Shucks, New Taxes! Thanks, For the Break in Income Tax Though

Effective January 1, 2013 an estimated 111,000 Jamaicans would stop paying taxes on their salaries as a result of a $66,144 increase in the income-tax threshold, the Gleaner reports.

The increase in the income-tax threshold announced by Finance Minister Dr Peter Phillips during the budget debate in May 2012 took effect January 1, 2013, with tax-free income moving to $507,312 per annum, up from $441,168 per annum. This translates to a weekly tax-free income of $9,756.

Decrease in the Corporate Income Tax
In the meantime, the announced decrease in the corporate income-tax rate also became effective January 1, 2013. Unregulated companies will see a reduction in the rate of corporate income tax to 25 per cent, down from 33 1/3 per cent.

This brings the corporate income tax rate for unregulated companies in line with the personal income-tax rate.

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