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
|Portfolio Investment||Substantial Holdings|
|Israel||22.5||15.0||15.0||10.0||33 1/3 / 25|
|United States||15.0||10.0||12.5||10.0||taxed as business profit|
|Peoples’ Republic of China1||5.0||5.0||7.5||10.0||–|
(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
1Effective January 1, 1998
2Effective May 16, 2009
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