yes. Provided that all the necessary conditions outlined by Tax Administration Jamaica have been met.

At any Tax Office Collectorate or Revenue Service Centre Islandwide.

 

Yes. If the total income exceeds the tax free amount plus exemption(s), then tax will be payable on the excess. The threshold and exemption(s) are outlined as follows: Tax threshold $441,168 (as at January 1, 2010). Pension exemption $80,000 and Golden Age relief (65 yrs. & over) exemption - $80,000.

The person is exempted under Section12 (y) (i) of the Income Tax Act - -person suffering from a disabling permanent physical handicap resulting from illness, injury… however, the person must be certified by the Minister responsible for Social Security on the advice of Chief Medical Officer.

No. It applies to specific industries - in particular manufacturing, agriculture etc.

Yes. If he/she is regarded as self-employed.

Yes, the return should still be filed although you have made a loss.

An approved farmer is one who is approved under Section 36D of the Income Tax Act for engaging in a prescribed agricultural activity. He must keep separate books of accounts for his framing activity.

Yes, once the person is earning income exceeding the tax threshold.

No, only "approved" farmers

Report the lost to the Police- obtain Police Report. Take Report to the Tax office along with the vehicle documents, TRN, ID and complete form for Substitute title. Cost for new Title is $1,500.00.

 

The following processing steps should be completed at the Tax Office

• Report the loss at the Driver’s Licence Section at the Tax Office of original issue or a Tax Office nearest you NB. Documents to present:

- Tax Registration Number (TRN)

- One (1) recent Passport size photograph

- Identification (passport/National ID)

- Any other particulars:

° Driver’s Licence Number

° First Issue of Licence

° Copy of Receipt

• Provide the Tax Office with the following information:

- Name and Address

- TRN

- Any other relevant information (see ‘Documents to present’

• The Tax Office will:

  • Conduct a search of the records of the Driver’s Licence Contact the Island Traffic Authority fax (929– 6210) regarding any judicial endorsements (disqualification, convictions, etc) against the driver’s licence.

Payments can be made at any Tax Office or using our E-Services at  www.jamaicatax-online.gov.jm

Yes. The original receipt must be submitted at the Collectorate where the tax was paid. If the refund is up to $3000.00 the refund can be processed the same time and paid in cash. However, if the refund is$3000.00 and over, this will be paid by cheque. The process takes two weeks or more.

Yes, as long as he takes along the last receipt or valuation number.

The Government has put in place mechanisms for persons to seek relief from Property Tax where special circumstances apply. The 3 main types of relief are: Statutory, Derating and Special Discretionary Relief.

You can write a letter through your local Parish Council to the Ministry of Finance for a reduction or full remission of property taxes. Requests for Special Discretionary Relief should include the following information: Valuation District, Valuation Number, Property Address, Evidence of inability to meet the tax liability and any other relevant information.

No. You may however object to the valuation of your property. You do this at the Land Valuation Department. It is in your interest not to make frivolous objections, as these could cost you both time and money.

Obtain a letter from the employer. Take that along with your last two pay slips, TRN and original shipping documents to any of the selected Collectorates or Revenue Service Centres that handles TCC processing and complete and application form.

No. All persons applying for a TCC should have a TRN.

Obtain a clearance from NIS & NHT and take your TRN, original copies of receipts for previous and current year to any of the selected Collectorates or Revenue Service Centres that handles TCC processing.

All importers submitting an import entry to clear goods through Customs, Customs Brokers, Contractors applying for government contracts, applicants for Security Commissions Licence, Security Firm Registration, Citizenship or Work Permit.

There is no fee involved in obtaining a TRN. Visit any of the 29 Collectorates islandwide and submit an application along with either of the following: Driver's Licence, Passport, National Identification Card with a certified copy of your Birth Certificate and/or Marriage Certificate. Self-employed persons need NIS and BNRC (if trade name is registered).

