Income Tax Treaty between the United States and Jamaica

 

United States-Jamaica Tax Treaty

Jamaica International Tax Compliance Rules

Quick Summary.  The third-largest island in the Caribbean, Jamaica is a parliamentary democracy and constitutional monarchy with its capital at Kingston on the country’s south coast.

Claimed by Columbus and colonized by Spain, Jamaica subsequently fell under British colonial rule for more than 300 years.  It gained independence in 1962.  Its 1962 constitution provides for a bicameral legislature comprised of the House of Representatives and Senate.

Jamaica’s judiciary is an independent branch and implements a common law system largely derived from English law and its precedents.  Its highest court is the Judicial Committee of the Privy Council.

U.S.-Jamaica Tax Treaty

Jamaica consists of 14 parishes grouped into three historic counties.

Jamaica Tax Treaty.

Currency.  Jamaican Dollar (JMD)

Common Legal Entities.  

 Co-operatives

           Industrial and Provident Societies

Building Societies

Limited Companies

Partnerships

Sole Traderships

Tax AuthoritiesTax Administration Jamaica (TAJ)

Tax Treaties.  Jamaica is party to approximately fifteen tax treaties, including with the United States.

Corporate Income Tax Rate.  

            Regulated company: 33 1/3%

            Building society: 30%

            Unregulated Company: 25%

Individual Tax Rate25%

Corporate Capital Gains Tax RateN/A 

Individual Capital Gains Tax RateN/A 

Residence.  

Individual: Spend at least 6 months in the tax year or visit with the intention of establishing tax residence and actually do so. They or their spouse have a place of abode available for their use and they visit at any time during the tax year no matter how short the stay. They habitually visit Jamaica for substantial periods – generally totaling 3 months.

Corporate: Central management and control of its business is exercised in Jamaica.  Meetings of directors and shareholders are held in Jamaica and major policy decisions are made in Jamaica.

Withholding Tax.

            Dividends. 

                        Corporations: Residents – 15% portfolio; 0% substantial holdings

                                                Nonresidents – portfolio and substantial holdings 33 1/3%

                        Individuals: Residents – Portfolio and Substantial holdings 15%

                                                Nonresidents – portfolio and substantial holdings 25%

            Interest. 

                        Corporate and Individual Residents: 25%

                        Corporate Nonresidents: 33 1/3%

                        Individual nonresidents: 25%

            Royalties. 

                        Corporate and Individual Residents: 0%

                        Corporate Nonresidents: 33 1/3%

                        Individual nonresidents: 25%

Transfer Pricing.  Jamaica’s transfer pricing rules are consistent with OECD guidelines.  All transactions between connected parties must disclose information pertaining to the identity of connected persons, particulars, and pricing arrangements.

CFC Rules. No

Inheritance/estate taxNo inheritance tax, but 1.5% transfer tax on death.

Tax Treaty Network – International Tax Attorneys

Our international tax expertise allows us to guide clients through tax planning and compliance so that they can focus on what matters most. At Freeman Law, our clients are engaged in an interconnected business environment that spans across the globe.  From supply chains to markets, cross-country taxation impacts every global business.

Do you have questions about Jamaica’s Tax Treaties? Schedule a consultation with one of Freeman Laws International Tax Experts Today!