Sunday, April 23, 2017

The second phase of the two tiered income tax threshold increase announced by the Minister of Finance & the Public Service in the 2016/17 Revenue Measures took effect on April 1, 2017.

This adjustment has resulted in an increase in the threshold or tax-free amount from $1,000,272 to $1,500,096 per annum, broken down on a periodic basis as follows:


Threshold for individuals for year of assessment 2017

Weekly$ Fortnightly$ Monthly$
19,236 38,472 83,356
28,848 57,696 125,008

 

The Increase will result in an additional monthly tax savings of $10,413.

While the standard income tax rate for individuals remains at 25%, a tax rate of 30% will continue to be applied to statutory income earned in excess of $500,000 monthly.

The “effective threshold” for the year of assessment 2017 will be $1,375,140, which is the maximum relief for 2017, as outlined below:-

Calculation of the effective threshold for year of assessment 2017
Period Threshold $
January 1, 2017 to March 31, 2017 $250,068    (1,000,272 ÷ 12 x 3)
April 1, 2017 to December 31, 2017  $1,125,072 (1,500,096 ÷12 x 9)

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