The completed Organization application form signed by a Director or the Company Secretary must accompany the: Certificate of Incorporation; Articles and Memorandum of Association; NIS Clearance Letter or payment card; TRN of each Director and ID for Signatory Officer.

Yes. Only certified copies of the Marriage Certificate can be used along with any other approved ID.

Return to the TRN office, give details about the business, they will prepare a data sheet; a copy will be given to you.

Yes. Employees' TRNs are to be quoted when annual returns for statutory deductions are submitted.

The completed Organization application form signed by a Responsible Officer or Local Representative must accompany the: Registration or Charter Documents (for companies not registered in Jamaica) Letter of Registration (for companies registered in Jamaica) NIS Clearance Letter, TRN for each director, ID for Signatory Officer.

Yes, non-profit organizations need to apply for a TRN.

The tax payable on a deceased’s estate…

Under Part 2 Section 3 of the Transfer Tax Act, the seller of the property pays it before the property is transferred.

Prior January 1, 2009- 7 1/2 %

January 1,2009 to July 31,2009- 5%

August 1, 2009 to Present- 4%

A.  Joint Tenancy:

  • Revenue Affidavit
  • Documentary proof of ownership of property(ies)
  • Death Certificate
  • Application to Note Death
  • If principal place of residence, Statutory Declaration

    Sole Proprietorship/Tenancy in Common:

  • Documentary proof of ownership of property(ies)
  • Death Certificate
  • Revenue Affidavit
  • Probate with Will or Letters of Administration
  • Inventory or Oath of Executor/ Oath of Administrator
  • Transmission Application
  • Assent to Devise
  • Documentary proof for any outstanding debt/ mortgage

Yes. Market values at the time of death are used when calculating the Transfer Tax.

Section 12 (2) of the Transfer Tax Act gives the formula for calculating Transfer Tax (on death).

Yes, the application must, however, show the relevant documents for all the properties and indicate the property on which the tax should be apportioned.

When the grace period given after the initial assessment has passed, the case is updated and the next due date and the date of assessment will be the same.

The Revenue Affidavit is a return, and becomes the property of the Stamp Commissioner once it is filed. It cannot be withdrawn after an assessment is raised because the properties and shares left behind by the deceased will not be transferred unless the taxes are paid.

One year after the deceased’s death.

Interest is calculated at the rate of 6% per annum, on the Transfer Tax outstanding (Paragraph 17(3) of Part Two of the Transfer Tax Act)

Although the jointly held property is not considered a part of the deceased’s estate by the courts, the deceased had a disposable interest in it. It is this half interest which is taxable under Section 5(1). However, if the property qualifies as the principal place of residence, it is exempted from tax.

Allowances given are: Medical expenses, Funeral expenses, Debts and Mortgages.

Yes, the Transfer Tax can be paid by installments by virtue of Paragraph 21(2) of Part II of the First Schedule of the Transfer Tax Act.

Payments are made by Cash or Manager’s Cheque only. No personal cheques are accepted.

Payments made by Cheque should be made payable to the Commissioner General.

Applications can be made to the Minister of Finance for a Waiver of the Tax and/or Interest.

No, only one principal place of residence can be granted under the Act (Paragraph 11(5) of Part Two of the First Schedule).

The Stamp Duty paid on the Probate was assessed by the Courts and is calculated on all the assets owned by the deceased (inclusive of cash, Insurance, Bonds etc.). The Probate is up stamped with the transfer tax (on death) paid because it is the prescribed document under the Transfer Tax Act. It must be up stamped with the total tax, which was paid in the Testator’s estate.

No tax is payable as long as the estate, from which the property is passing, has been settled. (Section

The Will & the Oath of Administrator are needed to process a Share Transfer and an Assent Transfer because they both dictate by Law who should benefit from the estate or the particular asset.

Because there exist two separate transactions. Firstly, the Transfer Tax is charged on the deceased’s taxable assets. (TRANSFER TAX IS PAID). Secondly, the assets of the deceased are passed to the Legal Representative and then to the beneficiary (NO TRANSFER TAX PAYABLE).



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