The corporate income tax rate is 25%.
Higher rates apply to regulated financial institutions.
A resident corporation is taxable on its worldwide income. Non-resident companies are subject to tax on Jamaican-sourced income.
Withholding tax is imposed on certain sources of income, such as interest, dividends, royalties, and fees, at a rate of 33⅓% for non-resident corporations. Lower rates of withholding are possible, provided that the recipient is resident in a country that has concluded a double taxation treaty with Jamaica.
Transfer pricing provisions are contained in the Income Tax Act (ITA), Section 17 and The Income Tax (Amendment) Act 2015-No 12 of 2015.
The legislation has been drafted in accordance with the OECD Transfer Pricing Guidelines. As such, the TPG is the main resource for interpreting transfer pricing rules.