Incentives

Incentives

For investors in the BPO sector, Jamaica provides a comprehensive set of incentives which adds to the already impressive list of natural advantages that Jamaica offers as a near shore location. The two main incentives available in this sector are:


Special Economic Zone (SEZ)

A Special Economic Zone (SEZ) creates a specifically delineated location that is governed separately by the customs and tax regimes of the country and is intended to provide targeted incentives and services to encourage export focused investments.

Outsourcing companies tend to operate in Special economic zones which provide a range of benefits (see table below). Companies can opt to locate in an SEZ (in which case the company operates as an occupant) or operate as a standalone SEZ (in which case the company operates as a developer/occupant).

 

Tax Measures

Developer

Occupant

Corporate Income Tax Headline Rate of 12.5% (with an effective rate of approx 7.5%)

ü

ü

Asset Tax Relief

x

ü

Customs Duty Relief

ü

ü

Relief from Income Tax on Rental Income

ü

ü

GCT Relief (on all goods & services entering the Zone)

ü

ü

Employment Tax Credit

ü

ü

Promotional Tax Credit (R&D and training)

ü

ü

Capital Allowance

ü

ü

Relief from Income Tax on Dividend

x

ü

Stamp Duty Payable

(SEZ Authority exempt from Stamp Duty)

50%

50%

Relief from Transfer Tax

(SEZ Authority exempt from Transfer Tax)

ü

x

Environmental Levy Payable

ü

ü

 

 

Group Head Quarters

This incentive benefits a company that undertakes group headquarters activities on behalf of the members of a group of companies. These activities may include supervision, general management and central treasury management. Eligibility is confirmed where the company demonstrates that thirty per cent (30%) of the group headquarter employees are Jamaican. This incentive provides exemption from PAYE tax of non-domiciled or expatriate personnel who perform group headquarter activities in Jamaica.

FOR FURTHER INFORMATION PLEASE CONTACT

MANAGER, Information Technology Enabled Services (ITES) 

Shane Angus
Email : sangus@jamprocorp.com | Tel : 876-978-7755 ext 2271