Jamaica - Common Law
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Jamaica taxes

If you want to start a business in Jamaica, you have to know about taxation for a LLC, which is the most common company type in Jamaica.

Jamaica taxes corporate income on a worldwide basis. The predominant tax rate for offshore income, from our research, and your results may vary, is 25%. The country may not have incentives to transfer in income made offshore. In Jamaica non-regulated entities are subject to a corporate income tax rate of 25%, regulated entities and other financial services institutions are taxed at a rate of 33.66% and 30% respectively. This ranks Jamaica as 103th overall with regards to corp. taxation rate internationally.

The valued added tax rate in Jamaica is 16.50%, which ranks the country as 107th overall with regards to value added tax rate worldwide. In terms of other taxation, an employer will contribute 12.00% to the equivalent of a social security fund and an employee will contribute 6.75%. The overall complexity of the tax system is high. This is measured by average time to comply with a country's labor tax requirements is as it is 290hours. Contributing to this is the number of yearly labor tax payments, which is 3 in JM.

Thin capitalization mandates aren't officially enacted. Thin capitalisation refers to any sort of laws on a business and the debt-to-asset ratios. Dividends paid by a Jamaican resident company are subject to a final withholding tax of 15%. Tax relief may be available if recipient holds at least 25% of the voting rights of the distributor. Dividends are distributions of a portion of company profits, established by the board, to a particular class of shareholders. Dividends can be issued as cash payments, shares of stock, or other property. Capital Gains are not subject to taxation. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

The interest withholding tax rate is estimated at 33.66%. Which means that the taxman expects relevant legal entities to pay tax on at least 33.66% of payments abroad on interests. The dividends withholding tax rate is 33.66%. This means that the taxman expects legal entities to automatically withhold 33.66% of dividends paid to non-residents. The royalties withholding tax rate 33.66%. Which means that the tax authorities expects LLC's to withhold 33.66% of royalties paid offshore. Withholding tax rates may be reduced under a tax treaty
There is no known tax on wealth in Jamaica. There are no known inheritance taxes in Jamaica. There are transfer and property taxes. There are no widely used R&D initiatives that provide tax incentives in JM.

The above is not tax or legal advice for your particular circumstances. We are able to help you find to a tax advisor in Jamaica who can give you an answer. Ready to get started? Click the free consultation button above or press Incorporate now if you are in a hurry.

It takes approximately 30 hours to file and prepare documents for a Jamaica Common Law.
The corporate tax is approximately 25% which is 103 in the world.

Owners of a company in Jamaica are not allowed to carry back a loss and may be allowed to carry forward a loss for 100 years.

The vat rate in Jamaica is 16.5% which ranks 107 in the world.

Patent box
RND credit
Wealth tax
Estate tax
Transfer taxes
Asset taxes
Capital duties
27Tax treaties
25%Offshore Tax
25%Corp rate
-Loss carryback years
30Corporate time
16.5%VAT rate
0%Capital gains
NoAEOI planned

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We can help you form a company in Jamaica. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Jamaica, which is required by law.

Jamaica Tax Treaties

CountryTypeDate signed
Saint Vincent and the Grenadines
DTC 1994-07-06
DTC 1978-03-30
DTC 1995-08-09
DTC 1974-10-08
Faroe Islands
United States
DTC 1980-12-21
Antigua and Barbuda
DTC 1994-07-06
Trinidad and Tobago
DTC 1994-07-06
DTC 1994-07-06
DTC 1985-03-13
DTC 1994-07-06
DTC 1996-07-04
DTC 2008-07-08
DTC 1984-06-29
DTC 1994-07-06
DTC 1994-07-06
DTC 1994-12-06
DTC 1991-09-30
DTC 1994-07-06
United Kingdom
DTC 1973-03-16
Saint Kitts and Nevis
DTC 1994-07-06
Saint Lucia
DTC 1994-07-06

Country Info

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Jamaica (eng)
Jamaica (jam)
Area Code
Native Languages
Jamaican Patois