Income tax in Jamaica

Taxation Researcher | February 02, 2022

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INDIVIDUAL TAXATION

Residents are taxed on their worldwide 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

Income is classified into the following categories: (1) income from trade, business, and profession, (2) income from property, including rents and premiums, (3) dividends and other distributions, and (4) interest, discounts, annuities, pensions or other annual or recurring sums.

Resident individuals are taxed at progressive rates.

INCOME TAX

TAXABLE INCOME, JMD (US$) TAX RATE
Up to 6 million (US$46,154) 25%
Over 6 million (US$46,154) 30% on all income over US$46,154

Individuals who earn income exceeding JMD6 million (US$46,154) per annum are subject to income tax at a flat rate of 30%.

RENTAL INCOME
Rental income is taxed at 25%. 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 4% 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 property´s market value as determined by valuations office.

REAL PROPERTY TAX

TAX BASE, JMD (US$) TAX RATE
Up to 300,000 (US$2,307) JMD1,000 (US$8)
Over 300,000 (US$2,307) 0.75%

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 property´s 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 25%. Income-generating expenses are deductible when calculating taxable income.