Understanding the 2019 Guidelines for Travelling Allowance Rates in Jamaica
In April 2019, the Tax Administration Jamaica (TAJ) issued a technical advisory outlining the updated rates for travelling allowances effective from June 1, 2019. This document serves as an essential reference for government officials, public sector employees, and organizations that reimburse travel expenses related to official duties. The following guide provides a comprehensive overview of the key elements of this advisory, how to interpret the new rates, and their practical application within the Jamaican public sector.
Scope and Purpose of the Advisory
This technical advisory, identified as 2019/01/IT, was issued pursuant to Section 12 of the Tax Administration Jamaica Act, 2013. Its primary purpose is to inform relevant personnel of the revised travelling allowance rates, which are to be used for official travel starting June 1, 2019. These rates are intended to assist in determining the maximum tax-free amounts that can be reimbursed to employees for official travel expenses, including mileage and other related costs.
Contents of the Advisory: Key Rate Adjustments
The document specifies amended rates for various categories of employees and travel scenarios. It provides both the pre-2019 figures and the new rates, highlighting the increases effective from June 1, 2019. Below is a summary of the main categories and their updated allowances:
- Managing Directors/Chief Executive Officers: from approximately $1,219,656.00 to $1,542,864.00
- Senior Managers: from approximately $1,130,544.00 to $1,430,137.00
- Middle Managers: from approximately $904,428.00 to $1,144,100.00
- Traveling Officers with mileage: from $643,128.00 to $813,564.00, with a mileage rate increasing from $43.00 to $46.00 per km
- Traveling Officers without mileage: from $904,428.00 to $1,144,100.00
- Supervisors: from approximately $514,500.00 to $707,448.00, with a mileage rate increase similar to Traveling Officers
- Casual Miles: from $52.00 to $62.00 per km
- Commuted Travel (with motor vehicle): from $429,060.00 to $542,772.00
- Commuted Travel (without motor vehicle): from $286,536.00 to $329,520.00
- Motorcycle travel: from $201,576.00 to $242,136.00
- Passenger Mileage: a per-person rate of $11.00 per km, applicable up to the vehicle’s licensed capacity
Interpreting and Applying the Rates
The figures provided in this advisory are intended solely as guidelines to determine the maximum tax-free travel allowances that can be reimbursed to employees. It is important to note that these allowances should reflect genuine travel expenses incurred during official duties. Therefore, officers responsible for approving travel expenses must ensure that the amounts claimed are reasonable and consistent with actual travel needs.
Additionally, the rates include mileage allowances for travel involving personal vehicles, with specific rates per kilometer depending on the employee's category and whether mileage is involved. For example, traveling officers and supervisors with mileage are reimbursed at $46.00 per km, up from $43.00, while casual miles are reimbursed at $62.00 per km.
Legal and Administrative Context
The updated allowance rates are issued under the legal framework of the Jamaican Constitution and relevant sector-specific acts, including the Revenue Administration Act. They are designed to align with fiscal policies and ensure consistency in the reimbursement process across public sector entities.
It is crucial for government departments, ministries, and agencies to utilize these rates accurately in their travel expense claims and reimbursements. The rates are to be used as maximum limits; actual expenses should be substantiated and in line with official travel duties.
Utilization and Compliance
To ensure compliance, officers should verify that claims for travel allowances do not exceed these prescribed limits. The rates serve as a guide for determining the tax-free portion of allowances, which is vital for proper tax reporting and deduction purposes. Any deviations or claims exceeding these rates may be subject to review or audit by the TAJ or other relevant authorities.
In conclusion, the 2019 update to Jamaica’s travelling allowance rates reflects the government's commitment to maintaining fair and reasonable reimbursement standards for official travel. Public officials and organizations should incorporate these figures into their travel expense policies and ensure adherence to the legal guidelines outlined in this advisory.
