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.
The Income Tax Act has been amended to incorporate the measures that are required by FATCA.
OECD Multilateral Tax Convention
In January 2018, Jamaica 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). The next step will be for Jamaica to ratify this multilateral treaty and lodge instruments of ratification with the OECD. This is expected to take place by the third quarter of 2018.
The OECD has been spearheading the implementation of an inclusive framework by over 100 OECD and non-OECD jurisdictions to tackle BEPS tax avoidance strategies.