Minimum Business Tax - Update As of April 1, 2014, companies or other bodies corporate, incorporated or registered under the Companies Act (including companies incorporated outside of Jamaica and registered as Overseas Companies), Building Societies Act, Friendly Societies Act, Industrial and Provident Societies Act, except charitable organizations registered under the Charities Act are required to pay Minimum Business Tax of sixty thousand Jamaica Dollars (JMD$60,000) each year, to be paid in two equal installments of thirty thousand Jamaica dollars (JMD$30,000) June 15 and September 15. The tax is to be paid by ALL companies (dormant or not) profitable or not. Minimum Business Tax paid by an entity during the year can be deducted from actual income tax payable when filing Annual Return of Income and Tax Payable for that year if the actual tax liability calculated on the Annual Return of Income and Tax Payable (to be filed on or before March 15 of the subsequent year) is greater than the Minimum Business Tax paid during the year. If the actual tax liability (calculated on the return to be filed on or before March 15 of the subsequent year) is less than $60,000, the entity would not be entitled to a refund of Minimum Business Tax already paid. Individuals who operate a trade, profession, vocation or business that has gross revenue* in excess of three million Jamaica dollars (JMD$3,000,000) are also required to pay Minimum Business Tax of sixty thousand Jamaica Dollars (JMD$60,000) each year, to be paid in two equal installments June 15 and September 15 each year. *Gross Revenue in relation to an individual means the statutory income of the individual other than: income subject to tax at the nil rate under section 30(1) of the Income Tax Act (tax free threshold for individuals); and income from emoluments ( that is, income from employment such as salaries, wages and related income). Minimum Business Tax paid by an individual during the year can be deducted from actual income tax payable when filing Annual Return of Income and Tax Payable for that year if the actual tax liability calculated on the Annual Return of Income and Tax Payable (to be filed on or before March 15 of the subsequent year) is greater than the Minimum Business Tax paid during the year. If the actual tax liability (calculated on the return to be filed on or before March 15 of the subsequent year) is less than $60,000, the entity would be entitled to a refund of the amount by which Minimum Business Tax paid exceeds the actual tax liability. If the amount of the excess is not refunded, it may be carried forward and credited against the income tax (not the Minimum Business Tax) payable by the individual in the subsequent year. For information on this and other developments, contact AMCS Jamaica Limited. Tel (876) 331-8202 Fax (876) 906-7423 Email: amcsjamaicaltd@gmail Location: 22B Old Hope Road, Kingston 5, Jamaica W.I.
Posted on: Mon, 01 Sep 2014 18:35:00 +0000
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