Thursday's class (April 5, 2012) was
great even though only 10 of us were present from class, that was a plus
because the lecturer wasn't interrupted by unnecessary chatter. Thursday's
topic was build vs buy, we spoke about the advantages and disadvantages of
buying a business and creating a business, and the types of businesses (sole
proprietorship, partnership, corporation, franchises etc).
What really caught my attention was
sole proprietorship businesses this is so because I intend to start a business of
my own soon and also because I recognize that many Jamaicans do not register
their sole proprietorship businesses because of fear of taxation.
The lecture opened my eyes to the
benefits of getting businesses registered particularly sole proprietorship ones
because there are huge benefits available and the taxes aren't has drastic as
people fear. I found a document produced in 2006 by the Ministry of Finance and
Planning titled - Tax Requirements and Procedures in Jamaica from this document
highlights the tax rates for businesses and registered societies which can be
seen below:
Description of Companies and
Registered Societies
Tax
"Where the aggregate value of the assets does not
exceed $50,000 $1,000
Where the aggregate value of the
assets exceeds $50,000 but does
not exceed $500,000 $2,000
Where the aggregate value of the
assets exceeds $500,000 but does
not exceed $1,000,000 $4,000
Where the aggregate value of the
assets exceeds $1,000,000 but does
not exceed $5,000,000 $10,000
Where the aggregate value of the
assets exceeds $5,000,000 but does
not exceed $10,000,000 $15,000
Where the aggregate value of the
assets exceeds $10,000,000 but does
not exceed $50,000,000 $20,000
Where the aggregate value of the
assets exceeds $50,000,000 but does
not exceed $100,000,000 $25,000
Where the aggregate value of the
assets exceeds $100,000,000 $35,000"
When I saw these tax rates I was
shocked because I personally thought it would be more. Most sole proprietorship
businesses will make between 1-5mil per year which means the person will pay
between $4000 to $10,000JM$ per year which to me is very reasonable. I think in
order to get more sole proprietorship businesses registered the government
should publicize this type of information more. To read more about the Tax Requirements
and Procedures in Jamaica you can check out - http://natlaw.com/interam/jm/tx/sp/spjmtx00002.pdf
If you after reading this bit of
information you are interested in registering your own business here is how you
can get started:
Requirements
for Sole Proprietors
A Sole Proprietor (excluding companies) must submit a completed and signed ‘Application for Taxpayer Registration (Individuals) – FORM 1’ with the following:
A Sole Proprietor (excluding companies) must submit a completed and signed ‘Application for Taxpayer Registration (Individuals) – FORM 1’ with the following:
· Valid ID
· National Insurance Scheme (NIS) Card
· Business Name Registration Certificate (BNRC) – if business
has a Trade Name.
If the applicant’s trade name is
different from his given name, the trade name/business name must be registered
at the Companies Office of Jamaica (COJ), under the Business Names Act. If the
individual already has a TRN, ONLY the Additional Information (Individuals)
Form should be completed.
For further information please check
out the Tax Administration Jamaica (TAJ) website at http://www.jrs.gov.jm/home_template.php?page=TaxpayerRegistrationNumber#Requirementsforsoleproprietors
Thanks alot for reading my blog I hope it was beneficial to
you. Leave ur comments and I"ll respond as soon as I can thanks again.
Blog you soon
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