The second phase of the two tiered income tax threshold increase announced by the Minister of Finance & the Public Service in the 2016/17 Revenue Measures took effect on April 1, 2017.
This adjustment has 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||Weekly $||Fortnightly $||Monthly $|
|January 1, 2017 to March 31, 2017||19,236||38,472||83,356|
|April 1, 2017 to December 31, 2017||28,848||57,696||125,008|
The Increase will result in an additional monthly tax savings of $10,413.
While the standard income tax rate for individuals remains at 25%, a tax rate of 30% will continue to be applied to statutory income earned in excess of $500,000 monthly.
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||$250,068 (1,000,272 ÷ 12 x 3)|
|April 1, 2017 to December 31, 2017||$1,125,072 (1,500,096 ÷12 x 9)|
Persons may contact the TAJ Customer Care Centre at 1-888-Tax-Help (1-888-829-4357) toll-free for further information or assistance.
TAX ADMINISTRATION JAMAICA
PCJ Building (4th Floor)
36 Trafalgar Road, Kingston 10