Jamaica Income Tax Threshold 2013

Take note:

“Tax Administration Jamaica (TAJ) is reminding that an increase in the Income Tax Threshold and a cut in the Corporate Income Tax rate will take effect tomorrow.

The income tax threshold which is the tax-free portion of one’s salary will move to $507,312 a year, up from $441,168.

This means that for weekly paid workers, the first $9,756 will not attract income tax.

For people who are paid fortnightly, the first $19,512 will not be taxed, while for monthly paid workers, the first $42,276 s will not be taxed.

The TAJ said the portion of people’s salary that exceeds the threshold will continue to be taxed at 25 per cent.

For pensioners and persons 65 years and over, in addition to the increased threshold, they are entitled to a pension exemption of $80,000 and an age exemption in the similar amount.

Meanwhile, come tomorrow, the new 25 per cent Corporate Income Tax rate will take effect for most companies.

The old rate of 33 and 1/3 per cent will remain in effect for companies regulated by the Financial Services Commission, the Office of Utilities Regulation, the Bank of Jamaica,; and the Ministry of Finance and Planning.

The adjustments to the income tax threshold and the corporate income tax rate were announced earlier this year during the Budget presentation.”

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