Tax Administration Jamaica (TAJ) rolled out its Employment Tax Credit (ETC) Webinar Serie

Tax Administration Jamaica (TAJ), through its Large Taxpayer Office (LTO) rolled out the first in a series of Employment Tax Credit (ETC) Webinars on October 6, 2022, in an effort to address identified knowledge gaps and to clarify misconceptions of clients. The session was led by TAJ subject matter experts from the LTO and Technical Specialist Unit, with the objective of sensitizing participants of the general legislative provisions and policy guidelines governing ETC, while providing guidance and updates. Emphasis was placed on: 

• eligibility criteria for the claiming of that credit
• sources of income to be included in computing the allowable amount
• calculation of the credit using the Income Tax Schedule
• the circumstance that gives rise to the need for of ‘claw-back’ as well as the determination of the amount.

The expected outcome is that employers will be empowered to accurately compute the amount of their entitlement and realize the benefits associated with it.

Facilitated by Colleen Williams - Technical Specialist, the webinar was attended by over 140 participants from large businesses. The general sentiments of the participants are that the session was beneficial to them as they were exposed to the various facets of the subject matter. One participant who recently joined her firm remarked, “This is my first time being exposed to ETC, it (the session), was very beneficial, with a little more practice I will definitely get the full hang of it”.

Subsequent sessions will be held for medium and small business operators. TAJ will continue to use various mediums to educate and inform taxpayers about amendments and changes to policies and services.

Employment Tax Credit is an incentive which results in a reduction of the income tax payable by the eligible beneficiaries based on applicable monthly payroll declared and paid on time for NIS, NHT, HEART and Education Tax. The ETC came into effect by way of the Fiscal Incentives (Miscellaneous Provisions) Act, 2013, and was operationalized on January 1, 2014.