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Jamaica
We have a team of experienced professionals dedicated to supporting all your business requirements—ensuring smooth operations and full regulatory compliance. This strong foundation enables you to confidently establish and grow your business in Jamaica with efficiency and assurance.
WHY JAMAICA?
Jamaica is an island country in the Caribbean, covering 10,990 square kilometres (4,240 sq mi). It is a popular tourism and resort destination. It is the third-largest island in the Greater Antilles and the Caribbean, after Cuba and the island of Hispaniola. Jamaica lies about 145 km (78 nmi) south of Cuba, 191 km (103 nmi) west of Hispaniola (the island containing Haiti and the Dominican Republic), and 215 km (116 nmi) southeast of the Cayman Islands (a British Overseas Territory).
With 2.8 million people, Jamaica is the third most populous Anglophone country in the Americas and the fourth most populous country in the Caribbean. Kingston is the country’s capital and largest city. Jamaica is a parliamentary constitutional monarchy, with power vested in the bicameral Parliament of Jamaica, consisting of an appointed Senate and a directly elected House of Representatives. Jamaica is an upper-middle-income country with an economy heavily dependent on tourism. It has an average of 4.3 million tourists a year. The country has a global influence that belies its small size; it was the birthplace of the Rastafari religion and reggae music (and such associated genres as dub, ska, and dancehall); and it is internationally prominent in sports, including cricket, sprinting, and athletics. Jamaica has sometimes been considered the world’s least populous cultural superpower.
Major sectors of the Jamaican economy include agriculture, mining, manufacturing, tourism, petroleum refining, financial and insurance services. Tourism and mining are the leading earners of foreign exchange. Half the Jamaican economy relies on services, with half of its income coming from services such as tourism. An estimated 4.3 million foreign tourists visit Jamaica every year. Doing business in Jamaica offers access to a strategic Caribbean hub with a stable democracy, top-ranked logistics, and a strong, growing economy. Key sectors include tourism, BPO/outsourcing, logistics, and agriculture. The country boasts strong trade agreements, though investors should navigate high energy costs and bureaucracy.
ADVANTAGES
Strategic Location & Logistics:
Positioned in the Caribbean, Jamaica is within a 4-hour flight radius of 500 million people, providing a “near-shore” advantage for U.S.-focused businesses. It features major international airports and the #1 transshipment port in the region.
Attractive Tax & Investment Incentives:
The Jamaica Special Economic Zone Authority (JSEZA) facilitates incentives, including a 12.5% corporate income tax rate, customs duty relief, and GCT relief on goods/services used within the zone.
Skilled & English-Speaking Workforce:
Jamaica has a large, skilled, and English-speaking talent pool, particularly suited for BPO, IT, and financial services.
Strong Infrastructure & Connectivity:
The country boasts modern, reliable telecommunications, with multiple submarine fiber routes (e.g., ARCOS-1) and comprehensive 3G/4G coverage.
Stable Business Environment:
Jamaica is a stable, democratic nation, often ranked as the top country for doing business in the Caribbean, with a highly competitive and growing stock market.
Foreign Investment Friendly:
There are no restrictions on foreign ownership or control of businesses, and no formal screening mechanisms for foreign investments.
Robust BPO Sector:
Recognized as a top BPO destination, it hosts many global firms, offering specialized support and infrastructure for outsourcing.
TAX REGIME
Personal Income Tax (PIT):
A tax-free threshold applies to employment income, with rates of 25% for income up to JMD 6 million and 30% for income exceeding JMD 6 million annually.
Corporate Income Tax (CIT):
Generally 33⅓%, applicable to resident companies on worldwide income. Regulated companies may face specific rates.
General Consumption Tax (GCT):
A value-added tax with a standard rate of 15%.
Payroll Taxes (Statutory Deductions):
- National Housing Trust (NHT): 2% for employees, 3% for employers.
- Education Tax: 2.25% for employees, 3.5% for employers.
- HEART Trust: 3% for employers.
- NIS (National Insurance Scheme): Contributions are shared between employer and employee.
Withholding Tax (WHT):
Applies to dividends, interest, and royalties, with rates varying depending on whether the recipient is a resident or non-resident, often reduced by double taxation treaties.
Tax Year:
The fiscal year runs from April 1 to March 31, with income tax returns for individuals and companies due by March 15 of the following year.
JAMAICA COMPANIES
Sole Trader / Sole Proprietorship:
A business owned by one individual, offering full control but unlimited personal liability.
Partnership:
Formed by two or more people to operate a business jointly.
Limited Liability Company (LLC):
The most popular corporate structure, offering separate legal personality and limited liability for shareholders.
Private Limited Company (Limited by Shares):
Most common, can have one or more shareholders.
Company Limited by Guarantee:
Usually non-profit organizations.
Unlimited Company:
Rare, where members have unlimited liability.
Overseas Company / Branch Office:
A foreign company registered to do business in Jamaica.
Other Entities:
Co-operatives, Industrial and Provident Societies, and Building Societies.
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