Following the GSD’s recent comments on the taxation of student summer jobs, the Government have issued a statement clarifying tax rules within student income exemption.

A statement from the Government follows below:

The Government wishes to emphasise that the application of tax rules, including student income exemption, is a matter for the Tax Office, which operates independently of the Minister for Taxation. The Government is advised that there has been no change in the way the Tax Office applies the student income exemption. As in previous years, the exemption is applied once the Tax Office receives formal confirmation that the individual will continue as a full-time student for the academic year beginning 1st September 2024. 

The issue raised by the Opposition is not linked to any new Budget measures. Instead, it arises because some youngsters currently working during the summer months are unable to confirm their student status for September 2024. Until that confirmation is received, the Tax Office cannot grant the exemption. This procedure has been consistently applied in previous years and remains unchanged. 

If a student contacts the Tax Office directly, they will receive the same information. Once the student status for the coming academic year is confirmed, the exemption will be applied, and any tax paid will be refunded without delay. 

The GSD’s call for clarification misunderstands the Government’s role in this matter. Tax rules are administered by the Tax Office, and in this case, the same rule has been consistently enforced. Contrary to what the GSD suggests, this has no connection to any Budget measures. Had the Hon. Opposition spokesman reached out to Minister Feetham, he would have received confirmation of this as well.