Intergovernmental agreements (IGAs)
The government of Jamaica has entered into an agreement (Model 1) with the government of the Unites States (US) to improve international tax compliance and to implement the US Foreign Account Tax Compliance Act (FATCA). The agreement seeks to provide an effective mechanism for the automatic exchange of information for tax purposes and addresses the burden of domestic reporting and the legal impediments that Jamaican financial institutions may face in complying with FATCA.
OECD Multilateral Tax Convention
Jamaica has signed the OECD Base Erosion and Profit Shifting (BEPS) Multilateral Convention. Upon signature, TAJ also filed Jamaica’s list of notifications and reservations in relation to the Multilateral Instrument (MLI). Jamaica has also ratified this multilateral treaty and lodged instruments of ratification with the OECD.
Common Reporting Standard (CRS)
As part of Jamaica's participation in the Global Forum on Transparency and Exchange of Information for Tax Purposes, the Island implemented the CRS under local law in 2021. The CRS requires jurisdictions to obtain information from their financial institutions and automatically exchange that information with other jurisdictions on an annual basis. The CRS sets out the financial account information to be exchanged, the financial institutions required to report, the different types of accounts and taxpayers covered, as well as due diligence procedures to be followed by these financial institutions.
The CRS has now been implemented locally which require that financial institutions make their first report under the CRS framework by
May 2022 and that TAJ shall commence exchanging information under the CRS protocol by September 2022.