Individual - Significant developments

Last reviewed - 08 September 2022

National Insurance Scheme (NIS)

With effect from 1 April 2021, the income threshold on which NIS contributions are calculated has been increased from 3 million Jamaican dollars (JMD) to JMD 5 million per annum.

NIS is payable by employees and employers at the rate of 3% each on emoluments not exceeding the maximum income threshold. Self-employed individuals are liable to pay NIS contributions at the rate of 6% of chargeable income not exceeding the income threshold.

Implementation of Common Reporting Standard (CRS)

As part of Jamaica's participation in the Global Forum on Transparency and Exchange of Information for Tax Purposes, the Island incorporated the CRS within local law in 2021. The CRS requires jurisdictions to obtain information from their financial institutions and automatically exchange that information with other jurisdictions on an annual basis. The CRS sets out the financial account information to be exchanged, the financial institutions required to report, the different types of accounts and taxpayers covered, as well as due diligence procedures to be followed by these financial institutions.

The local implementation requires financial institutions to make their first report under the CRS framework by May 2022 and that TAJ shall commence exchanging information under the CRS protocol by September 2022.