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Question

Tax exemption threshold on income distributions

Published on: 25 November 2024

Question type: Written

Asked by: Max Andrews

Reference: WQ.417/2024

Answered by: Minister for Treasury and Resources

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WQ.417/2024

WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES

BY DEPUTY M.B. ANDREWS OF ST HELIER NORTH

QUESTION SUBMITTED ON MONDAY 18th NOVEMBER 2024 ANSWER TO BE TABLED ON MONDAY 25th NOVEMBER 2024

Question

"Will the Minister advise whether she has considered introducing a tax exemption for bonuses received by lower to middle income earners; and if not, why not?"

Answer

The Minister has not considered introducing such an exemption nor does she have plans to do so. Such an exemption would be discriminatory as many employees are not remunerated through a bonus system; nor are the self-employed. Exempting bonuses in such a way would almost certainly lead to wholesale tax planning by employers to reduce tax; Long Term Care; and, potentially, social security contributions bills.