A NEW income tax threshold of $193,440 per annum comes into effect in the New Year on January 1, 2006, the Tax Administration Services Department announced yesterday.
This increase in the threshold means that individuals will now benefit from a tax-free income of $193,440 annually, $16,120 monthly, $7,440 fortnightly or $3,720 weekly.
The tax authorities are reminding employers 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.
The income tax threshold was increased this year on July 1, 2005, to an effective annual figure of $144,768, up from the previous $120,432 mark and is again expected to increase further to $275,000 on January 1, 2007.
For further information, please call toll-free 1-888-Tax-Help (1-888-829-4357) or visit the website www.jamaicatax.gov.jm.
