Income Tax is calculated at a percentage of you Statutory Income (Your earnings after all Government deductions/exemptions are applied). Income Tax Due is simply the amount of money you have to pay to the Government each week, month or year. Income Tax is deducted at 25% of Statutory Income.
If you are employed and it is your sole income, your employer will calculate you Income Tax and apply the deduction 'at source' i.e. direct from your salary, along with other deductions, before you receive your pay packet or Net Pay. The employer is also responsible for completing a tax return. Exceptionally, you may be requested to complete a Tax Return by the Commissioner General of Tax Administration Jamaica (official tax collection service).
All other workers (Companies, Employees with other Income source, Partnerships, Self-Employed, etc) are required to submit a final Tax Return for the previous year and an estimated Tax return for the current year, no later than March 15. Estimated Income Tax should be paid to the Revenue Centres quarterly and Tax Offices by March 15, June 15, September 15, and December 15. It is your responsibility to pay Income Tax at the correct amount and within the time constraints. Failure to do so may result in a large Tax bill, penalty, or Court Summon.
Income Tax calculations are simple - just enter your details into our free online income tax calculator