Entrepreneurs who operate micro, small and medium-sized enterprises (MSMEs) were recently brought up to speed about the benefits of filing and paying their annual business taxes on time.

During a recent Sagicor Bank tax compliance conference held at Jamaica Pegasus hotel in Kingston, financial institution and Tax Administration Jamaica (TAJ) experts underscored the need for payments to be submitted ahead of the March 15 deadline, if MSMEs are to reap the rewards of tax compliance benefits.

“Tax compliance is essential for companies to be able to list on the Jamaica Stock Exchange and raise funds from investors. In the due diligence process we will review your audited financials, we will talk about the corporate governance of your company, and of course you have to be tax-compliant,” said Mischa McLeod Hines, vice-president of capital markets at Sagicor Investments.

According to Tanya Sloley, assistant vice-president of cards and payments at Sagicor Bank, tax compliance is also a necessity for clients when accessing business loans and receiving credit cards.

She said that businesses with employees can also benefit from the Employment Tax Credit (ETC) when they file and pay their taxes on time.

“This credit is applied when businesses file and pay monthly payroll (SO1) on time. They will receive, as credit, the payment made for NIS, NHT, education tax against the income tax due. This can offer up to a 30 per cent relief, effectively giving businesses a tax rate of 17.5 per cent — down from 25 per cent,” she stated.

Commissioner general of TAJ Ainsley Powell, in encouraging businesses to reach out to the tax office during the early stages of their business development, said that the offices are ready and open for consultations.

“One of the first things that entrepreneurs should do when they start businesses is to come to us. We don’t want persons to have the experience of starting a business, then coming to us for certification years later and the assessment reveals that they have years of back taxes,” he said.

Michael Willacy, vice-president for corporate, SME business banking and strategic business development at Sagicor Bank, reminded conference attendees that they can also receive additional information on taxes and other business training from the bank’s business resource centre.

“This centre is a partnership between us and the Jamaica Business Development Corporation (JBDC), and we offer technical skills training; business advisory services; training in marketing, project management; as well as assistance with tax compliance,” he stated.