WITH just a few days remaining for companies, self-employed persons and employed persons who earn additional income to file their income tax returns, here are 10 tips to make sure it’s done right the first time.

1. DUE DATE

The due date for filing income tax returns is March 15. Remember you are required to file your annual return for 2012 and estimated return for 2013.

2. APPLY INCOME TAX CHANGES TO 2013

As of January 1, 2013 the income tax threshold is increased to $507,312 for individuals and the corporate income tax rate reduced to 25 per cent for unregulated companies. Remember these changes must only be applied in relation to the tax year 2013.

Companies regulated by the FSC, OUR, BOJ and MoFP still pay at the rate of 33 1/3 per cent.

3. USE CORRECT FORM

Using the incorrect form may have an implication on how you or your business is categorised. This is particularly important for pensioners or employees, who have no other source of income and are taxed at source, but are claiming a refund on tax paid in excess of their actual liability. Individuals who are self-employed or employed with other sources of income should use the IT01 form, while individuals whose only income is taxed at source, e.g. PAYE or withholding tax, should use the IT05 form. Companies use the IT02.

4. COMPLETE FORM PROPERLY

It is important that all relevant sections of the income tax form are filled in properly. Basic information such as Name, TRN and Address are important. It is also vitally important that accounting information, such as gross sales/income, total expenses, net profit, deductions and tax computation are ALL filled in on the form.

5. FILE ONLINE

It is more convenient and cost effective to file tax returns online, instead of having to wait inline at a tax office. Filing online through the Jamaica Tax Portal (JTP) at www.jamaicatax-online.gov.jm allows for 24/7 access. To file online, a one-time registration is required. Contact the TAJ Customer Care Centre at 1-888-TAX-HELP (829-4357) for details.

6. FILE EARLY

File early to avoid the last minute rush. Traffic in the tax office, as well as on the JTP gets busier the closer it gets to the March 15 income tax deadline.

7. KEEP RECORDS

It is in your best interest to keep good records as these can benefit you. Well-kept records may shorten the length of time for an audit; remind you about deductible expenses and credits that you are entitled to; verify your business expenses; keep you informed about the financial position of your business.

8. FILE RETURN EVEN IF YOU HAVE A LOSS

All businesses, whether operated as an individual, partnership or company, are required to file a tax return even if the business makes a loss. In fact, it is in your interest to report the loss, as currently the law allows for business losses to be carried forward indefinitely. This may be used to off-set future profit.

9. PAY SOMETHING IF NOT THE FULL AMOUNT

File your return on time and pay as much as you can then, allowing you to cut down on interest charges. While you have to make a “down payment” to the TAJ on or by the March 15, you will have to pay interest to the TAJ on what you owe, plus any penalties.

Remember also that in relation to the estimated return for 2013, payments are due quarterly, March 15, June, 15, September 15 and December 15.

10. SEEK HELP

If you are not sure how to go about filing your returns or you need assistance, the TAJ is still offering its annual Special Taxpayer Assistance Programme across the island. This programme is primarily to assist businesses earning less than $3 million. Information is also available in the income tax hub on the TAJ website https://www.jamaicatax.gov.jm. Persons may also contact the Tax Administration Customer Care Centre at 1-888-TAX-HELP (829-4357) for guidance.