Gov’t launches $20,000 one-off reverse income tax credit programme

The Government today launched its Reverse Income Tax Credit programme which will provide a grant of $20,000 to registered taxpayers who earned less than $3 million during year of assessment 2023.

The one-off payment is designed for individuals, including the self-employed, Pay-As-You-Earn (PAYE) employees, as well as domestic workers, who earned less than $3 million during year of assessment 2023 and who would have completed their tax filings and payments for the 2023 calendar year or NIS Stamp Card for 2022 by August 31, 2024.

The GOJ has estimated $11.4 billion as the cost of the initiative.

In his remarks, Minister of Finance Dr Nigel Clarke said the initiative will provide relief to low-income earners by allowing them to enjoy the gains from Jamaica's macroeconomic stability.

“… [it] could benefit over 500,000 Jamaicans across a range of professions including but not limited to government workers, administrative professionals, members of the creative industry, warehouse staff, merchandisers, security guards, office attendants and quick service professionals,” said Clarke.

Clarke also noted that the Reverse Income Tax Credit regime is also a demonstration of the Government's commitment to equity.

Approximately 200,000 higher earning Jamaicans benefitted from the movement in the income tax threshold from $1.5mn to $1.7mn.

The Reverse Income Tax Initiative ensures that lower income earners who contribute to Jamaica through statutory deduction also receive a benefit.

Payment of the tax credit will be rolled out through an online system developed and operationalised by Tax Administration Jamaica (TAJ) to ensure efficient processing and disbursement.

Speaking at the launch, Ainsley Powell, Commissioner General of TAJ, highlighted that the online system is ready to accept applicants noting that any issues will be addressed quickly.

To qualify for the tax credit, self-employed individuals must have filed their Annual Return of Income, Taxes and Contributions payable (S04) for the year of assessment 2023 and paid the required statutory obligations in full by August 31, 2024.

For employed persons under the PAYE system, their employer must have filed the Employer's Annual Return (S02) for the calendar year 2023 by August 31, 2024.

Additionally, to qualify for the tax credit, domestic workers must have filed their National Insurance Scheme (NIS) Stamp Card for the year 2022 and their names appear in the NIS database by August 31, 2024.

All qualified persons must possess a TRN, valid email address, telephone number, and bank account details or remittance agency information.

Since the launch of the initiative 1,315 applications have been received and 1,157 have been accepted.

The application period will run from October 2 – December 2, 2024, and must be submitted online through TAJ's website at www.jamaicatax.gov.jm/ritc.

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