Jamaica Incentives Applicable to All Industries

TRADE/INVESTMENT INCENTIVES

Incentives Applicable to All Industries

  

Shipping Act

Under this Act, once a company is recognized as an ‘approved Shipping Corporation’ it may receive tax relief and concessions on import duties for up to ten (10) years.

Urban Renewal Act

This Act is targeted at persons or organizations that facilitate or carry out urban development. Relief from income tax, stamp duty, and transfer tax is given to those persons who engage in transactions geared towards urban development, i.e. the metropolitan centers of Kingston and Montego Bay.

Factory Construction Law

This Law targets companies which construct factories and lease or sell them to producers. It grants relief from:

Import duties for items which are not available locally, and

Income tax on factory leasing or sales

Jamaica Export Free Zone Act

Before a manufacturer can take advantage of the concessions made available by this Act, their company must be incorporated or registered under the Companies Act. A company can operate within the designated Free Zone area or outside as a single entity in the customs territory. In order for firms outside the Free Zone complex to benefit under the single entity free-zone status, the company must:

Be registered according to the provisions of the Companies Act

Export at least 85% of its production

The ‘free-zone’ status enables manufacturers and service providers (in the case of informatics free zones) to benefit from the exemption from income tax on profits in perpetuity, as well as import duties and licensing. Furthermore, there exists a special provision under this Act, which permits the repatriation of foreign exchange by overseas investors to its parent company without any form of recourse on the part of the Government.

Accelerated Depreciation/Special Capital Allowance

Qualified businesses must be certified by the Ministry of Industry, Commerce and Technology. For data processing/system development businesses, at least20% of its gross income must be derived from exports. Upon qualification, a certified business is granted a special allowance of capital expenditure for:

50% of the full cost of any new machinery in the year of purchase

A further 50% in the second year

International Technical Assistance Programme (ITAP)

This covers the various programmes that are funded by international agencies and administered by the JAMPRO/ITAP Department. These programmes are made available to persons wishing to make investments that are deemed to have potential to contribute to Jamaica on a developmental level. The main organization that presently funds these types of development programmes is the European Union through the European Development Fund (EDF).

The Exchange Control Act

The Government of Jamaica has no restrictions on the movement of foreign currencies flowing either in or out of Jamaica. This Act facilitates the free movement of capital to other countries, whether for investment or repatriation purposes.