Income Tax Allowances - Non Taxable Allowances

 

 

Non-Taxable Allowances

1. Travelling Allowances (as opposed to transportation allowance)

2. Station Allowance

3. Entertainment Allowance

4. Subsistence Allowance

5. Security and Telephone Allowance

6. Medical and Dental Expenses

7. Gratuity

8. Leave Entitlement (Vacation)

9. Severance PayTaxable in all Non-Gov't Agencies

10. Hardline

Taxable Allowances

1. Duty Allowance

2. Uniform Allowance

3. Acting allowance

4. Overtime Allowance

 

N.B.All allowances are non-taxable for Judges

 

 

ANNUAL TAX COMPUTATION

(1) From the Year of Assessment 2004 to the Year of Assessment 2006, the year of income 2003 to 2005, Income Tax is calculated on income in excess of $20,000.00 per month or $240,000.00 with first $110,000 @ 20% and the remainder @ 33.3% per year.

 

(2) For Year of Assessment 2007, Year of Income 2006. Income Tax is calculated on income in excess of $25,000.00 per month or $300,000 per year. The remainder in excess of the monthly and yearly threshold is taxed at the rate of 33.33%.

 

(3) For Year of Assessment 2008, Year of Income 2007. Income Tax is calculated on income in excess of $28,000.00 per month or $336,000 per year. The remainder in excess of the monthly and yearly threshold is taxed at the rate of 33.33%.

 

(4) For Year of Assessment 2009, Year of Income 2008. Income Tax is calculated on income in excess of $35,000.00 per month or $420,000 per year. The remainder in excess of the monthly and yearly threshold is taxed at the rate of 33.33%.