Wed | Sep 20, 2017

Income tax for earners over $6 million to be applied retroactively

Published:Thursday | June 16, 2016 | 6:29 PM
Haughton ... the rate is being applied in keeping with the ministerial order which sanctions the changes to the income tax regime.

Jerome Reynolds, Staff Reporter

Persons earning above $6 million a year will owe the government money when the new income tax rate for high income earners is introduced on July 1.

At that time, the tax rate will go up from 25 per cent to 30 percent on the portion of the earnings above $6 million.

Chief Corporate Communications Officer Tax Administration Jamaica, Meris Haughton, says the new rate will apply for the full calendar year.

This means that persons in the $6 million income bracket will have to pay the government taxes on income earned between January and June.

Haughton said the rate is being applied in keeping with the ministerial order which sanctions the changes to the income tax regime. 

She notes that this is not the first time an adjustment in the income tax is being applied in this way.

 

Chief Corporate Communications Officer Tax Administration Jamaica, Meris Haughton

Haughton was speaking on Independent Talk on Power 106 FM this morning.

Meanwhile, Chief Executive Office of the Private Sector Association of Jamaica (PSOJ), Dennis Chung says the group will oppose the tax rate.

Chung said the PSOJ members met last night and rejected the proposal.

He stressed that applying the tax rate retroactively will further burden persons earning above $6 million a year.

 

PSOJ CEO Dennis Chung