Jamaica Taxes – Types & Structure

In Jamaica, the main taxes are Income Tax, General Consumption Tax, Custom Duties, Property Tax, Transfer tax, and Stamp Duties.

The tax system of Jamaica is complex, yet very efficient. In Jamaica, individuals are prone to pay Income Tax at the rate of 25% on their chargeable income not more than 6 million Jamaican dollars, whereas chargeable income in excess of Jamaican dollars 6 million per annum, is subjected to an income tax rate of 30%.

In terms of categories can we have five types of taxes:

1. Statutory Taxes

Under the statutory taxes we have,

  1. Heart Fund Contribution: Heart fund contribution is paid by the private sector employers, at the rate of 3% of the total emoluments of employees
  2. National Insurance Company (NIS): National Insurance is a kind of financial protection offered to the worker’s family from loss of income.
  3. Income Tax: Income Tax depends on the income of the individual. 
  4. Education Tax: All employed, self-employed people are liable to pay education tax.

2. Indirect Taxes

Types of taxes under this,

  1. General Consumption Tax (GCT): General consumption tax (GCT) is generally levied at the rate of 16.5% on the supply of goods and services, on the import of these goods and services, or by any person for consumption.
  2. Value-Added Tax(VAT): Applied as value added to goods and services, at each stage of production and distribution chain. It is imposed at a rate of 33.3%.
  3. Special Consumption Tax: This is provided on specific articles like petroleum, tobacco products, and so on.

3. Property Taxes

These are land taxes imposed on a person upon possession of the land. Revenue collected from property taxes is used in property related services like, collection of garbage, Street lighting, expansion of community infrastructure, and so on. It is paid by all the property owners, except the exempted organizations like church, etc. The tax calculated depends on factors like the size of the topography, soil classification, development potential, and land use.

4. License and Fees

This includes the registration fee and the examination fee for getting the licenses of motor vehicles, before it can be used on the road, to get the Firearm license for the protection of life and property or for getting a driver’s license. Hotel license also comes under this category, which is used for people having their own Hotel, Cottage, Villa for accomodating people at the cost of staying and taking meals therein.

5. Betting, Gaming, and Lottery Taxes

These kinds of taxes are fees, duties, taxes levied on games of chance, paid by bookmarkers, racing promoters, lottery companies, and so on. A bookmarker is a person who has a business of receiving or negotiating bits at occasional or on a daily basis. A racing promoter is a person who promotes horse racing and people levy bets on them.

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