Jamaica

Increase in annual personal income tax-free threshold

The Government of Jamaica announced an increase in the personal income tax (PIT) threshold available to Jamaican tax-resident individual taxpayers from 1,500,096 Jamaican dollars (JMD) per annum to JMD 1,700,088 per annum with effect from 1 April 2024.

Increase in annual pension income exemption and age allowance

The Income Tax Act historically provided an exemption from income tax (generally referred to as the pension relief) in respect of JMD 80,000 of pension income for pensioners aged 55 years and over. Individuals 65 years and older have also been entitled to a further exemption (generally referred to as age relief) in respect of JMD 80,000 of income from any source.

The Government of Jamaica announced its intention to increase each of these amounts to JMD 250,000 per annum with effect from 1 April 2024.

Increase in duty-free inbound passenger allowance / de minimis import value  

With effect from April 2024, the duty-free inbound passenger allowance for personal/household effects was increased from 500 to 1,000 United States dollars (USD), while the de minimis value of imported goods for customs purposes (on which import charges may be imposed) was increased from USD 50 to USD 100.

Reverse income tax credit for individual taxpayers  

The Government of Jamaica announced the implementation of a reverse income tax credit amounting to JMD 20,000 applicable to Jamaican individual taxpayers (whether employed or self-employed) who earn less than JMD 3 million annually and meet the annual income tax filing/payment requirements for the 2023 Year of Assessment. Tax Administration Jamaica (TAJ) is to establish a system to facilitate the application, processing, and payment of this reverse credit programme, which is slated to become operational during the current fiscal year.

Tax credit for investment in residential solar installations

An income tax credit has been introduced to encourage the purchase and installation of residential solar photovoltaic systems. The tax credit is available to employed and self-employed taxpayers and is calculated at 30% of the cost of the system, up to a maximum system cost of JMD 4 million. The credit takes effect from the year of assessment 2023.