Contributions to the Social Security system are tax-deductible.
Aside from Pay-As-You-Earn (PAYE) Income Tax for employees, employers must deduct and remit the following contributions on their employees’ behalf by the 14th day of the month following the month of deduction, unless an exception applies.
Contributions to the National Insurance Scheme are tax deductible (NIS).
Government-sponsored social security insurance is necessary coverage for both employees and self-employed individuals in the United Kingdom. According to this system, both employees and employers make contributions at a rate of 3 percent (each) of their total annual compensation, up to a maximum of JMD 1.5 million in total contributions. In order to be eligible for a contribution, self-employed individuals must contribute 6 percent of their yearly earnings, up to a maximum of JMD 1.5 million. The income threshold for both employed and self-employed individuals will be raised to JMD 3 million per year on April 1, 2021, and subsequently to JMD 5 million per year on April 1, 2022, with the first increase occurring on April 1, 2021. Contributions to the National Institutes of Health are deductible from your taxable income.
The National Housing Trust receives contributions (NHT).
Employers are required to contribute 3 percent of taxable emoluments obtained as a consequence of employment in Jamaica, while employees are required to contribute 2 percent of taxable emoluments received as a result of employment in Jamaica. Individuals who are self-employed are also expected to make a 2 percent contribution from their earnings. Contributions from employees are not tax deductible, although donations made by employers generally are. Compared to employer contributions, which are not refunded after seven years, employee contributions are refunded after seven years. Expat employees who leave the island permanently are able to get a refund of their contributions, providing that they file a claim with the government in the appropriate manner.
The Education Tax
The Education Tax is paid by both employers and employees after deducting NIS contributions as well as contributions to a superannuation system that has been approved by the Ministry of Education. Employers are responsible for 3.5 percent, and employees are responsible for 2.25 percent. Employers can deduct only their payments for tax purposes, and neither the employer nor the employee are eligible for a reimbursement of their contributions.
Contributions from the sectors of Human Resources and Resource Training (HEART)
A monthly contribution of 3 percent of each employee’s income and salaries is required of employers to be made to the Heartland Employees’ Retirement System (HEART). It is possible to deduct contributions from your federal and state income taxes.
Consumption tax applied on a broad scale (GCT).
As a value-added tax, the Goods and Services Tax (GCT) has a standard rate of 15 percent at the time of writing. Certain commodities and services are subject to GCT rates that are either higher or lower than those applicable to other goods and services.
It is a tax on products and services that is levied on consumers (SCT).
On the importation or manufacture of “designated items,” SCT is levied at different rates depending on the situation (certain petroleum products, ethanol, alcoholic drinks, tobacco, and motor vehicles).
Real estate taxes are levied.
Every piece of land in Jamaica is appraised on the basis of its “site value” or “unimproved value” for the purpose of determining its tax liability (as reflected on the 2013 Property Valuation Roll). Depending on the amount of revenue collected, property tax is charged on the basis of different valuation categories, with rates ranging from 0.50 percent to 0.90 percent.
Transfer tax is a tax charged on the transfer of ownership of real estate or other types of property.
Land, buildings, securities, and shares are all subject to a 2 percent transfer tax, which is levied on the amount paid (or the market value in some cases) for the transfer of the property at the time of the transfer (provided that a refund is available where the transfer tax charged exceeds 37.5 percent of the capital gain made). In the case of equities listed on the Jamaica Stock Exchange (JSE), transfer tax does not apply if the stocks are transferred on the JSE (including the Junior Stock Exchange).
Additionally, a transfer tax is charged on the estate of any individual who is domiciled in Jamaica at the time of death and whose assets are passed to that individual after death.
No inheritance or capital gains taxes are levied in Jamaica, and the country does not have a capital gains tax structure in place.
Stamp duty is a type of tax levied on both goods and services.
In the United States, taxes on legal instruments are levied at varying rates according on the type of legal instrument. When listed equities are transferred from one person to another on the Johannesburg Stock Exchange, no stamp duty is due.