The purpose of the following information is to help you, a pensioner or soon-to-be retiree, learn about the benefits that you are entitled to and to help you better understand the payment of tax during retirement.
Income sources
Examples of possible income sources:-
- Pension
- Bank Interest
- Dividends
- Rent
- Farming
- Fees/Commissions
- Business Profits
- Employment
Pensioners who are residents in Jamaica for a period totaling 6 months or more, must include/declare all income earned from other countries (World Income). World Income includes all income earned by persons resident in Jamaica from all sources outside Jamaica (subject to applicable credits).
Exemption For Pensioners & Golden Agers
The following exemptions apply in the circumstances outlined below:
- Persons under 55 years old, who receive a Pension from a Statutory Pension Scheme
e. g. NIS, or an Approved Superannuation - Scheme are entitled to the tax exemption
amount of $80,000* against that - Persons 55 years and over, who receive a Pension from a Statutory Pension Scheme or an Approved Superannuation Scheme are entitled to a tax exemption amount of$80,000 from that Pension income and any other source of income.
- Pensioners who are 65 years and over, are entitled to an exemption of $80,000 for Age Relief & $80,000 Pensioners Relief
Note:
- Pension exemption – $80,000
- Age exemption – $80,000
- Income Tax Threshold – $796,536
If you are not a Pensioner, but you are 65 years and over, you are entitled to the age relief of $80,000 as well as the threshold of $796,536 (2016)
Non-resident Pensioners are entitled to the exemptions, but not the threshold.
Exemption for Withholding Tax
(Tax on Income imposed at source)
Documents required for application :-
- Taxpayer Registration Number (TRN)
- Proof of age (Birth Certificate, Golden Ager ID Card, Passport, Driver’s Licence)
- Proof of Pensioner’s current pension slip, stub or receipt
- Documentary proof of any other source of income including interest income.
(Certificates are usually supplied by the banks or financial institutions). - Name and address of bank (s) or financial institutions and all account numbers.
- Complete P01 – Exemption Form – ‘PAYE Application For The Determination Of Exemption & Expenses’.
Applications for the Exemption from Withholding Tax are to be submitted to:
Refunds Unit
Tax Administration Jamaica Donald Sangster Building 116 East Street
Kingston
Refund For Withholding Tax
If at the end of any calendar year you have overpaid your taxes, you may apply in writing for a refund to the:
Refunds Unit
c/o Tax Administration Jamaica Donald Sangster Building
116 East Street
Kingston
Where your income includes business profits Form IT01 is to be completed, instead of the IT05.
Documents to be submitted are:
- Taxpayer Registration Number (TRN)
- Proof of age
- Certificates showing Pension (P24) for each Year of Assessment.
- Withholding tax certificates showing total interest earned and tax deducted (if any) for each of the claim from Pre-scribed Persons e.g. Banks, Building Societies, and any institutions operating under the Financial Institutions Act.
- Documentary proof of any other source of income for each year of claim.
For further details :
Call toll-free:1-888-TAX-HELP (829-4357
1-888-GO-JA-TAX (465-2829) Email: taxhelp@taj.gov.jm
Website: www.jamaicatax.gov.jm Facebook: wwww.facebook.com/jamaicatax
Twitter:@jamaicatax
Visit any tax office nearest you
Source of Information:
Tax Administration Jamaica, 2016
