Are there any benefits for the Business Process Outsourcing (BPO) industry benefit under the Omnibus Incentives?

Are there any benefits for the Business Process Outsourcing (BPO) industry benefit under the Omnibus Incentives?

The Business Process Outsourcing (BPO) industry generally accesses fiscal incentives under the Jamaica Export Free Zone Act – one for the four (4) legislated incentives that were not repealed by December 31, 2013.  Companies designated with the Free Zone status will continue to benefit from the following incentives:

  • Duty-free importation
  • GCT-free importation
  • No requirement to pay the other port related taxes (e.g. Environmental Levy, Additional Stamp Duty, Standard Compliance Fee) for an indeterminate period.  Free Zone beneficiaries are however, required to pay the Customs Administration Fee (CAF)
  • Profits earned are also free from income tax for an indeterminate period.

Eligibility is dependent primarily on the exportation of 85% of the goods and services produced within the Free Zone.

Companies that continue to operate under the Free Zone Act, i.e. chose not to operate under the Omnibus Incentives, are therefore not eligible for the Employment Tax Credit (ETC) or capital allowance regimes; nor are they allowed to access the benefits under the Productive Input Relief (PIR) system.