There seems to be some confusion among tax payers
regarding the application of the new income tax threshold.
Several callers to the RJR News Centre on Friday morning sought clarification on the date for the application of the new income tax threshold.
The callers say they were told by their employers that the government had changed the initial July 1 date announced by Finance Minister Audley Shaw during his budget presentation.
They say they are being told that the new date is August 1.
Seeking to sort out the muddle created in the minds of these tax payers RJR News spoke with Technical Specialist with the Tax Administration, Donna Newman who made it clear that the new threshold has been applied since July 1.
She explained that it is the tax treatment for certain allowances that was pushed back to August 1.
"Based on the announcement during the Budget speech by the Minister of Finance the threshold should have been increased effective the first of July as well as the exemption that can be accessed by pensioners,
"On the first of July the increase in the threshold and the exemption did take place however the change in terms of the treatment for certain allowances specifically to impact on uniform allowance and the rent allowance which was scheduled to have taken place on the first of July did not take place on the first of July and the Minister made an announcement to that effect that it is now effective the first of August," Mr. Newman said.
As of July 1, the income tax threshold was increased to $320,736 up from the current tax-free amount of $220,272.
The new income tax threshold will apply for July 1 to December 31, 2009, which means that for the rest of the year, individual gross earnings of up to $270,504 will be free of income tax.
Several callers to the RJR News Centre on Friday morning sought clarification on the date for the application of the new income tax threshold.
The callers say they were told by their employers that the government had changed the initial July 1 date announced by Finance Minister Audley Shaw during his budget presentation.
They say they are being told that the new date is August 1.
Seeking to sort out the muddle created in the minds of these tax payers RJR News spoke with Technical Specialist with the Tax Administration, Donna Newman who made it clear that the new threshold has been applied since July 1.
She explained that it is the tax treatment for certain allowances that was pushed back to August 1.
"Based on the announcement during the Budget speech by the Minister of Finance the threshold should have been increased effective the first of July as well as the exemption that can be accessed by pensioners,
"On the first of July the increase in the threshold and the exemption did take place however the change in terms of the treatment for certain allowances specifically to impact on uniform allowance and the rent allowance which was scheduled to have taken place on the first of July did not take place on the first of July and the Minister made an announcement to that effect that it is now effective the first of August," Mr. Newman said.
As of July 1, the income tax threshold was increased to $320,736 up from the current tax-free amount of $220,272.
The new income tax threshold will apply for July 1 to December 31, 2009, which means that for the rest of the year, individual gross earnings of up to $270,504 will be free of income tax.
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