NHT deduction is 3% of net profit for the self-employed and 2.5% of salary for the employed. NIS is a whopping 5% for the self-employed and 2.5% for the employed up to a ceiling of 1.5 million dollars. What does this mean? It means the most you can pay NIS on is 1.5 million dollars of your profit or income. This basically translates to 75,000 per year for the self-employed.
Today we will be discussing how to avoid paying these deductions. There are three ways to avoid paying these deductions as long as you live in Jamaica. For the purpose of legality and to avoid the wrath of Tax Admin I will only be discussing two.
- Be unemployed. The government is not unreasonable and as long as you are not working or running a business you are not expected to pay NHT or NIS deductions.
- Reach age 65. Now the government is well aware that you have basically reached the age of retirement. And at this age, it is unlikely that you would be qualified for a loan from NHT. Due to the government goal of being fair with its citizen, hence you are exempted from paying this deduction. In regards to NIS you are at the age where you should be enjoying all the millions of dollars in taxes paid in your lifetime. Because the government cares, you are able to reap the benefit of your labour, thus you automatically qualify for an exemption.
For the rest of us not so lucky citizens we have more years to go.
Need help with your Statutory deductions shoot me an email firstname.lastname@example.org