Pensioners & Seniors
Information for all senior citizens and pensioners about taxes that will help them to understand their entitlements and obligations.
As a retiree, pensioner and/or golden-ager there are certain benefits to which you are entitled based on your status.
Exemption for Pensioners & Golden Agers
- The following exemptions apply in the circumstances outlined below:Persons under 55 years old, who receive a pension from a Statutory Pension Scheme e.g. NIS, or an Approved Super annuation Scheme, are entitled to the tax exemption amount of $80,000.00 against that Pension income only plus$796,536.00 – income tax threshold, totaling $876,536.00.
- Persons 55 years and over, who receive a Pension from a Statutory Pension Scheme or an Approved Superannuation Scheme are entitled to a tax exemption amount of $80,000.00 from that pension income and any other source of income, plus $796,536.00 –income tax threshold, totaling $876,536.00.
- Pensioners who are 65 years and over, are entitled to an exemption of $80,000.00 forage relief & 80,000.00 pension relief, plus $796,536.00 –income tax threshold, totaling $956,536.00.
Current income tax threshold and exemptions
- 2014 Pension exemption - $80,000.
- 2014 Age exemption - $80,000.
- 2014 Income Tax Threshold - $507,312.
- 2015 Income Tax Threshold - $557,232.
- 2016 Income Tax Threshold - $796,536.
If you are not a Pensioner, but you are 65years and over, you are entitled to the age relief of $80,000.00 as well as the threshold of $796,536. Non-resident Pensionersare entitled to the exemptions, but not the threshold.
Exemption for Withholding Tax(Tax on Income imposed at source)
Documents required for application:-
- Taxpayer Registration Number (TRN)
- Proof of age (Birth Certificate, Golden Ager ID Card, Passport, Driver’s Licence)
- Proof of Pensioner's current pension slip,stub or receipt
- Documentary proof of any other source of income including interest income.
(Certificates are usually supplied by the banks or financial institutions).
- Name and address of bank (s) or financial institutions and all account numbers.
- Complete P01 - Exemption Form - ‘PAYE Application for the Determination of Exemption & Expenses’.
Examples of possible income sources:-
- Business Profits
N.B. Pensioners who are residents in Jamaica for a period totaling 6 months or more, must include/declare all income earned from other countries(World Income). World Income includes all income earned by persons resident in Jamaica from all sources outside Jamaica (subject to applicable credits).
Applications for the Exemption from Withholding Tax are to be submitted to:
Tax Administration Jamaica
Donald Sangster Building
116 East Street