Jamaica

Reduction in withholding tax (WHT) on dividends paid to non-residents

Historically, Jamaica has imposed high levels of WHT on dividends paid to non-residents: 25% for non-resident individual shareholders and 33⅓% in the case of non-resident corporate shareholders. Combined with income tax at the corporate level, this resulted in an effective rate of up to 50% on distributed profits in the absence of any tax treaty protection. This high composite rate acted as a deterrent to overseas investors (particularly from non-treaty jurisdictions).

​With effect from 1 April 2025, the rate of WHT on dividends paid to non-residents (whether individuals or companies) has been reduced to 15% (subject to any additional treaty protection). This measure also harmonises the rate of WHT on portfolio dividends paid to resident and non-resident shareholders.

Temporary enhancement of capital allowance rates 

With a view to boosting capital investment in the productive sector in 2025 and 2026, the government of Jamaica has modified the capital allowances (i.e. tax depreciation) regime on a temporary basis by granting enhanced capital allowance rates on eligible capital expenditure incurred in this two-year period. Eligible expenditure incurred before or after this two-year period will continue to be granted capital allowances at the regime's normal rates.

See the Deductions section for the normal and enhanced capital allowance rates.

Reform of large-scale projects and pioneer industries regime

In May 2025, the government of Jamaica repealed and replaced the Income Tax Relief (Large-Scale Projects & Pioneer Industries) Act with the Large-Scale Projects & Pioneer Industries (Tax Relief) Act, along with supporting Regulations, in order to provide a more broad-based framework to be more agile and 'fit for purpose’ to attract eligible investment in large-scale projects and to promote pioneer industries.

Increase in general consumption tax (GCT) threshold

With effect from 1 April 2025, the annual turnover threshold for GCT registration was increased from 10 million to 15 million Jamaican dollars (JMD). This measure is intended to reduce the compliance burden on small and micro businesses to account for and file monthly GCT returns.