Jamaica's New Tax Measures

                                                      New PAYE Threshold to be introduced on April, 1, 2016

 It seems that some persons are having a field day concerning the J.L.P’s PAYE proposal. They are saying that even the unemployed expect to get it come April 1, 2016. My understanding is that it was advertised that persons earning up to $M1.5 per annum would benefit  from it. The current  threshold is 592,800.00. If you are earning below this amount you will not benefit from the increase. The increase take home pay for a person with a basic pay of $M1.5 is calculated thus.

Annual         Monthly

1,500,000      125,000 New Threshold

-592,800       -49,400 Old Threshold

907,200          75,600

226,800.00     18,900 Increased take home pay

If you are getting below $M1.5, say $M1.2 annually you can use the above table to calculate your increased take home pay.  If you are forthnightly or weekly paid then you can use the above table to calculate your increase take home pay.

Persons getting over $M1.5 per annum will not benefit and those persons might find themselves taking home less pay than those they supervise. So the government says that it will do something for these persons. It might have to shave of  a few percentage points off the rate they pay for income tax. Please note the above. To benefit from the new threshold increase you have to be:

1.       Employed and earning in excess of 592,800.00 per annum

2.       Self-employed and earning in excess of $ 592,800.00 per annum

3.       Not earning in excess of $M1.5 per annum

If you meet the criteria in 1 & 2 you qualify. If you meet it in 2 &3 then you qualify.

Employees and the self -employed if you are still uncertain how the new tax measures will affect you please talk to an accountant.