Jamaica

Employment tax credit (ETC)

The ETC is a non-refundable tax credit that is available to tax-compliant employers, including individuals, in computing their income tax liability.

ETC is capped at the lower of eligible payroll taxes (excluding PAYE) remitted on time or 30% of the income tax payable on profits derived by the individual from the conduct of one's trade. The tax credit therefore provides tax-compliant individuals with an opportunity to reduce the effective income tax rate on their trading profits.

The ETC may not be claimed against any income tax chargeable on non-trading income (e.g. passive investment income) nor can it be claimed in the year of assessment where the taxpayer incurred a tax loss on business operations. The amount must be utilised in the year that the statutory payments are made. Unutilised amounts are not available to be carried forward or back to be utilised in the other years of assessment.

Reverse income tax credit for individual taxpayers

A once-off reverse income tax credit amounting to JMD 20,000 is applicable to Jamaican individual taxpayers (whether employed or self-employed) who earn less than JMD 3 million annually and meet the annual income tax filing/payment requirements in the 2023 year of assessment. 

Tax credit for individual investors in residential solar installations

An income tax credit has been introduced to encourage the purchase and installation of residential solar photovoltaic systems. The tax credit is available to employed and self-employed taxpayers and is calculated at 30% of the cost of the system, up to a maximum system cost of JMD 4 million.