$1.5m income tax threshold now in effect
KINGSTON, Jamaica — The second phase of the two-tiered income tax threshold increase announced by Minister of Finance and the Public Service Audley Shaw in the 2016/17 revenue measures is now in effect.
The Tax Administration of Jamaica (TAJ) said the adjustment, which took effect on April 1, resulted in an increase in the threshold or tax-free amount from $1,000,272 to $1,500,096 per annum, broken down on a periodic basis as follows:
Threshold for individuals for year of assessment 2017:
• Period
January 1 to March 31
Weekly – $ 19,236
Fortnightly – $ 38,472
Monthly – 83,356
• Period: April 1 to December 31
Weekly – $28,848
Fortnightly – $57,696
Monthly – $125,008
The TAJ said the increase will result in an additional monthly tax savings of $10,413.
It further stated that while the standard income tax rate for individuals remains at 25 per cent, a tax rate of 30 per cent will continue to be applied to statutory income earned in excess of $500,000 monthly.
It said the “effective threshold” for the year of assessment 2017 will be $1,375,140, which is the maximum relief for 2017, as outlined below:-
Calculation of the effective threshold for year of assessment 2017:
January 1, 2017 to March 31, 2017 – Threshold – $250,068 (1,000,272 ÷ 12 x 3)
April 1, 2017 to December 31, 2017 – Threshold – $1,125,072 (1,500,096 ÷12 x 9)
