Income Tax Threshold Increases Thursday
An increase in the income tax threshold is to take effect on January 1, moving tax-free income from $507,312 per annum to $557,232 per annum.
Tax Administration Jamaica (TAJ) said in a release that the increase in the threshold means that the corresponding tax-free portion to be used by employers in making periodic payments is $10,716 weekly; $21,432 fortnightly; $46, 436 monthly; and $139,308 quarterly.
"The public is reminded that income in excess of the threshold will continue to be taxed at 25 per cent," TAJ said.
With the increase in the threshold, the tax paid per annum by each individual will reduce by $12,480, while the net effect for each individual per quarter will be a reduction in tax of $3,120.
"Self-employed individuals are advised that the new threshold is to be used to file their estimated income tax return for the 2015 year of assessment, due March 15, and make payments for the same year in four equal instalments by March 15, June 15, September 15 and December 15 of each year," TAJ said.
Pensioners and persons 65 and over were reminded that, in addition to the threshold, they are entitled to a pension exemption of $80,000 and an age exemption of $80,000, respectively.
The adjustment in the threshold forms part of the Government's revenue measures tabled in Parliament during the 2014-2015 Budget Debate.
For further information persons may contact the TAJ customer care centre at 1-888-Tax-Help (1-888-829-4357) toll-free or visit www.jamaicatax.gov.jm