Income Tax Rate w.e.f 1st January 2016
| Threshold |
2016 |
2015 | 2014 | 2013 |
| Individual Threshold ($) |
$592,800 |
$557,232 |
$507,312 |
$507,312 |
| Tax Rate |
7% |
25% |
25% |
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.
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:
$11,400.00 Weekly
$ 22,800.00 Fortnightly
$ 49,400.00 Monthly
$148,200.00 Quarterly
Employers are advised to make the necessary adjustments
to their payroll system to reflect the increase in the
threshold, so that all employees may benefit from the
increase.
In addition to employees, all individuals resident in
Jamaica, whether self-employed or pensioners will also
benefit from the increase in the income tax threshold.
With the increase in the threshold, the tax paid per
annum by each individual will reduce by $8,892.00 (i.e.
592,800 ? 557,232 = $35,568 x 25%), while the net effect
for each individual per quarter will be a reduction in
tax of $2,223.00 and $741.00 per month. The public is
reminded that income in excess of the threshold will
continue to be taxed at 25%.
Self-Employed individuals are advised that the new
threshold of $592,800 is to be used to file their
estimated income tax return for the 2016 year of
assessment, due March 15 and to make payments for the
same year in four equal installments by March 15, June
15, September 15 and December 15 of each year. However,
the threshold of $557,232 is to be used in filing the
annual tax return for year of assessment 2015, which is
also due on March 15, 2016. Pensioners and persons
sixty-five and over are reminded that in addition to the
threshold they are entitled to a pension exemption of
$80,000 and an age exemption of $80,000 respectively.
Individual Tax Rate is 25%
| Threshold |
2014 |
2013 |
| Individual Threshold ($) |
$507,312 |
$507,312 |
| Tax Rate |
25% |
25% |
| Exemptions |
||
| Individual over 65 Years |
507,312 |
507,312 |
| Age Relief |
80,000 |
80,000 |
| Pensioners under and over 65 |
507,312 |
507,312 |
| Age Relief |
80,000 |
80,000 |
| Pensioner Relief |
80,000 |
80,000 |
Jamaica Income Tax ? Withholding Tax on local payments
Withholding Taxes - Interest paid locally 25% of gross
Withholding Taxes - Dividends (Residents) 5% of gross
Withholding Taxes - Dividends (Non-Residents; Treaty rates is
applied where necessary) *33.33% & 25% of gross
Withholding Taxes - Directors Fee 25% of gross
Withholding Taxes - Pensions 25% of gross
Withholding Taxes on interest -quarterly 25% of gross
Corporate tax, including income tax and corporate tax is fixed at the rate of 25% in 2014.
Who files
This form is to be completed and submitted with supporting
documents by Individuals, who are:
self-employed,
employee taxed under Pay As You Earn and have other sources of
income in addition to their salaries or wages;
persons not employed but having income from various sources or
who any other reason is required by the Commissioner to make an
annual return. Filing date March 15th of the following year.
Form IT02 RETURN OF INCOME AND TAX PAYABLE - [ORGANISATIONS
(BODIES CORPORATE)]
Who files
This form is to be completed by Bodies Corporate that is subject
to Income Tax. The completed form is to be accompanied by a copy
of the Balance Sheet and Profit and Loss Account and supporting
documents e.g. certificates of tax withheld. Filing date March
15th of the following year.
Who files
Users of this form include Partnerships, Trust, Estates, and
Building Societies. The completed form is to be accompanied by a
copy of the Balance Sheet and Profit and Loss Account and or the
relevant supporting documents e.g. certificates of tax withheld.
Filing date March 15th of the following year.
Who files
This form is used by Life Assurance Organizations in respect of
Life Assurance Funds only. This must be accompanied by Financial
Statements, Profit and Loss Accounts and other relevant
documents. Filing date is March 15th of the following year.
Who files
This form is used by persons taxed under Pay As You Earn whose
source of income is from salaries or wages, pension, dividends,
bank interest, investment interest, and other source of income
from which tax has been deducted at source in excess of their
correct liability. PAYE persons receiving income from other
sources should complete Form IT01 Self-Employed Return. Filing
date March 15th of the following year.
Who files
This form is used by all employers. Filing date January 14th of
the following year.
Who files
Self-Employed persons and all corporate and unincorporated
bodies are required to file this return. Filing date March 15th
of the current year.
Who files
Prescribed Persons and other Bodies.
When filed: Within fourteen (14) days after the end of the
calendar month in which the interest was paid.
Who files
Prescribed Persons and other Bodies.
When filed: Quarterly.
Who files
Persons not resident in Jamaica and their country of residence
falls under the Double Taxation Relief will complete the 1N Form
to claim for excess income tax paid in Jamaica under the
following:
Investment, Profits from trade profession, pension, purchased
annuities, royalties, dividends, trust income, profit and gains
and other income earned in Jamaica.
Who files
To be used by pensioners, golden agers (over age 65), persons
with disabilities and commission representatives, to apply for
determination of exemptions to adivse intuitions of tax-free
amounts.