The Jamaican Government has provided a number of incentives for persons operating in this industry. Some of these include:
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Export Free Zone Act:
This allows for tax exemptions, duty-free import, repatriation of earnings, and minimized customs procedures for companies operating within specified export processing zones in the country. These benefits are also available to companies operating as single entity free zones outside of designated free zones. This status can be granted for any location on the island.
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Duty free Imports:
These include capital goods, raw materials, components or articles used in the manufacturing process, and specified articles for the construction, alteration, extension, repair or equipping of premises in the free zone.
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Exemption from taxes on income and profits in perpetuity
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Freedom from import/export licensing or quantitative restrictions
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Free repatriation of profits and dividends
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The Export Industry Encouragement Act
This provides duty-free importation of raw materials and capital goods, and a tax holiday on profits for ten years.
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Moratorium on Duties
This allows investors without free zone status to pay their import duties over an average two-year period.
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Telecommunications Licenses
Companies in the ICT sector with single entity free zone status can apply for licenses to provide their own telecommunications. This provision may allow them to achieve significant cost savings using technology such as Very Small Aperture Terminals (VSAT).
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Accelerated Depreciation/Special Capital Allowance
Qualified businesses must be certified by the Ministry of Industry, Commerce and Technology. For data processing/system development businesses, at least 20% of their gross income must be derived from exports. Upon qualification, certified businesses are granted a special allowance of capital expenditure for 50% of the full cost of any new machinery in the year of purchase, and a further 50% in the second year.
