Owners of Small/Medium Sized Enterprises (SMEs) need to familiarize themselves with the recently tabled Fiscal Incentives [Miscellaneous Provisions] Act 2013 that will take effect January 1, 2014.
diGjamaica would like to highlight the key points to business owners however it is your responsibility to get your tax adviser to inform you on how this new piece of legislation can benefit you.
The Bill introduces what is to be called an Employment Tax Credit.
The Employment Tax Credit will be claimable against Income Tax that is payable for the year under assessment. In some cases the credit may reduce income tax payable on income from trade/profession/vocation by up to 30%.
However, the credit will not reduce income tax payable on non-trade income such as income from interest payments, dividends, capital gains or profit investment.
The Employment Tax Credit is the sum of the following contributions paid by employers: Education Tax, Heart, NHT and NIS.
For businesses to be eligible for the Employment Tax Credit the relevant statutory contributions and SO1 forms must be paid and filed on time including all estimated taxes and relevant tax returns. In other words, only tax compliant businesses/individuals will be eligible.
Lastly, it is important to note that the Employment Tax Credit cannot be carried forward to another year of assessment or be claimed as a refund.
Click here to read the full document – Fiscal Incentives Bill_ October 29_2013 – FINAL.
To find out more about the Omnibus Incentive Act read here.