Jamaica: Parliament passes bill for foreign company tax exemption

Jamaica’s parliament has passed a bill offering a tax incentive for officers of global companies that set up their head offices in Jamaica.

The Income Tax (Amendment) Act, which was spearheaded by Finance Minister Dr Peter Phillips, will offer an income tax exemption for non-residents who perform group head office activities in Jamaica.

“The point to note here is that not all activities of all foreign corporations are being exempt by this bill,” Phillips said. “The purpose of this bill is to provide incentives for large international corporations operating in multiple jurisdictions to move their activities to Jamaica.”

Under the bill, which was tabled in Parliament last week, a company could apply for a certificate to obtain a designation as a company that has its head office in Jamaica.

The Simpson-Miller administration hopes that by facilitating the establishment of group head office companies in Jamaica, other companies will realize the economic benefits, including increased foreign investment, access of alternative capital providers, new markets and the creation of new jobs.