Revised IT02 Introduced this Tax Season

Tax Administration Jamaica (TAJ) is advising the public that its system has been reconfigured to accommodate the revised Form IT02 – Return of Income and Tax Payable – [ORGANISATIONS (BODIES CORPORATE)] and the accompanying Schedules 4 & 7. The revised Return comes as changes were made to facilitate a legislative amendment, primarily the introduction of the Corporate Tax Credit which came into effect Year of Assessment 2020, as well as feedback received from both its internal and external stakeholders to address specific pertinent issues, which are intended to enhance the functionality of the forms and schedules.

The revised IT02 reflects changes to some sections of the Return, chief among them being to Section “F”- Tax Computation that has been modified to include the Corporate Tax Credit in accordance with Ministry Paper No/.14/2020: Revenue Measure for Financial Year 2020/2021 which provides an Income Tax credit for regulated and un-regulated companies in the amount of $375,000 where the gross revenue or sales of the company is less than or equal to $500 Million.

Additionally, Schedules 4 and 7 have also been enhanced to allow for the automatic population of the required fields on the IT02 once the details are entered in the applicable schedule. Provisions have also been made on the Schedule 7 to facilitate the repayment of Employment Tax Credit ETC (relevant amount), where necessary.

Organizations are also asked to take note of the new Schedule 1A which has been developed to capture pertinent details from non-financial institutions for the purposes of national reporting by one of the Regulators. However, such entities are not mandated to submit this schedule for year of assessment 2020.

With the change in the legislation, necessary configuration had to be made to the Revenue Administration Information System (RAIS). These are now complete and have been tested and the system is now available for the IT02 Form to be filed online. TAJ has also made the revised forms available to the public for download via its website www.jamaicatax.gov.jm. However taxpayers are reminded that all Returns must be filed online.

Tax Administration Jamaica’s Taxpayer Education Officers and Customer Care Agents are available to provide support to customers to familiarize them with the changes. Additionally, key stakeholders such as the Institute of Chartered Accountants of Jamaica (ICAJ) and other business and professional associations are being engaged.

For further information please contact the TAJ Customer Care Centre 888-829-4357 or visit www.jamaicatax.gov.jm.