Tax Administration Jamaica, TAJ, is reporting that all is in place for the new income tax threshold and corporate income tax rate to take effect Tuesday, January 1.
There will be an increase in the Income Tax Threshold and a decrease in the Corporate Income Tax rate.
For individuals, the personal income tax threshold or tax-free income increases to J$507,312 per annum, up from J$441,168 per annum.
Also of January 1, unregulated companies will see a reduction in the rate of Corporate Income Tax (CIT) to 25 per cent down from 33 1/3 per cent.
This brings the CIT rate for unregulated companies in line with the Personal Income Tax (PIT) rate of 25%.
However, the rate remains at 33? per cent for companies regulated by the Financial Services Commission, Office of Utilities Regulation, Bank of Jamaica and Finance Ministry.
The adjustments form part of the Government’s revenue measures tabled in parliament during the 2012/2013 budget presentation and further outlined in the recent White Paper on Tax Reform.