Thu | Mar 22, 2018

Tax break

Published:Saturday | December 19, 2015 | 12:00 AM

EVERY JAMAICAN taxpayer who files income tax will see their tax liability reduced by $8,892 each next year when the income tax threshold is raised.

A new income tax threshold of $592,800 per annum comes into effect in the new year on January 1, 2016, moving up from the current tax-free amount of $557,232.

Tax Administration Jamaica said that the net effect for each individual per quarter will be a reduction in tax of $2,223 and $741 per month.

The increase in the threshold means that the corresponding tax-free portion to be used by employers as of January 2016, in making periodic payments, is as follows: $11,400 weekly; $ 22,800 fortnightly; $49,400 monthly and $148,200 quarterly.