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. Please see the Taxes on personal income section for details.

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

In order to incentivise further overseas investment in local companies, the rate of 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.