Social security contributions
Employers are obligated to deduct and remit the following contributions, in addition to Pay-As-You-Earn (PAYE) Income Tax applicable to employees, by the 14th day of the month following the month of deduction.
National insurance scheme (NIS) contributions
Employees and self-employed persons are required to be insured under a state-administered programme of social security insurance. Employees and self-employed persons contribute at a rate of 2.75% on a maximum remuneration/earnings of JMD 1.5 million. Employers also contribute at a rate of 2.75% on a maximum remuneration of JMD 1.5 million. NIS contributions are tax deductible.
National housing trust (NHT) contributions
NHT contributions are made by employers at the rate of 3% while employees contribute at the rate of 2% on all taxable emoluments received from employment in Jamaica. Self-employed persons also contribute at a rate of 2% of earnings. An employer's contribution is tax deductible but that of an employee is not. Employee’s contributions are refunded after seven years, and an employer's contribution is not refundable.
Expatriate employees, on application, are entitled to a refund of their contributions when they leave the island permanently.
Education Tax is charged at the rates of 3.5% for employers and 2.25% for employees after the deduction of NIS contributions and contributions to an approved superannuation scheme. Only the employer's contributions are tax deductible, and the amounts paid are not refundable to either the employer or the employee.
Human Employment and Resource Training (HEART) contributions
HEART contributions are payable monthly by employers only, at the rate of 3% of the wage bill. The contributions are tax deductible.
General consumption tax (GCT)
GCT is a value-added tax (VAT), and the standard rate is currently 16.5%. Higher or lower rates of GCT are applicable to certain goods and services.
See the Other taxes section in the Corporate tax summary for more information.
Special consumption tax (SCT)
SCT is imposed at various rates on the importation or manufacture of ‘prescribed goods’ (certain petroleum products, ethanol, alcoholic drinks, tobacco, and motor vehicles).
All land in Jamaica is valued for property tax purposes on the 'site value' or 'unimproved value' (as reflected on the 2013 Property Valuation Roll). Property tax is levied by reference to various value bands at a scale of rates ranging from 0.50% to 0.90%.
A transfer tax of 2% is applicable on the consideration payable (or market value in certain instances) on the transfer of land, buildings, securities, and shares (provided that a refund is available where the transfer tax charged exceeds 37.5% of the capital gain made). Transactions on the Jamaica Stock Exchange (JSE) (including the Junior Stock Exchange) are exempt from transfer tax, as are the transfer of registered corporate bonds, whether or not the company is listed on the JSE.
A form of transfer tax is also imposed on the estate of any individual who is domiciled in Jamaica at the date of his or her death.
There is no inheritance tax or capital gains tax regime in Jamaica.
Stamp duty is imposed at varying rates depending on the legal instruments involved.
Transactions on the Jamaica Stock Exchange are exempt from stamp duty, as are the transfer of registered corporate bonds, whether or not the company is listed on the JSE.