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Increase in personal income tax rate

In his address to the nation on December 23, 2009, the Prime Minister, the Honourable Bruce Golding, announced that individuals with taxable income above $5 million per annum will be charged increased income tax rates. This temporary new measure is set to take effect on January 1, 2010 through to March 31, 2011.

The measure will see individuals with statutory income above $5 million annually being charged an increased rate of income tax as follows:

Taxable Income Marginal Rate

$0 - $441,168 Nil

$441,169 - $5,000,000 25%

$5,000,001 - $10,000,000 27.5%

$10,000,001 and above 35%

The marginal increase in personal income tax rate will be applied to all individuals, whether they are employed, self-employed, a partner or a pensioner.

It should be noted however that all income levels will still benefit from the income tax threshold of $441,168, which also becomes effective on January 1, 2010. Pensioners will continue to be entitled to an additional exemption of $80,000 in respect of pension income derived annually from an approved pension or retirement scheme, as well as a further $80,000 exemption for persons aged 65 years or over.

**For further information contact Customer Care at 1-888-Tax-Help (1-888-829-4357) or visit

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