Thu Jun 30 13:50:00 GMT-05:00 2016
Issued by: Ministry of Finance and the Public Service
The Government of Jamaica (GOJ) remains committed to improving the lives of Jamaicans at all levels and in creating an enabling business environment that will redound to the strengthening, and growth of the Jamaican economy.
Effective July 1, 2016, tens of thousands of Jamaicans, will begin to benefit from an increase in the personal income tax threshold, as it moves from $592,800.00 to $1,000,272.00 which is consistent with GOJ's thrust to reduce the level of taxes on individuals and businesses.
GOJ has continued to execute its tax reform package which will see a shift from direct tax to the implementation of indirect tax measures. In tandem with a comprehensive tax reform programme, is the thrust to increase tax compliance and GOJ will continue through Tax Administration Jamaica to ramp up efforts in that regard.
Come July 1, 2016 earners in excess of $6 million will begin to pay an additional 5% on the personal income tax moving the tax rate from 25% to 30%. This new rate will be applied after the statutory income is computed and the income tax threshold has been applied.
The period of July to December 2016 will be subject to the new rate of taxation at 30%, and treated as a distinct period for the application of tax. The Government has already begun to make adjustments to the configuration of the Revenue Administration Integrated System (RAiS), and other operational changes along with the relevant amendments to the Legislation, which will facilitate the implementation of the increased personal income tax for persons who earn in excess of 6 million dollars.
In January 2017, the tax rates will be normalised, and the full tax rate of 30% on personal income tax for earners in excess of 6 million dollars will be applied on the annualised statutory income.