Tax Administration Jamaica, TAJ, says legislation has now been amended to increase the income tax threshold to just over $1-million effective the beginning of next month.
The TAJ says this will result in an effective threshold of approximately $797,000 for the 6 month period between July and December of this year.
In statement today, the tax authority says this will positively impact employed and self employed individuals as well as pensioners.
Also to come into effect is a 30-percent income tax rate on statutory income in excess of $6-million. This represents an increase of 5-percent
Statutory income is the total amount of income from all sources after the appropriate deductions and exemptions.
The Authority also says that effective April 1, 2017, there will be another increase in the threshold to just over $1.5-million.
This means that the effective threshold for that year will be $1.37-million.
The TAJ says the full threshold of $1.5-million will become effective on January 1, 2018.