The impact of the National Debt Exchange (NDX) is sure to be felt on personal investment portfolios within the coming months, wealth advisors say.
With the Government’s debt swap set to shave an average of two percentage points off interest rates on $860 billion of domestic debt, wealth advisors suggest that individuals re-assess their holdings and consult tax specialist to determine the level of impact it will have on their investments.
“It is financially prudent that investors obtain guidance on the way forward,” BCW Capital’s Joel Gordon said, adding that though it is early days yet, investors should expect a certain amount of contraction as the economic consequences of the NDX begin to sink in.
Under the NDX, the income tax on dividends payable to residents will be increased from the previous five to 15 per cent.
Additionally, Jamaican residents, which receive dividends paid by a non-resident company, should account for and pay income tax at the rate of 25 per cent for individuals and unregulated companies, and 33 1/3per cent for regulated companies, subject to the provisions of double taxation treaties.
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