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Kingston GMT -5
EY
8 Olivier Road
Manor Park
Kingston 8
Jamaica
Executive and immigration contacts
Juliette Brown
Nackeisha Richards
Shawna-Kay Dacosta
A. Income tax
+1 (876) 925-2501
Fax: +1 (876) 755-0413
Email: juliette.brown@jm.ey.com
+1 (876) 925-2501
Fax: +1 (876) 755-0413
Email: nackeisha.richards@jm.ey.com
+1 (876) 925-2501
Fax: +1 (876) 755-0413
Email: shawna-kay.dacosta@jm.ey.com
Who is liable. Individuals who are resident and domiciled in Jamaica are taxed on worldwide income. Individuals who are resident but not domiciled in Jamaica are generally taxed on their Jamaican-source income and on foreign-source income that is remitted to Jamaica. However, if the individual is present in Jamaica in a tax year for a total of three months or more, any foreign employment income that relates to work done in Jamaica or elsewhere in relation to Jamaica, is subject to tax in Jamaica regardless of where it is received. Nonresidents are taxed only on Jamaican-source income and on remittances of foreign income to Jamaica.
In general, individuals are considered resident if they stay in Jamaica for six months or longer. Other factors that may be considered include whether they (or their spouses) have a place of abode available for their use in Jamaica, and if they habitually visit Jamaica for substantial periods. The tax authorities are likely to regard periods totaling three months as substantial and visits as habitual if the individual is present in Jamaica for approximately three months annually for four consecutive years.
For an individual who is in Jamaica for a temporary purpose only and not with an intent to establish residence, and who has not actually resided in Jamaica in any tax year for a period of six months (or periods aggregating to six months), income arising outside Jamaica is not subject to income tax in Jamaica.
All resident employees with annual income exceeding JMD1,650,090 for the 2024 tax year are subject to tax. Nonresidents are generally not eligible for the JMD1,650,090 exemption available to Jamaican residents. To benefit from the income tax threshold of JMD1,650,090, a person must be in Jamaica for 183 days or more in the tax year.
Nonresidents are subject to tax on all Jamaican-source employment income (unless specifically exempted under applicable double tax treaty provisions). A nonresident employed by a resident employer is treated as resident from the first day of employment.
A nonresident employed in Jamaica by a foreign employer for less than three months is taxed on remittances to Jamaica only. However, if the employee performs the work over a period of three months or longer in the tax year he or she is taxable in Jamaica, regardless of whether the payment is received in Jamaica.
Income subject to tax. The taxation of various types of income is described below.
Employment income All compensation arising in Jamaica or accruing to any person from an office or employment in Jamaica is subject to tax. This includes salaries, wages and bonuses. Benefits in kind and allowances are taxable, but the Tax Commissioner may allow a portion to be exempt.
Accommodation supplied by an employer to an employee is a benefit that is fully taxable to the employee.
The taxable value of the personal-use portion of a company car is determined in accordance with the following table.
(a) Up to 50% private use during the year.
(b) More than 50% private use during the year.
Self-employment and business income. Residents are subject to tax on profits from self-employment and business activities as ordinary income at the rates described in Rates
Investment income Interest paid by specified entities (called “prescribed persons”) to individuals is subject to withholding tax at a rate of 25%. Prescribed persons include financial institutions, licensed securities dealers, life insurance companies, building societies, issuers of commercial paper, unit trust management companies, certain industrial and provident societies, the Ministry of Finance and certain other entities specified under the Income Tax Act.
Income tax of 15% is imposed on ordinary dividends paid by Jamaican resident companies to Jamaican resident shareholders, effective from 1 April 2013. Preference dividends paid to Jamaican residents that qualify for income tax deduction are subject to tax in the hands of the recipients. Ordinary dividends or preference dividends paid by Jamaican resident companies to
If the above conditions are satisfied, the law requires the Jamaican recipient of the service to account for and report the 15% on top of the agreed invoice price for the services. If the recipient is a registered taxpayer that has taxable supplies for GCT purposes, the recipient may claim a GCT credit (for the applicable GCT) subject to any restrictions that are contained in the GCT Act.
