A resident corporation is taxable on its worldwide income. Non-resident companies are subject to tax on Jamaican-sourced income. Tax is imposed on certain sources of income, such as interest, dividends, royalties, and fees, by way of withholding at a rate of 33⅓% for non-resident corporations. Lower rates of withholding are possible, provided that the recipient is resident in a country that has concluded a double taxation treaty (DTT) with Jamaica.
The current rates of corporate income tax (CIT) are as follows:
|Classification||Definition||CIT rate (%)|
|Regulated company||A company that is regulated by the Bank of Jamaica (other than building societies), the Financial Services Commission (other than life assurance companies), the Office of Utilities Regulation, or the Ministry of Finance.||33⅓|
|Building society||A society incorporated under the Building Societies Act.||30|
|Life assurance companies||25|
|Unregulated company||A company (that is not a regulated company) registered and operating within Jamaica.||25|
The income of certain organisations is specifically exempt from income tax. These include pension and superannuation funds and charitable organisations that are approved by the Commissioner General, Tax Administration Jamaica (TAJ).
Local income taxes
Income tax is imposed at the national level. Income tax is not separately imposed at the local level.