Withholding Tax on Specified Services
12 Sep 2015
The Government through Tax Administration Jamaica (TAJ) will, effective September 1, 2015, implement a Withholding Tax on Specified Services (WTSS) at a rate of 3%. These services include: Accounting Auditing Catering Consultancy Decorating Engineering (architectural, electrical, mechanical and structural) Entertainment Information Technology Janitorial Laundry Legal Landscaping Management Repairs or maintenance Rental or leasing of motor vehicles or equipment Transportation, haulage or tours Any other service specified by the Ministry by order published in the Gazette National Commercial Bank Jamaica Limited and certain of its regulated subsidiaries (“NCB”) is registered as “Tax Withholding Agents (TWAs)” to withhold the 3% tax. NCB’s obligations as a TWA will include: Deducting 3% from each payment for specified services costing $50,000 and over before GCT. Deducting 3% of the aggregate amount before GCT from the final invoice, where there is a series of invoices of less than $50,000 each, but aggregating to $100,000 or more within a 30 day period. Deducting 3% from each instalment where an invoice over $50,000 is paid in instalments. Filing and paying the tax withheld to the TAJ by the 14th day of the month following the month in which the tax deducted from the payment. Issuance of a Withholding Tax Certificate to the service provider that will convey the following information: Name of Service Provider Tax Payer Registration Number (TRN) Address Nature of Service(s)provided Date of Invoice Invoice Number Value of Service Payment Amount Income Tax Withheld Please note that our relevant documents and processes will be revised in accordance with these new requirements. Kindly refer to the TAJ website at www.jamaicatax.gov.jm for additional information.
