Success Lifestyle Magazine Issue 9 June 2021 - Page 10

What forms are involved in filing your taxes in Jamaica as a sole trader ?
What are some items that would be tax exempt if I operate my business from home in Jamaica ?
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Tips for Filing Taxes in Jamaica
Camile Clarke
What forms are involved in filing your taxes in Jamaica as a sole trader ?
The main documents used are the SO4 and the SO4a . Sole traders file using an SO4 and SO4A . The SO4 and SO4A must be filed by March 15th annually .
There are also quarterly SO4A filings if your sole proprietorship hasn ’ t reported a loss on the SO4 .
Sole traders without registered businesses should still file taxes using these forms . Speak with a Tax Administration of Jamaica ( TAJ ) representative for more details .
What are some items that would be tax exempt if I operate my business from home in Jamaica ?
One of the biggest mistakes Shana ’ s clients make is assuming that everything is tax deductible . They may put grocery bills , the full amount of their utility bills , the full amount of their rent and so on . The only tax deductible items are business related expenses .
Since expenses reduce income ( and therefore taxes paid ), there ’ s a tendency to ‘ throw ’ everything onto the tax form . That ’ s a big no-no !
For utility bills , you can only deduct up to 40 % of the bills .
For rent , you can only deduct the portion of rent represented by the square footage of your office space .
Your car payments , insurance , and gas bill can ’ t be deducted if your car isn ’ t solely being used for business . You have to prove the business nature of your movements with the car .
Issue 9 : June 2021

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