Question 1

What is the standard Jamaican withholding tax rate for non-residents?

Accepted Answer

Under Section 40 of the Jamaican Income Tax Act, payments made to non-residents (including dividends, interest, royalties, and management or technical service fees) are subject to a statutory withholding tax of 25%, unless reduced by an applicable Double Taxation Treaty.

Question 2

What is the US-Jamaica Double Taxation Treaty withholding rate?

Accepted Answer

Under the US-Jamaica treaty: portfolio dividends are subject to 15% (or 10% for qualifying corporate parent shareholdings of at least 10%); interest is capped at 12.5%; royalties are capped at 10%; and management fees are exempt unless attributable to a permanent establishment.

Question 3

What is the UK-Jamaica treaty withholding rate?

Accepted Answer

Under the UK-Jamaica bilateral agreement: dividends are capped at 15% (or 22.5% for certain trust distributions); interest is subject to 12.5%; and royalties are capped at 10%.

Question 4

What treaty rates apply under the CARICOM Double Tax Agreement?

Accepted Answer

Under the CARICOM treaty, income is generally taxed only in the member state where it arises or is earned, and dividends paid by a company resident in one member state to a resident of another are zero-rated for withholding tax.

Question 5

How does a non-resident obtain treaty relief in Jamaica?

Accepted Answer

The payer must obtain a Certificate of Tax Residence from the non-resident's home tax authority and apply to Tax Administration Jamaica (TAJ) for a treaty relief authorization certificate before applying the reduced rate.

Jamaica Non-Resident Withholding Tax Calculator

Payment Amount & Treaty Partner

Statutory Withholding Tax & Treaty Matrix