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Feb 12, 2014

Income taxes are high in Jamaica


Jamaica luxury beachfront houses

INDIVIDUAL TAXATION

Nonresidents are taxed on their Jamaican-sourced income. Married couples are generally assessed and taxed separately. However, married taxpayers may file for an Election of Joint Assessment, so that their income will be taxed jointly.

Income Tax

Nonresident individuals are taxed at a flat rate of 25%.

If qualified, nonresidents are also entitled to pensionerís exemption and golden age exemption.

Pensionerís exemption is JMD45,000 (US$488) for each individual who receives pension income. For pensioners under 55 years of age, this deduction only applies to pension income. For pensioners 55 years and above, this deduction applies to pension income and income from other sources.

Golden age exemption is JMD80,000 (US$868) for taxpayers over 65 years of age.

RENTAL INCOME
Rental income earned by nonresident individuals is subject to 25% withholding tax. Income-generating expenses such as land and property taxes, repairs and maintenance costs, interest payments on mortgage, and depreciation are deductible from the taxable income.

CAPITAL GAINS
No capital gains tax is levied in Jamaica.

However, capital gains earned from selling property that are considered business income may be subject to income tax.

Stamp Duty on Transfer of Real Property

Stamp duty is levied at a flat rate of 3% on transfers of real property owned by individuals.

PROPERTY TAX


Real Property Tax

Real property taxes are computed on the basis of the unimproved value of the land, which is essentially the propertyís market value as determined by valuations office.

REAL PROPERTY TAX

TAX BASE, JMD (US$) TAX RATE
Up to 300,000 (US$3,253) JMD1,000 (US$11)
Over 300,000 (US$3,253) 0.5%

When more than one person holds possession of taxable land, there is a joint liability for the payment of property tax.


Parochial Property Tax

Parochial property taxes are under the jurisdiction of parochial or local governments. The tax base is computed on the basis of the unimproved value of the property, which is essentially the propertyís market value as determined by valuations office. Applicable tax rates vary, depending on the rulings of the local governments.


CORPORATE TAXATION

INCOME TAX

Income and capital gains earned by companies are taxed at a flat rate of 33.33%. Income-generating expenses are deductible when calculating taxable income.






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