KINGSTON, Jamaica - Two key pieces of legislation aimed at reinforcing the Government’s commitment to prudent fiscal management were passed in the Senate on Friday.
Kamina Johnson SmithThe Income Tax (Amendment) Act, 2026 was approved with two amendments, while the Asset Tax (Specified Bodies) (Amendment) Act, 2026 was passed without change.
Piloting the Bills, Minister of Foreign Affairs and Foreign Trade, Kamina Johnson Smith, said the measures come as Jamaica navigates the fiscal demands of recovery and rebuilding following the country’s worst natural disaster, Hurricane Melissa.
“These Bills reflect the Government’s commitment to fairness, compassion and sound fiscal governance,” she said, noting that they are designed to support employees during the recovery period, provide clarity for employers, strengthen administrative efficiency, and safeguard the integrity of the tax system.
She added that the legislation also establishes a framework to facilitate timely, structured disaster relief in the event of future emergencies, allowing for clearly defined, time-bound support from employers to employees.
A central feature of the Income Tax (Amendment) Act is a limited adjustment to the annual filing and payment schedule for corporate income tax. Beginning with the 2025 year of assessment, the final return and payment date will move to April 15.
For consistency, the Asset Tax (Specified Bodies) (Amendment) Act aligns the filing and payment deadline for asset tax with the revised corporate income tax timeline, recognising that both assessments rely on the same underlying financial statements.
Johnson Smith stressed that the change is deliberately narrow, applying only to corporate income tax and asset tax. It does not affect PAYE (Pay As You Earn) obligations or the existing quarterly estimated income tax prepayment schedule.
“The amendment is intended to reduce compliance pressure, improve administrative coherence, and better align revenue realisation with fiscal planning, while remaining consistent with the Government’s overall fiscal framework,” she said.
The Minister explained that the asset tax amendment represents a measured administrative adjustment that has been under policy consideration for several years. Together with the income tax changes, it also provides a targeted and time-bound response to the disruption caused by Hurricane Melissa.
Specifically, amendments to the Income Tax Act give legislative effect to a policy framework allowing employer-provided post-Melissa disaster relief to be treated as non-taxable income for employees.
“It converts a necessary policy response into a clear statutory framework, providing certainty to employers, employees and tax administrators, while ensuring that compassion and fiscal responsibility are properly aligned in law,” she said.
Under the Bill, disaster-relief honoraria paid by employers between November 1, 2025, and March 31, 2026, will not be treated as taxable income in the hands of employees. At the same time, employers will be permitted to treat such payments as deductible expenses, provided the costs are genuinely borne by the employer and supported by appropriate documentation.
The Minister emphasised that the exemption is carefully limited and does not represent an open-ended relief. It applies only to the defined post-disaster period and is intended, in the first instance, to address the recovery from Hurricane Melissa.
The framework also provides for a prescribed cap to be set by the Minister of Finance and the Public Service, ensuring a balance between meaningful support for affected workers and the preservation of the core income tax structure.
“This approach minimises revenue risk and ensures that the exemption remains proportionate in nature, duration and fiscal impact,” Senator Johnson Smith said.
Additionally, the Tax Administration of Jamaica will enforce prescribed record-keeping and reporting requirements to verify compliance, helping to prevent abuse and ensure transparency and accountability in the application of the relief measures.
