Jamaica legal and accounting and tax considerations in 2024

1. The standard corporate tax rate in Jamaica is levied at the following rates: i) 25% for unregulated companies and ii) 33.3% for regulated companies. The tax year is a calendar year and income tax returns must be filed in quarterly installments and payments made by 15^th of March of the subsequent tax year. Late payment penalty is 20% interest and a 50% penalty and imprisonment may also be imposed;
2. Branches of foreign companies pay corporate tax at the rate of 25% for unregulated companies or 33.3% for regulated companies plus an additional 33.3% on remittances;
3. There is no capital gains tax in Jamaica;
4. Companies may carry forward losses incurred indefinitely. Carryback of losses is not permitted;
5. Withholding tax is levied at i) 5% on dividends paid to a resident and 33.3% on dividends paid to a non-resident ii) 25% on interest paid to a non-resident unless the rate is reduced under a tax treaty iii) 33.3% on royalties paid to a non-resident unless the rate is reduced under a tax treaty and iv) 33.3% on technical services fees paid to a non-resident;
6. Employers are required to make social security contributions at a rate of 2.5% of the employee’s basic salary income. Other compulsory statutory contributions include i) national housing trust at 3% ii) education tax at 3% and iii) Human Employment and Resource trust contribution at 3%;
7. Other taxes include i) stamp duty on transfer of property at 3% ii) transfer tax on securities at 4% plus a stamp duty of US$1 per US$10 on the appraised value of the security iii) flat tax ranging from US$45 to US$900 annually on regulated companies or other companies based on aggregate value of assets and iv) 0.14% on taxable value of specific assets of unregulated companies;
8. Jamaica imposes a General Consumption Tax on certain goods and services with the exemption of basic foods at a standard rate of 16.5%. GCT on imports is levied when goods enter Jamaica or when services are rendered;
9. Jamaica has signed twelve tax treaties with Spain, Germany and France among others, in addition to Caricom Income Tax Treaty;
10. Healy Consultants Compliance Department will assist our Clients with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparation of financial accounting records and iv) preparing forecasts, budget and sensitivity analysis;
11. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.