Employment Tax Credit The Employment Tax Credit was introduced late last year as part of the Fiscal Incentives (Miscellaneous Provisions) Act, 2013. The Fiscal Incentives (Miscellaneous Provisions) Act, 2013 (hereafter referred to as “The Act”) became effective January 1, 2014. Under the Act, self employed persons and companies that are not regulated by: the Financial Services Commission, the Office of Utilities Regulation, the Bank of Jamaica and the Minister with responsibility for Finance, shall be entitled to claim an Employment Tax Credit against the income tax chargeable on trading income in any year of assessment, effective January 1, 2014. The amount of the Employment Tax Credit for any year of assessment shall be the aggregate payroll statutory remittances (employer and employee contribution) paid by the employer for each month ending within the assessment period for that employer. [Example Employment Tax Credit for an employer with twelve month accounting period ending December 31, 2014 would be the aggregate of payroll statutory remittances filed each month January to December 2014]. The amount of the Employment Tax Credit that may be claimed by an eligible person (self employed persons and companies not regulated by the aforementioned authorities) against income tax chargeable on trading income in respect of any year of assessment shall be limited to thirty percent (30%) of any tax payable by the eligible person in respect of income, profits or gains of the eligible person arising from: i. The carrying of a trade, profession or vocation by the eligible person; and ii. The rental by the eligible person of a hotel or resort cottage that is licensed as a tourist accommodation under the Tourist Board Act.* *Entities that chose to continue tax incentives under the previous Hotel Incentives Act and Resort Cottages Incentives Act are not eligible for the new Employment Tax Credit. Where the assessment period for an eligible person is a permitted accounting period (accounting year end other than December 31), the income, profits or gains of that person, for the purposes of any claim for employment tax credit for the permitted accounting period ending in 2014 shall be calculated as a fraction of the person’s income, profits or gains for that permitted period. For more information on this and other tax developments contact AMCS Jamaica Limited. Tel (876) 384-5890 Fax (876) 906-7423 Email: amcsjamaicaltd@gmail Location: 22B Old Hope Road, Kingston 5, Jamaica W.I.
Posted on: Wed, 02 Jul 2014 22:30:00 +0000
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