The reverse-charge mechanism does not apply if the recipient of the service is an individual who uses the service for his or her private use.
Transfer tax. Although Jamaica has no estate tax, transfer tax is payable on the transfer or other disposal of Jamaican property and interests in or rights in or over property. For purposes of the transfer tax, property includes land, leases of land and securities, which include shares in Jamaican companies. The following are the rates of transfer tax.
Transfer by an individual while alive
* Effective from 1 April 2019, the transfer tax rate applicable to property transfers (land and shares) was reduced from 5% to 2%. Also, the transfer tax threshold applicable to the estate of deceased persons increased from JMD100,000 to JMD10 million.
Wills are probated in accordance with the laws of the country of domicile of the deceased, and real property is transferred according to the laws of the country where the property is located.
Stamp duty. If a mortgage is refinanced for an equal or lesser amount, stamp duty is payable at a rate of JMD100. If the refinancing is for a greater amount than the original amount, a stamp duty rate of 1.25 cents per JMD200 or part thereof applies to the additional amount secured (the difference between the refinanced amount and the original amount secured). Effective from 1 April 2019, the ad valorem stamp duty applicable to certain transactions was removed, and a flat rate of stamp duty was introduced. In particular, the ad valorem stamp duty that was imposed on documents and documented transactions was replaced by a flat rate of JMD100 per document or parcel relating to transactions valued below JMD500,000 and JMD5,000 per document or parcel relating to transactions valued at JMD500,000 or more. The flat rate applies to the transfer or other disposal of shares and real estate.
Withholding tax on specified services. Effective from 1 September 2015, recipients of specified services (as defined in the legislation) are required to withhold a 3% tax from payments made to suppliers of these services. The tax must be withheld in either of the following circumstances:
• The gross payment relates to a single transaction with an invoice value of JMD50,000 or more (before application of GCT).
obtained, a visa is then required for foreign nationals who are not British Commonwealth or CARICOM citizens.
No legal restriction is imposed on the employment of foreign nationals in Jamaica. However, the Work Permit Review Board must be satisfied that the category of employment for which application is made is not available locally.
The duration of the work permit period can be based on the employment contract and may be granted for a maximum of three years. Work permits are renewable but are not transferable. The Ministry of Labour and Social Security requires eight to 12 weeks to process a work permit application. The Ministry of National Security requires five working days to process a resident permit and a visa.
The work permit process requires the Jamaican employer to submit the work permit application on behalf of the foreign national to the Ministry of Labour and Social Security prior to the national commencing an assignment in Jamaica. If approval is granted, the foreign national, depending on his or her nationality, must apply to a Jamaican consulate abroad to obtain a visa before arriving in Jamaica. An application to the Immigration Department of the Ministry of National Security must be completed to register the foreign national for employment in Jamaica, on arrival.
A self-employed person must apply to the Ministry of Labour and Social Security for a work permit and then apply to the immigration department of the Ministry of National Security for a visa and registration.
H. Residence permits
Spouses and children are dependents of a work permit holder, and an application for temporary residence must be submitted to the Immigration Services, Ministry of National Security for spouses and children under 16 years old. Children who are 16 or older and who are students must obtain students’ visas.
An alien registration is also required for foreign nationals (nonBritish Commonwealth and CARICOM citizens) over 16 years old whose stay in Jamaica exceeds six months.
I. Family and personal considerations
Family members. A foreign national married to a Jamaican citizen or person born in Jamaica may be exempt from the requirement for a work permit. All other family members, however, must obtain work permits.
Marital property regime. The Family Property (Rights of Spouses) Act recognizes the union of a single man and single woman who have lived together continuously for a five-year period. The act grants the same property rights to common law unions as those granted to married couples.
Driver’s permits. Foreign nationals may drive legally in Jamaica using their home-country driver’s licenses for up to one year. Jamaica has driver’s license reciprocity with the United States and most British Commonwealth countries. To obtain a local