KINGSTON, Jamaica, CMC—The Jamaica government has extended the Special Arrears Settlement Programme to May 31 this year. The program aims to relieve taxpayers of unpaid interest, penalties, and tax surcharges.
“We are pleased to announce that as of March 31, 2025, our assessment showed that the program has been very successful in collecting over J$10.5 billion (One Jamaica dollar=US$0.008 cents), surpassing the J$10-billion target and thereby indicating a willingness by taxpayers to pay their principal taxes and to benefit from the waivers of interest, penalty, and surcharge,” Finance and the Public Service Minister, Fayval Williams, told Parliament.
The government said that the measure will include the Education Tax, Corporate Income Tax, Individual Income Tax, pay-as-you-earn (PAYE), Special Consumption Tax, General Consumption Tax, Asset Tax, and Partnership Income Tax.
Williams said the J$10.5-billion payment of principal taxes would result in approximately J$12 billion of interest, principal, and surcharge waivers.
“While there is still a huge amount of principal, interest, penalty, and surcharge arrears on the accounts, the Special Arrears Settlement Programme has been an effective way to reduce the stock of debt on the books of Tax Administration Jamaica (TAJ),” she said.
Since the program began in January 2025, more than J$615 million in interest, penalty, and surcharge has been removed from the system, just a fraction of the amount to be removed based on principal payments.
The Finance Minister said the TAJ’s system is being configured to automatically remove the qualifying interest, penalty, and surcharge by the end of April 30, 2025.
“This is to say to taxpayers that they may still see the interest, penalty, and surcharge on their accounts but know that the TAJ is working assiduously, such that all the accounts will be updated by the end of April 2025.
“The TAJ records show that Compliance Officers made over 30,000 contacts or interventions with taxpayers owing over J$43 billion in principal taxes with associated interest, penalty, and surcharge of $49 billion. Of that, ninety percent of these taxpayers have expressed interest in paying their principal taxes,” she added.
Williams, however, noted that many taxpayers with huge principal balances have found it challenging to source the necessary funding to pay the principal taxes in the limited time given under the Special Arrears Settlement Programme.
“As a result, the program is being extended to May 31, 2025, to allow additional taxpayers to benefit. The comprehensive public awareness program and compliance activities that supported the waiver program will be continued.”
The Special Arrears Settlement Programme was implemented to encourage taxpayers to pay their principal amounts by the March 31, 2025, deadline.
The announcement was also made in recognition of the country’s significant weather events, including Category 5 Hurricane Beryl and Tropical Storm Rafael, which left many businesses and individuals in a state that required rebuilding.
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