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Thursday, June 17, 2021

Tax skilled urges small companies to maintain good information

Taxpayer training officer on the Tax Administration of Jamaica (TAJ), Antoinette Anderson has shared that the important thing to efficient submitting of 1’s taxes is environment friendly record-keeping.

“Your record-keeping doesn’t should be a strong and hi-tech system, it merely must maintain an correct document of your earnings and your bills and might be so simple as a receipt e book or retaining a replica of all of your purchases (and many others.),” Anderson instructed a latest on-line seminar, hosted by the JMMB Small and Medium-Sized Enterprises (SME) Useful resource Centre.

She additional identified that good record-keeping of the related paperwork,  resembling invoices, banking transactions, receipts and utilizing good accounting rules to handle expenditure and earnings, can help entrepreneurs to extra precisely decide the quantity of tax payable to the related authorities, along with aiding with the general monitoring of enterprise operations.

She additionally reminded SMEs that along with this being good follow, it’s necessary by legislation to maintain enterprise information for at least six years.

This clear monetary administration precept is important, towards the background of the self-reporting method utilized by the TAJ, whereby the burden is positioned on the enterprise proprietor to pay the related taxes, based mostly on the enterprise’ revenue, the place relevant.

The taxpayer educator underscored that enterprise homeowners have each a proper and duty to know the info regarding the submitting and reporting of taxes.

She, due to this fact, inspired SMEs to succeed in out to the TAJ, for the required assist and the varied accounting specialists, within the preparation of economic statements and subsequent submitting.

As the federal government seems to alter the date when earnings tax returns are due from March 15 to April, as of 2022, the data of submitting taxes stays important for SMEs.

In encouraging entrepreneurs to be tax compliant and maintain good information, Anderson outlined that the method of submitting the required taxes gives spill-off advantages, together with larger entry to financing (as monetary statements could be present) and different technical assist, as their enterprise grows.

All firms, organisations, self-employed individuals, in addition to employed individuals with further sources of earnings, are required to file all returns on-line through TAJ’s on-line portal at www.jamaicatax.gov.jm.

That is in step with an elevated deal with digital assist for micro, small and medium enterprises (MSMEs) provided by means of the TAJ’s annual Particular Taxpayer Help Programme (STAP), to help MSMEs in assembly their on-line submitting obligations. The web submitting will even permit companies to effectively make fee, whereas limiting the necessity for face-to-face interplay, particularly in gentle of the COVID-19 spikes lately.

The taxpayer educator, in detailing the varieties of taxes relevant to enterprise homeowners, shared that: Nationwide Insurance coverage Scheme, Nationwide Housing Belief and Schooling tax and earnings, if above the edge of roughly $1.5 million, are relevant for self-employed people or sole dealer operators. She additionally reminded enterprise homeowners, “If you find yourself a sole dealer, you’re an entity in itself, so each supply of earnings should be reported in your SO4 (type)…so you need to report each gig you might have (and the corresponding earnings).”

The place an organization has staff whose phrases of employment are based mostly on contract of service or full-time employment, the enterprise proprietor is required to pay over these related taxes (NIS, NHT and Schooling taxes) and the corporate’s matching contribution to the TAJ; along with its revenue tax.

Moreover, basic consumption tax (GCT) is often relevant to firms with earnings above $10 million for the yr, apart from firms that by the character of their enterprise operations makes them exempt. Corporations may also apply to the tax administration to obtain their tax compliance certificates (TCC) in the event that they pay GCT.

Shani Duncan Falconer, senior company supervisor, JMMB Group SME Useful resource Centre

The JMMB Financial institution-hosted seminar is in keeping with the corporate’s monetary inclusion and built-in monetary partnership method.   As a part of its technique, the JMMB Group intends so as to add worth to its small enterprise shoppers and the broader sector by means of the supply of the monetary partnership, sources, modern monetary options and a community, all through these companies’ life cycles; thereby offering essential assist for the expansion within the sector, and filling the gaps that at present exist within the monetary sector.

Shani Duncan Falconer, senior company supervisor, JMMB Group SME Useful resource Centre shared, “These month-to-month public seminars are designed to encourage SMEs to be extra intentional about their enterprise success; take actionable steps; establish greatest practices and sources; and create and/or revise plans, in order that they will put the required infrastructure, insurance policies, methods and experience in place, for his or her sustainability and progress.”

SMEs fascinated with taking part within the seminar collection can go to JMMB Group’s social media pages for particulars.

These on-line seminars are well timed and related, as Jamaica has seen a rise within the variety of companies being registered over the past 2 years, reflecting the expansion potential of the MSME sector.

In response to the Corporations Workplace of Jamaica, entrepreneurs and traders in 2020 registered 12,809 enterprise names and three,935 firms. This displays a rise of 12 per cent for enterprise names and three per cent for firms over the earlier yr, 2019; which noticed a document improve of a 100 per cent uptick within the variety of firms being registered.

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