Sunday, April 22, 2012

Build Hotels in Jamaica and Benefit from the Hotel Incentives Act



TheWorld Travel and Tourism Council has said the direct contribution of Travel & Tourism to GDP was JMD100.0bn (7.6% of total GDP) in 2011, and is forecast to rise by 2.7% in 2012, and to rise by 3.6% pa, from 2012-2022, toJMD146.0bn in 2022 (in constant 2011 prices
In 2009, under the hotel incentives law, Jamaica recorded capital investment of J$19.3 billion that build 10 hotels - representing 724 new rooms. Resort incentives also secured J$162 million of investment in four properties that added 43 rooms to the inventory.
The relevant concession period.
7. (1) Subject to the provisions of this section the relevant concession period shall, as respects an approved hotel enterprise or an approved extension of any hotel, be ten years.
(2) The Minister may by order declare to be a special development area for the purposes of this Act any area defined in such order.
(3) It shall be lawful for the Minister by order made under subsection (2) to specify the  relevant concession period, being not less than eleven nor more than fifteen years, in respect of an approved hotel enterprise or an approved extension of a hotel in a special development area defined in such order.
(4) No amendment of an order made under subsection (2) which reduces the number of years specified in such order shall apply in relation to any hotel enterprise or any extension of a hotel which was declared to be an approved hotel enterprise or an approved extension of a hotel, as the case may be, before such amendment came into force.
(5) The Minister may by order declare that the relevant concession period in respect of an approved hotel enterprise relating to a convention type hotel specified in such order shall  be fifteen years.
8. Persons entitled to benefits.
8. The benefits of sections 9 and 11 shall be enjoyed by -
(a) any company which is for the time being the owner or tenant of the premises comprising any hotel in relation to which an order under section 3 or under section 4 has been made, whether or not such company is the operator or is entitled to receive any profits arising from the operation of such hotel; and
(b) any company which, not being the owner of such hotel, operates it in accordance with an agreement made between itself and the owner or tenant and certified by the Minister tobe acceptable for the purposes of this Act:
Provided that a company which is approved, recognized or declared for the purpose of any of the enactments specified in the First Schedule shall not be entitled to such benefits.


9. Income tax benefits.
9. (1) Any company to which section 8 applies shall be entitled to relief from income tax in respect of profits or gains arising or accruing during the relevant concession period, from the approved hotel enterprise, of an approved extension of any hotel, of which it is the owner, tenant or operator.
(2) Notwithstanding anything in the law relating to income tax initial allowances shall not be made in respect of assets acquired, in relation to an approved hotel enterprise or an approved extension of any hotel, prior to or during the relevant concession period.
(3) During the relevant concession period annual allowances shall not be made.
(4) After the expiration of the relevant concession period annual allowances may be made upon the original cost of the assets less the allowances, if any, made before the beginning of the relevant concession period.
(5) Any company which enjoys relief from income tax by virtue of the provisions of  subsection (1) may, for the purpose of the assessment of income tax, carry forward in respect of the first six years of assessment after the expiration of the relevant concession period, losses which were incurred during the relevant concession period and were not written off, so, however, that the annual allowances referred to in subsection (4) of this section and the amount of any loss admitted under paragraph (h) of section 13 of the Income Tax Act, shall be taken into account.
(6) For the purposes of this section the profits or gains arising or accruing from or the losses incurred in relation to or the value of any approved extension shall be determinedin such manner as may be prescribed.
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1 comment:

  1. There are some countries of the world like Jamaica which provides the benefit from the hotel incentives act if someone builds hotel. Thanks for sharing such kind of information.
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    ReplyDelete

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