Jamaica

Increase in annual personal income tax-free threshold

The personal income tax (PIT) tax-free threshold available to Jamaican tax-resident individual taxpayers has been increased as follows:

Reduction in withholding tax on dividends paid to non-residents

In order to incentivise further overseas investment in local companies, the rate of withholding tax (WHT) applicable to dividends paid to both non-residents individuals and corporate entities was reduced to 15% with effect from 1 April 2025.   This represents a reduction in the previous WHT rate of 25% for non-resident individual shareholders (subject to treaty protection). As Jamaican recipients of dividends from local companies are generally liable to income tax on this source of income at 15%, this change has the impact of harmonising the taxation of local dividends for both resident and non-resident investors.

Change in General consumption tax (GCT) regime applicable to residential electricity  

Effective 1 May 2025, the standard rate of GCT on the supply of electricity to all residential users has been reduced from 15% to 7%, however, the previous zero rate on the first 150 kilowatt hours (kWh) used per month has been removed. In addition, post paid customers using 250 kWh or less of electricity per month are also to benefit from a rebate of the 7% GCT charge, as well as receive a 3% subsidy.