The National Housing Trust (NHT) is a Jamaican government agency that started operations in 1976. They provide low-cost housing to low- and moderate-income individuals and families. The NHT provides housing alternatives like apartments, townhouses, and single-family homes, as well as home repair loans and subsidies. National Housing Trust aims to increase and improve the supply of available housing in Jamaica. They aim to provide monetary assistance to the neediest of our Contributors who want to build and buy their homes. Employer and self-employed deductions, as well as employee and voluntary contributions, are the primary sources of funding for the NHT.
To qualify for an NHT-funded home, you must meet certain eligibility requirements. Some of these include being a Jamaican citizen or permanent resident, being 18 years or older, having a stable income, and not owning any other property (either individually or jointly). As a member of the NHT, you must pay a membership fee and make regular contributions to the trust. Contributors of NHT may or may not be Jamaican citizens, however, they must be at least 18 years old but not yet retired and earning at least the minimum salary. As a contributor, it is your responsibility to inform the National Housing Trust of changes in your employment status. These contributions made fund the construction of new homes and other housing-related projects. In addition to housing, the NHT provides a variety of additional services, such as financial literacy training and homebuyer education.
SELF-EMPLOYED CONTRIBUTORS
According to the National Housing Trust Act, a Self-Employed individual is anyone who is gainfully employed in Jamaica and is not employed by someone (other than himself/herself) or a firm (that he/she does not own). In Jamaica, self-employed individuals fall into one of the seven categories listed below:
- Individuals who work for themselves and may or may not employ others, or who have employees who are not obligated by law to make NHT contributions.
- Individuals who are already earning and contributing to a company’s or agency’s normal payroll but are also engaging in additional income-generating activities.
- Private consultants/contractors employed by registered firms (that is, individuals employed under a CONTRACT FOR SERVICE who, for example, provide their tools and other resources to accomplish the job).
- Directors of corporations who get Director’s Fees.
- Jamaicans who are working on a work permit in another country but are neither a permanent resident nor citizen of that country (Conditions apply);
- Domestic workers, gardeners, and local caregivers who work in their employers’ houses;
- Jamaican residents who are employed by Embassies, United Nations Agencies, High Commissions, and Consulates in Jamaica.
Requirements
Self-employed individuals can join the National Housing Trust (NHT) in Jamaica as special contributors. To contribute to NHT, you must complete the tax administration Jamaica SO4A form. Once you are self-employed with a registered business/company (a business that is registered with the Companies Office of Jamaica (COJ), you must obtain an employer TRN for the firm before completing the SO4A form. However, if you do not have a registered business/company, you may use your NIS number and TRN. To apply to NHT as a special contributor, you must complete an application form and provide supporting documentation such as proof of income and identification. You can collect an application for. at any NHT location or download it online from the NHT’s website.
If you fall into the Self-Employed category 1 – 5, you must contribute 3% of your salary. If you belong to the 6-7 category, you will be required to contribute 2% of your income. Please keep in mind that if your income changes after you have registered, you must visit a TAJ office and update your account; failing to do so may result in penalties. Self-employed individuals are expected to submit Annual Returns, and our Compliance Officers may seek further papers (such as Income/Expenditure documents, Income Tax Returns, and so on) in specific situations.
As a special contributor, you will be eligible to apply for NHT-funded housing and other benefits, such as home improvement loans and grants. However, the allocation of housing and other benefits is based on several factors, including the contributor’s income level, the size of their family, and the availability of housing units.
Payments
Contributions paid to the National Housing Trust are made quarterly (March, June, September, and December) at the Tax Administration Jamaica (TAJ) by the 15th of the last month in each quarter; however, contributors can choose to pay monthly using a credit or debit card, check, or cash. Payments can be made online using the TAJ Online Portal, but they must be accompanied by the Payment Advice form.
Annual Returns
Self-Employed contributors must submit their annual returns. To do this, the contributors must file an estimate of projected income, S04A, by March 15th of each year. This estimate will calculate the year’s quarterly payments while the S04 will report real income at the end of the year. If the actual income is higher than the estimate submitted at the start of the year, they will compute the HT contribution and pay the difference. If the actual revenue is less than the estimate at the start of the year, they will compute the NHT contribution and apply the difference to the current year. The Tax Administration of Jamaica (TAJ) accepts the manual filing of S04s and S04As.
ALL self-employed persons with employees must submit their Annual Return (S02) electronically. This Return is due electronically on the Tax Portal https://www.jamaicatax.gov.jm/ by March 31 of the following year. Do not file returns manually.
Benefits and Consequences
There are various advantages and consequences to complying or not complying with the NHT for self-employed individuals in Jamaica.
Benefits
- Self-Employed Contributors who are compliant (fully registered and up to current on payments) may be eligible for loans to help with the construction, purchase, repair, or improvement of a house.
- Contributors are entitled to reimbursement (with interest) on payments made to the Trust in addition to housing benefits.
- Individuals who comply will be able to get a Clearance Letter from the NHT, which is required for a company to be awarded a Tax Compliance Certificate (TCC).
Consequences
- There is already a 20% annual penalty charge for delayed payment submissions. Furthermore, where payments are judged late (typically for more than a year), a 10% surcharge on the penalty plus any arrears is charged.
- Employers who fail to provide the information requested by the NHT concerning contributions or Annual Returns may be charged $30,000 or three times the amount of the unpaid payments, whichever is greater.
Clearance Letter/Tax Compliance Certificate
A Clearance Letter is a document provided by the NHT to a corporation or individual that confirms and states the status of that contributor’s contribution payments, Annual Returns filings, and arrears (if any). A Tax Compliance Certificate (TCC) from Tax Administration Jamaica is necessary.
