Special Arrears Settlement Programme Extended to May 31
By: April 2, 2025 ,The Full Story
The Special Arrears Settlement Programme, aimed at providing relief for taxpayers of any unpaid interest, penalty and surcharges on tax types, has been extended to May 31, 2025.
Minister of Finance and the Public Service, Hon. Fayval Williams, made the disclosure during a statement to the House of Representatives on Tuesday (April 1).
The tax types include Education Tax, Corporate Income Tax, Individual Income Tax, Pay As You Earn (PAYE), Special Consumption Tax, General Consumption Tax, Asset Tax and Partnership Income Tax.
“We are pleased to announce that as at March 31, 2025, our assessment showed that the programme has been very successful in collecting over $10.5 billion, surpassing the $10-billion target and thereby indicating a willingness by taxpayers to pay their principal taxes and to benefit from the waivers of interest, penalty and surcharge,” Mrs. Williams said.
She noted that the $10.5-billion payment of principal taxes will result in approximately $12 billion of interest, principal and surcharge waivers.
“While there is still a very large amount of principal, interest, penalty and surcharge arrears on the accounts, the Special Arrears Settlement Programme has been an effective way to reduce the stock of debt on the books of Tax Administration Jamaica (TAJ),” Mrs. Williams said.
Since the programme began in January 2025, more than $615 million in interest, penalty and surcharge has been removed from the system and represent just a fraction of the amount to be removed based on principal payments.
The Finance Minister said the TAJ’s system is being configured to automatically remove the qualifying interest, penalty and surcharge by the end of April 30, 2025.
“This is to say to taxpayers that they may still see the interest, penalty and surcharge on their accounts but know that the TAJ is working assiduously, such that by the end of April 2025, all the accounts will be updated,” Mrs. Williams said.
“The TAJ records show that Compliance Officers made over 30,000 contacts or interventions with taxpayers owing over $43 billion in principal taxes with associated interest, penalty and surcharge of $49 billion. Of that, ninety per cent of these taxpayers have expressed an interest to pay their principal taxes,” she added.
Mrs. Williams, however, noted that many taxpayers with very large principal balances have found it difficult to source the necessary funding to pay the principal taxes in the limited time given under the Special Arrears Settlement Programme.
“As a result, the programme is being extended to May 31, 2025 to allow additional taxpayers to benefit. The comprehensive public awareness programme and compliance activities that supported the waiver programme will be continued,” she stated.
The Special Arrears Settlement Programme was implemented to encourage taxpayers to pay their principal amounts by the deadline of March 31, 2025.
At the time of the announcement, it was also in recognition of the significant weather events the country had with the Category 5 Hurricane Beryl and Tropical Storm Rafael that left many businesses and individuals in a state that required rebuilding.