Approximately 580,000 Taxpayers to Benefit from Reverse Income Tax Credit

Approximately 580,000 Jamaican taxpayers will benefit from the Reverse Income Tax Credit initiative, which was officially launched on Wednesday (October 2) by the Ministry of Finance and the Public Service (MOFPS) in collaboration with Tax Administration Jamaica (TAJ).

First announced by portfolio Minister, Dr. the Hon. Nigel Clarke, during his opening Budget presentation on March 12, the Reverse Income Tax Credit will provide a one-off $20,000 credit to individual taxpayers, whether employed or self-employed, who earn less than $3 million annually.

To be eligible, persons must be contributing to the system via Education Tax, National Housing Trust (NHT) and National Insurance Scheme (NIS) statutory deductions.

Payments will be made through remittance companies.

Speaking at the launch event held at The Jamaica Pegasus hotel in New Kingston, Minister Clarke emphasised the significance of the initiative in addressing income disparity in Jamaica.

“We chose the threshold to be $3 million because we know that even persons who earn over $1.7 million can have a disproportionate experience from the period of high inflation,” he noted.

Effective April 2024, the personal income tax threshold moved from $1.5 million to $1.7 million.

Dr. Clarke noted that the grant programme will benefit Jamaicans who work as security guards, room attendants, factory floor workers, machine operators, cooks and waitresses in restaurants, office attendants, messengers, janitors, drivers, sanitation workers, street cleaners and maintenance staff, “who toil every day and contribute to the economy through statutory deductions”.

Taxpayers are required to meet the annual income tax filing/payment requirements for the 2023 year of assessment, which was extended to August 31.

TAJ Commissioner General, Ainsley Powell, highlighted the innovative aspects of the Reverse Income Tax Credit programme, emphasising the user-friendly online registration system.

“We developed a system that would allow an online registration and in so doing, the validation process will be done automatically to determine if persons are eligible. We have put in place the arrangement to have customer care support for persons who may have challenges to ensure that we can have a work around,” he noted.

Mr. Powell said the TAJ is prepared to handle the anticipated volume of applicants, estimating that around 580,000 individuals could be eligible.

“By March 31 everything has to be wrapped up. So, persons will be able to apply up to January 2, and then we’ll ensure that we can complete processing for payment before March 31. That is important because of the whole financial arrangements around it and the approval for payment,” Mr. Powell pointed out.

For more information and assistance regarding the Reverse Income Tax Credit programme, individuals are encouraged to participate in upcoming sensitisation sessions and webinars outlined by TAJ.

Eligible taxpayers are also encouraged to call 888 tax back, 888-829-2225 or visit the TAJ website for more information.