A TCC is a document used as proof to show that tax obligations and wage-related statutory deductions are paid. A TCC is necessary for the acquisition of certain licenses, citizenship, work permits, security firm registration, tendering for certain contracts, and importing.
For self-employed persons to obtain a clearance letter, they should visit one of the NHT’s locations. They must submit the following documentation to one of their compliance officers:
- Tax Registration Number (TRN) Card
- National Insurance Scheme (NIS) Card
- Valid Identification (National/Voter’s ID, Passport, Drivers license)
- SO4A or SO4 form for the tax year (where applicable)
- Purpose of Clearance
VOLUNTARY CONTRIBUTORS
An Overseas Voluntary Contributor is a person of Jamaican heritage who is either a permanent resident or a citizen of another nation and wishes to register with the NHT. To register, please fill out the “Voluntary Contributor’s Application Form” (DO NOT use correction fluid on the Form).
Please keep in mind that work permit holders are not considered Overseas Voluntary Contributors. They must file their returns (SO4 & SO4A) with Tax Administration Jamaica (TAJ) because their domicile address is in Jamaica. Pensioners who want to donate to the NHT can do so by registering as Voluntary Contributors.
Voluntary Contributors must have paid 104 weeks (2 years) of contributions to be eligible for loans, with 52 weeks (1 year) paid in the year preceding the date of application. Voluntary Contributors may seek refunds of their payments, paid directly to them in Jamaican dollars. The return will go into the principal of the Contributor’s loan account if he or she is an NHT Mortgagor.
Requirements
To receive a TRN, you must first register with the Tax Office, as this is necessary during the registration procedure. After completing the application form, you should come in for an interview (if you are unable to attend an interview, you must provide a letter of authority for your representative/agent to act on your behalf. A notary Public or Justice of the peace must sign, stamp, and date the letter of authority. You should submit the following documents in order to conduct your interview:
- Tax Registration Number (TRN) Card
- National Insurance (NIS) Card
- Valid Photo Identification (such as National Identification, Driver’s License, or Passport)
- Initial Monthly Payment- (3% of the proposed monthly income stated on the application form)
- Proof of Overseas Residence- (Permanent Resident Card, Indefinite Card, Passport for Country of Residence)
- Proof of Age- (Birth Certificate, Passport, or Driver’s Licence)
- Photocopies of any of these documents will need to be signed, stamped, and dated by a Notary public (for overseas residents) or a Justice of the Peace (for local residents).
Payments
Voluntary Contributors
You should make contributions on a monthly basis as a Voluntary Contributor.
Other Contributors
Payments will begin upon registration, and contributors assessed for periods working in Jamaica prior to departing overseas are responsible for any outstanding sums, including interest. Voluntary Contributors, on the other hand, will not pay interest on contribution principal arrears. Your declared income and your monthly contribution payments, should remain in the currency in which they are received. Each payment can be made by cheque or cash, accompanied by a Deposit Voucher, or by credit card online.
You can have someone make the payments on your behalf if you are an overseas Contributor. If you want the NHT to share information with your bearer, he or she must submit a letter of authorization signed, stamped, and dated by a Notary Public or Justice of the Peace (J.P.). Overseas contributors may also pay online with a credit card or by setting up a standing order with their bank. All payments are due fourteen (14) days after the month’s end. Be reminded that as a contributor, you must notify us of changes in your work position as soon as possible.
If you are an NHT mortgagor, arrears payments will deduct from your mortgage payments in accordance with the mortgage agreement. Some of our facilities are Service Centers and do not accept cash payments (only debit or credit cards). Please refer to our Branch Listings to find out where our Service Centers are located. If you have never contributed to the NHT, you will have to wait two years after registering to receive benefits. It is not a requirement to pay up the first year in a large payment. Nonetheless, you must wait two years before applying for housing assistance.
If you have previously contributed, you just need to pay for one year to apply for a loan. You can pay the year in one large payment, but you must wait one year before applying for housing benefits.
Benefits and Consequences
Benefits
Voluntary Contributors can reap various advantages by contributing to the NHT. The key advantage is the ability to obtain housing benefits, such as loans to help with the construction, purchase, repair, or improvement of a home. Contributors can receive reimbursement (with interest) on payments made to the Trust in addition to housing benefits. More information about this benefit is available on the NHT website under the heading Contributions Refunds. Voluntary Contributors have access to Tax Compliance Certification as well.
Consequences
Individuals who do not pay their contributions will be ineligible to apply for housing benefit loans or contribution refunds.
Frequently Asked Questions
Voluntary contributors must continue to make contributions even after receiving a loan from the National Housing Trust. If their contributions fall behind, the amounts owed will be taken from the mortgage installments. Borrowers who are Voluntary Contributors would have their contribution arrears taken from their mortgage payments.
Voluntary contributors must have made at least 104 weeks (2 years) of payments, 52 weeks of which must have been paid in the 52 weeks preceding the date of application. For example, if you contributed for five (5) years before moving, you must contribute for at least an extra year after registering as a voluntary contributor before being able to apply for a loan. This new requirement was implemented lately. Previously, Voluntary donors had to have made at least 52 weeks of contributions, with at least 13 payments made in the 26 weeks preceding the loan application.
Voluntary contributors, like all other NHT contributors, are entitled to reimbursement of their donations eight years after they were made.
No, under Jamaican law, everyone between the ages of 18 and 65 who earns at least the minimum wage is obligated to contribute to the NHT.
No, you cannot get a special contribution to refund if you migrate to another country for Jamaica.
The first step is to register as a self-employed individual. A Compliance Officer will conduct an assessment and notify you of the monthly amount you are expected to contribute as well as any back money you may owe that must be cleared up.
