Jamaica Revised Income Tax Related Forms for 2017

JAMAICA NEW INCOME TAX RELATED FORMS

Background The amalgamated Self Employed Persons Annual Return of Income, Taxes and Contributions Payable (S04) was introduced in 2014 to facilitate ease of filing by individuals who were required to file the IT01, ET01, NIS and NHT annual returns. Since then the S04 series of forms and rules have been updated to reflect the latest legislative requirements for TAJ and other statutory agencies.

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March 1, 2017

In 2016, legislation was amended to increase the income tax threshold from Five Hundred and Ninety-Two Thousand, Eight Hundred Dollars ($592,800.00) to One Million, Two Hundred and Seventy-Two

Dollars ($1,000,272.00). The

revised threshold became effective on July 1, 2016. With the introduction of the revised threshold the effective annual threshold for year of assessment 2016 is the aggregate of the two thresholds, divided by two (($592,800.00 + $1,000,272.00)/2), i.e. $796,536.

Additionally, the legislative changes also introduced a new tax rate of thirty percent

(30%) on statutory income in excess of Six Million Dollars ($6,000,000.00) for the period July 1 to December 31, 2016.

To allow the taxpayer(s) to correctly compute their income for year of assessment 2016, in accordance with the legislation, TAJ has enhanced the S04 series of forms and included the following schedules, which are to be filed along with the S04: 1. S04 Schedule A - Computation of National Housing Trust (NHT) Contribution, 2. S04 Schedule B - Computation of National Insurance Scheme (NIS) Contribution, and 3. S04 Schedule C - Specified Statutory Income (should only be used for year 2016).

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March 1, 2017

Additionally, the S04a has been revised to facilitate an easier computation of the estimated taxes and contributions.

The IT05 has also been enhanced to facilitate the changes in the tax computation rates. In addition to the enhancements of the IT05, a new IT05 Schedule A has been created to facilitate the filing of the IT05.

This

schedule is to be attached to the IT05 and should only be used for the year of assessment 2016.

New Features S04 has the following new features The dividend is now separated into “Preference” and “Ordinary” Dividend in order to identify the amount of ordinary dividend that is to be taxed at 15% as a final tax.

Interest Received, Annuity and Discounts were separated to facilitate calculations for NIS and NHT. The calculations for National Housing Trust (NHT) and National Insurance Scheme (NIS) were removed from the S04 and respective schedules were created for the computations of each.

The net amounts for NHT and NIS is to be transferred from their respective schedules. As such, taxpayers will be required to complete S04 Schedule A - Computation of National Housing Trust (NHT) Contribution and Schedule B - Computation of National Insurance Scheme (NIS) Contribution.

The S04 now contains a new income line called “Non-Executive Director’s Fees”.

The form now contains the tax computation lines at the rate of 0% and 30%.

All taxpayers completing the S04 for the year of assessment 2016 must complete schedule C. The statutory income for all tax rates must be transferred from S04 Schedule C.

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March 1, 2017

IT05 has the following new features The IT05 now contains a new income line called “Non-Executive Director’s Fees”. Note that income line is for persons who are sixty-five years and over.

The dividend is now separated into “Preference” and “Ordinary” Dividend in order to identify the amount of ordinary dividend that is to be taxed at 15% as a final tax.

Interest Received, Annuity and Discounts were also separated.

The IT05 now contains the tax computation lines at the rate of 0% and 30%.

All taxpayers completing the IT05 for the year of assessment 2016 must complete Schedule A. The statutory income for all tax rates must be transferred from IT05 Schedule A.

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March 1, 2017

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March 1, 2017