On March 10, 2020, the Minister of Finance and the Public Service tabled the proposed Revenue Measures for the fiscal year 2020/21. In summary, the following are the proposed tax measures:
- Effective April 1, 2020, the standard general consumption tax (GCT) rate will be reduced from 16.5% to 15%. Registered taxpayers should begin making the necessary adjustments to their systems in order to be ready for this change. No other GCT rate is impacted by this change. Also, please be reminded that with effect from April 1, 2019, the GCT registration threshold is J$10 million;
- As of year of assessment 2020, companies with revenues of J$500 million or less will be entitled to a special income tax credit of J$375,000. This is in addition to any available Employment Tax Credit. This special income tax credit must be utilized in the current year, as it cannot be carried forward or cannot result in a tax refund for the company; and
- The rate of Assets Tax payable by financial institutions will be reduced from 0.250% to 0.125%. This measure will take effect for year of assessment 2021. Therefore, Assets Tax filings for year of assessment 2020, which are due by March 16, 2020, remain unaffected by this proposed measure.
For your information and convenience, we have attached the GOJ Revenue Measures 2020-2021 document.
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