Taxpayer education officer from Kingston, Kiteshia Simpson, notes that often, self-employed persons don't know that they need to file tax returns whether they make a profit, or whether they have actually started operations after registration.

"Even when you have just started and there is nothing happening, you need to file. If you have made no profits, you can file what is called a 'nil return'," she explains.

Steps new businesspersons need to take in preparation for filing a return on the required dates:

1) Register the business

Whether individuals, partnerships, companies or other organisations, register the business.

Individuals: Register your business name at the Companies Office of Jamaica.

Companies: Submit articles of incorporation for assessment and stamping to the TAAD Stamp Duty and Transfer Tax Division; register your company at the Companies Office of Jamaica.

Partnerships and other organisations: Register your partnerships or organisation at the Companies Office of Jamaica.

2) Register with NIS

A National Insurance Scheme (NIS) payment card or clearance letter will be needed to apply for a taxpayer registration number (TRN) or branch extension.

3) Apply for a TRN

The business needs to obtain a TRN, or an extension to the individual's TRN. This can be done at any collectorate nationwide, except Cross Roads and King Street, or at the Tax Registration Centre.

4) Register with NHT and HEART

If the business employs workers, it will need to register as an employer with the HEART Trust/NTA and pay contributions.

Self-employed persons and all employers are required to be registered and make contributions to the National Housing Trust.

5) Register for GCT

All persons engaged in a taxable activity must apply for registration under the General Consumption Tax Act at any collectorate.

6) Apply for a Trade Licence

A trade licence is issued to retail and wholesale dealers with a designated place of business with liberty to store in and deliver out of public and other warehouses, also to persons carrying on the business of an auctioneer or commission agent, or proprietor of a newspaper.

The licence fees applicable are based on an approved band for retailers, determined by their annual turnover, and specified rates for those licensed to carry on a business.

The PAYE system allows employers to deduct income tax and education tax from employees' income on behalf of the Government and make payment to the relevant tax collectorate.

Income tax is levied on an individual's statutory or chargeable income. It is payable by all employed persons. The tax on income is to be deducted and paid over by the employer.

Education tax is also deducted by employers from emoluments paid to employees. All taxpayers who are gainfully employed are liable to this tax.

The following employers are exempt from paying employer's education tax:

Ministries or departments of Government.

Parish councils.

Kingston and St Andrew Corporation.

The University of the West Indies.

HEART contributions are only paid by employers whose total gross taxable monthly emoluments exceed $14,444.

compulsory contribution

NIS is a compulsory contribution to fund social security to which both employer and employee contribute. It offers some financial protection of the worker and his/her family against loss of income arising from injury on the job, sickness, old age and death of the breadwinner.

Self-employed persons are also required to contribute.

Contributors to the NHT include employed persons, self-employed, voluntary contributors and employers.

Contributions are pooled and used to fund loans to beneficiaries, housing construction and short-term investments.

Employee contributions are refun-dable after eight years if no benefit is accessed by the contributor.

avia.ustanny@gleanerjm.com