12 March 2014 - New Income Requirements

Last Updated: Wednesday, 13 May 2015 18:59 | Print

NO. 04/2014

New Income Requirements

“Making It Plain”

The Ministry of Finance and Energy wishes to inform all employers and the general public that that the new income tax regime is in effect.

Pursuant to Income Tax (Amendment) Order SRO. 1of 2014:

“The amount of tax to be deducted from the chargeable income of a person shall be at the following rates–

(a) Individual

The first $24,000.00 or less of chargeable income............................ 15%

Any amount in excess of the first $24,000.00 of chargeable income 30%

(b) Company .................................................................................. 30%”

“Chargeable Income”means any income over EC$3,000.00 per month or over EC$36,000.00 per year.

This means that persons who earn up to EC$3,000.00 per month or up to EC$36,000.00 per year will NOT BE REQUIRED TO PAY Income Tax, as the first EC$36, 000 is NOT chargeable.

Under the law, persons who earn over EC$3,000.00 and up to EC$5,000.00 will pay 15% (chargeable income being EC$24,000.00). Persons earning over EC$5,000.00 per month or over EC$60,000.00 per year will be required to pay 30% on the chargeable income in excess of EC$24,000.00.