Tax Smart: What I Learned About Mastering Business Taxes

As a small business owner, I’ve always known that taxes are a necessary part of running a business. But attending the Sagicor Bank Tax Smart: Taxes Made Simple Workshop gave me an even deeper understanding of what it takes to stay compliant and, more importantly, avoid unnecessary penalties.

At the event, one of the most insightful presentations came from Mrs. Karen Doyley Senior, Assistant General Manager, Taxpayer Service and Education for Western Jamaica at Tax Administration Jamaica (TAJ). She walked us through TAJ’s eServices offerings, and I was impressed. The system is advanced and packed with resources to help business owners file and pay taxes. No more standing in long lines—almost everything can be done, or at least initiated, online, from generating a payment advice to applying for tax compliance certificates.

A particularly eye-opening takeaway was about business registration and closure. When you register a Limited Liability Company (Ltd) using what’s commonly known as “The Super Form,” the Companies Office of Jamaica (COJ) automatically notifies TAJ that you’ve started a business. But here’s the catch—if you later close the business, COJ does not inform TAJ. That means you must separately notify TAJ, or else you might continue receiving tax notices for a business that no longer exists. Lesson learned: Keep TAJ in the loop when making changes to your business.

Small business owners had lots of questions for the presenters.

Speaking of tax notices, as of 2024, filings before 2018 are statute-barred, but the TAJ system will still generate a notice. The takeaway? Never ignore a tax notice. If you get one, deal with it immediately. Ignoring it could mean unnecessary complications down the line.

Another important point: Even if your business has no transactions, or your sales are below the GCT threshold for a period, or you simply don’t owe taxes, you still have to file a tax return. Depending on the circumstances, it may be a nil return, but you must file regardless. Otherwise, you’ll be hit with penalties. And if you fail to file your annual company returns, there’s a $5,000 per month penalty—a costly mistake that’s easily avoidable.

Thankfully, TAJ offers free assistance through the Special Taxpayer Assistance Programme (STAP). If your business earns $10 million or less annually, you can access free filing assistance ahead of Tax Day. That’s a game-changer for small business owners, professionals and tradesmen.

Mrs. Doyley Senior also introduced the Special Arrears Settlement Programme (SASP), which launched in January 2025. This initiative waives interest, penalties, and surcharges (IPC) for businesses with outstanding principal taxes—as long as those principal taxes are paid and annual returns are filed by March 31, 2025. Great news for businesses struggling with arrears! However, note that NIS and NHT contributions are not included in this relief programme. Technically, the are not taxes.

Beyond these insights, what really struck me is how much more digital and efficient TAJ has become. They even have a mobile app for processing payments on the go, at least for Android users. Plus, they provide multiple online payment options through direct transfers and major banks. The tax office has come a long way, and while there’s still room for improvement, it’s clear they’re making strides toward modernization.

There was a lot more to learn, but these points stood out to me.

If you need assistance, call 1-888-TAX-HELP or visit www.jamaicatax.gov.jm to get information straight from the source.

The Importance of a Good Accountant

The second standout presentation came from Mr. Kerwin Hamil, Managing Partner at KDH Chartered Accountants. If there’s one major takeaway from his talk, it’s this: Get a good accountant. Better yet, get a good tax accountant—or if possible, a CFO. While hiring financial expertise might seem expensive upfront, in the long run, you’ll save money and avoid costly mistakes with proper tax planning.

Mr. Hamil also emphasized the importance of verifying your accountant’s credentials. Before hiring someone, visit the Institute of Chartered Accountants of Jamaica (ICAJ) website to ensure they are legitimate and in good standing. Both he and Mrs. Doyley Senior acknowledged that good accountants are hard to find, and because annual returns are due at the same time, it puts strain on the system. That’s why planning ahead is critical.

The Bottom Line: Plan, File, and Stay Compliant

The key message from the workshop? Failing to file will cost you. ALL companies, organizations, self-employed individuals, and employed persons with additional income must file their tax returns online—even if they haven’t started trading. No filing = fines. Simple as that.

A reminder for all business owners, and myself: 2024 Annual Income Tax Returns and 2025 Estimated Returns are due on March 17, 2025.

Filing your taxes is equally important to paying your taxes.

For those of us juggling multiple responsibilities, staying tax-compliant can feel overwhelming. But thanks to TAJ’s online services and expert advice from seasoned professionals like Karen Doyley Senior and Kerwin Hamil, it’s clear that there are tools and resources available to make the process easier. The more you know, the better prepared you’ll be.

I walked away from the Tax Smart Workshop with one clear thought: taxes don’t have to be terrifying—if you stay informed, plan ahead, and use the resources available, you can keep your business on solid financial footing.

So, have you filed your taxes yet? If not, what are you waiting for?