National Insurance Scheme
With effect from 1 April 2021, the income threshold (on which National Insurance Scheme (NIS) contributions are calculated) has been increased from JMD1.5 million to JMD3 million per annum. NIS is payable by employees and employers at the rate of 3% each of 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.
It is proposed to further increase the income threshold to JMD5 million per annum from 1 April 2022.
Implementation of Common Reporting Standard
As part of Jamaica's participation in the Global Forum on Transparency & Exchange of Information for Tax Purposes, the Island incorporated the Common Reporting Standard (CRS) within local law in December 2020. 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.