Advertorial Amendment of Tax Forms for 2022 and 2023
Tax Administration Jamaica is advising that several forms have been revised during this filing period in keeping with feedback from stakeholders and international best practices.
Additionally, the revised Income Tax Returns captures more information, as well as provides more convenience and efficient use for the taxpayer.
Taxpayers are reminded to take note of several forms, which have been revised for this filing period for greater efficiency and convenience.
These forms are:
? IT02 Annual Return of Income and Tax Payable – [Organisations (Bodies Corporate)] for the year of assessment 2022
? S04 Self Employed Persons Annual Return of Income, Taxes and Contribution Payable.
? S04a Declaration of Estimated Income, Taxes and Contributions Payable (Self Employed Resident Individuals
Details in relation to each of the forms stated above are given below:
IT02
IT02- Annual Return of Income and Tax Payable – [Organisations (Bodies Corporate)] for the year of assessment 2022 was amended as follows:
Section “A”- General Information was modified to capture details of first time filers, the period being filed for, the date of incorporation and details on the preparation of the Financial Statements or accounts that supports the returns. The additional questions are reflected in Line 7, 10 and 13 of Section A. The information in relation to first time filers becomes relevant due to the fact those persons return will be used as the de facto application for permitted accounting period (PAP) where the accounting period end is not 31st day of December.
Section “I” Preparer’s Details” is expanded to include detailed information on the preparers of the financial statements or the Tax Accounts used to prepare the return. This is required if the information is prepared by an internal or external individual or firm.
The “Declaration” is now captured in Section J of the form.
In addition to the above, Schedule 7 is modified to facilitate the claiming of ETC by entities entitled to relief under the Urban Renewal (Relief) Act which have other Trade Income that is not entitled to such relief. The additional question to make such declaration is reflected in Section B – Ratio of Trading Income to Total Income of the Schedule 7. In Section C of the Schedule, Line 11 – Other Deductions has been expanded to include adjustment for such income.
S04
S04 – Self Employed Persons Annual Return of Income, Taxes and Contribution Payable.
The following updates were made for the 2022 version of the form:
Section A was updated to capture pertinent details to facilitate greater efficiencies in the processing of requests for permitted accounting period and also information on the preparers of the financials used in preparation of the return.
Additional questions now included are “Date Business Registered”, “Is this your first time filing?” and “If Yes, indicate the period being filed for”. These changes are reflected in lines 9 and 14 in Section A.
The information in relation to first time filers becomes relevant due to the fact those persons return will be used as the de facto application for permitted accounting period (PAP) where the accounting period end is not 31st day of December.
In addition to the above, a distinction is now being made between persons gainfully occupied and those gainfully employed in Jamaica. This serves to provide greater clarity to taxpayers who can be either or both. The additional question at line 15 reads “Are you gainfully occupied in Jamaica?”
Details in relation to the preparers of the financials or accounts used to prepare the returns are captured by question at line 18 which reads “The Financial Accounts were prepared: Internally/ Externally”
Section B (INCOME FROM ALL EMPLOYMENT AND OFFICES) was adjusted to facilitate the capture of NIS deducted by employers (employees’ contribution) of persons employed to Embassies etc. at line 26a. Also, “Income from Self-Employment earned overseas “is now included under the heading “INCOME FROM SOURCES OUTSIDE THE ISLAND” at line 43 in Section B to facilitate the automatic transfer of same to Schedules A & B where applicable.
In addition to the above, the automatic transfer of the items that were removed and subsequently reversed on the Schedules A is now in place. See lines 13 and 14 of Section B of the Schedule A.
S04a
S04a – Declaration of Estimated Income, Taxes and Contributions Payable (Self Employed Resident Individuals) for year of assessment 2023 was amended as follows:
Section F – Statutory Income Subject to Estimated Taxes and Contributions was amended to remove the duplication in treatment of income from Self Employment earned overseas in calculating the correct figure for Statutory Income Subject to Estimated Taxes and Contributions.
Section G – NIS Contribution section was amended to facilitate the increase in the ceiling from 4.5mil to 5mil for 2023
For additional information this tax season, persons may contact the Tax Administration Customer Care Centre at 888-TAX-HELP (888-829-4357) or visit the website www.jamaicatax.gov.jm