MINISTRY OF FINANCE AND PLANNING 30 NATIONAL HEROES CIRCLE P.O. BOX 512 KINGSTON JAMAICA February 16, 2015 CIRCULAR 3 REFERENCE NO: 108/144 DIVISION: PUBLIC EXPENDITI LICY AND COORDINATION il Permanent Secretaries Heads of Departments Chief Executive Officers Chairmen of Boards Re: Withholding Tax Certificates for General Consumption Tax (GCT) The attention of Permanent Secretaries, Heads of Departments, Chief Executive Officers and Chairmen of Boards is invited to the procedures herein regarding Withholding Tax Certificates (WTC) in respect of GCT. 1. Issuing of WTC from the Jamaica Tax Portal (1.1) WTC must be issued by Tax Withholding Entities (TWE) through use of the Jamaica Tax Portal. (1.2) Permanent Secretaries, Heads of Departments, and Chief Executive Officers shall designate in writing, persons authorised to generate WTCs as well as persons authorised to sign the Certificates. 2. When (2.1) The WTC must be generated and issued on receipt of a supplier’s invoice where the following conditions have been satisfied: (@) the goods and services are certified by an authorized officer of the TWE. as being properly received; and (b) The invoice is checked and verified as being correct by an authorized officer of the TWE.(2.2) 23) WICs must be issued only for valid supplier’s invoice. Any discrepancy or problem with an invoice must be resolved and where necessary the invoice cancelled and replaced by the supplier before a WTC is issued. The WTC must be issued within fifteen (15) days of receipt of invoice from the registered taxpayer (ie. supplier) whether the invoice has been fully paid, partially paid or is unpaid by the MDA. 3. Who is to Issue the WTC? GA) G2) 4. 4.1) (42) (43) (44) Public officers designated in writing at (1.2) by the Accounting Officer, Chief Executive Officer or Head of Department as being responsible for generating and signing WTCs must be an appropriate officer from the Procurement, General Services Unit of the TWE or those officers engaged in the checking and verification of receipt of goods and services and/or the checking and verification of invoices. ‘The Accounting Officer, Chief Executive Officer, Head of Department must ensure that the work of officers designated to issue and sign WTCs are subject to an independent check on a periodic basis. ‘All complaints from suppliers of late or non-receipt of WTCs, must be immediately referred to the Accounting Officer, Chief Executive Officer, or Head of Department. The Accounting Officer, Chief Executive Officer, and Head of Department must, for each complaint, order an investigation and receive a report within two (2) weeks of receipt of the complaint. Where the investigation reveals that the complaint is inaccurate or invalid, the supplier must be advised, accordingly. Where the investigation revealed that the complaint is valid, the Accounting Officer, Chief Executive Officer, or Head of Department shall put appropriate measures in place to ensure the timely issuing of certificates. 5. The GCT Returns - Form 4F Gl) (5.2) ‘At the end of each month, following the month the WTCs were issued, the TWEs shall generate and submit electronically, the GCT Returns - Form 4F by using the Jamaica Tax Portal. ‘The Form 4F captures all the GCT withheld for a month and accordingly reflects the total amount payable to TAJ for GCT for that month, This must be checked in detail for accuracy. Any discrepancy found must be referred to TAJ for examination and resolution.(83) The Form 4F must be submitted no later than the date stipulated at (5.1). Once submitted, the TWE acknowledges its GCT tax liability for the month which must be settled within the stipulated deadline. (NB. The TWE’s Tax Compliance Certificate (TCC) shall be subject to the settlement of this liability, in addition to all other tax liabilities) (5.4) The payment of the GCT, based on the Form 4F shall be the responsibility of the Principal Finance Officer/Head of Accounts Section of the TWE, notwithstanding circumstances where the actual payment is done by the Accountant General's Department. Permanent Secretaries, Heads of Departments and Chief Executive Officers, must ensure that this Circular is brought to the attention of all relevant officers within their Ministries/Departments/Agencies and Public Bodies. Devon Rowe Financial Secretary