Jamaica’s tax administration (TAJ) has announced, on 29 January 2025, the launch of a Special Arrears Settlement Programme, designed to waive/remit Interest, Penalty and Surcharge (IPS) accrued once outstanding principal taxes are paid by 31 March 2025.

The “Special Arrears Settlement Programme” is expected to streamline the process of settling outstanding debts associated with the selected tax types.

This allows all persons and businesses, whether self-employed, company or organisations, to clear their debts without the additional costs typically associated with late filing and payments related to several tax types and become compliant. The arrears settlement programme is expected to collect JMD 10 billion in outstanding taxes, thereby significantly reducing the debt stock by 31 March 2025.

Taxpayers with unpaid balances for specific tax types, including education tax, corporate income tax, individual income tax, PAYE, special consumption tax, general consumption tax, asset tax, and partnership income tax, have until 31 March 2025 to clear their arrears. By doing so, they can waive the IPS by the same percentage as the settled principal amount.

It should be noted that the programme is restricted to outstanding principal tax up to the Year of Assessment 2024 and the Period of Assessment 2025. This means taxpayers must be current with their filing obligations, including Income Tax Returns and payments due 17 March 2025.

Taxpayers wishing to take advantage of the programme are encouraged to contact Tax Administration Jamaica to arrange to pay off the principal arrears by the 31 March 2025 deadline.