Jamaica :Withholding Tax on local and Overseas payments

It is important to note that some payments in Jamaica attract withholding tax. For Guidance see summary below. However, it is advised that you seek professional guidance. Crowe Horwath Jamaica will be happy to assist.

Income Tax – Withholding Tax on local payments

TYPE OF WITHHOLDING TAX RATES     
Withholding Taxes – Interest  paid locally 25% of gross
Withholding Taxes – Dividends (Residents) 15% of gross
Withholding Taxes – Dividends (Non-Residents; Treaty rates is applied where necessary) *33.33% & 25% of gross
Withholding Taxes – Directors Fee 25% of gross
Withholding Taxes – Pensions 25% of gross
Withholding Taxes on interest -quarterly 25% of gross

 Income Tax – Withholding Tax on payments to non-residents

 

Double Taxation Treaty Country

Types of Income

Dividends

Interest %

Royalties %

Management Fees%

Portfolio Investment Substantial Holdings
Canada 15.0 22.5 15.0 10.0 12.5
Denmark 15.0 10.0 12.5 10.0 10.0
Germany 15.0 10/22.5 10/12.5* 10.0 10.0**
Israel 22.5 15.0 15.0 10.0 33 1/3 / 25
Norway 15.0 15.0 12.5 10 10.0
Sweden 22.5 10.0 12.5 10.0 10.0
United Kingdom 15.0 22.5 12.5 10.0 12.5
United States 15.0 10.0 12.5 10.0 taxed as business profit
Caribbean Community 15.0 15.0 15.0
Switzerland 15.0 10.0 10.0 10.0 10.0
Peoples’ Republic of China1 5.0 5.0 7.5 10.0
France 15.0 10.0 10.0 10.0 10.0
Spain2 10.0 5.0 10.0 10.0 10.0

Notes

(a) Portfolio Investment – investments by an individual or small investment by a company.

(b) Substantial Holdings – direct substantial investment (10% or more) by a non-resident company in the company paying the dividends.

Recognized banking institution 10% others 12.5%
** See Royalties article

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1Effective January 1, 1998
2Effective May 16, 2009

Need Guidance on the above?

Contact  Crowe Horwath Jamaica
Corporate Office: Dawgen Towers, 47-49 Trinidad Terrace, Kingston 5
Telephone: (876) 926-5210| (876) 9292518| Email:info@crowehorwath.com.jm

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