As part of the Global Logistics Hub Initiative (GLHI), the Government of Jamaica has implemented the Special Economic Zones (SEZs), a geographical zone designated for economic activity offering simple and efficient business regulations and procedures to investors. The SEZ zones are essentially an upgrading of the rigid free zone regime, the new SEZ will adopt international standards and growth trends for zone development. The Benefits of the Special Economic Zones include: Competitive Tax and Incentives regime for the SEZ.
- Exemption from dividend tax for shareholders resident abroad.
- Low Corporate Income Tax rate of 12.5% on profits (i.e. half of that applicable to ordinary unregulated companies). This rate can be effectively reduced to approximately 7.5% by the following tax credits:
- a. Employment Tax Credits (“ETC”) This is capped at 30% of the entity’s CIT liability on trading income;
- b. Promotional tax credits in respect of Research & Development costs and training costs. This tax credit is capped at 10% of the taxable income from operations in the SEZ.
- Tax free rental income.
- As a further income tax relief, the developer and occupant are exempt from tax on the income from the rental of property in the SEZ, unless the tenant is a connected party.
- Goods imported into the SEZ by developers or occupants are exempt from customs duty (CET), stamp duty and GCT.
- Local purchases of goods and services by developers or occupants, from local suppliers, located outside of the SEZ, are zero-rated. That is, no GCT is to be paid on these purchases.
Accessing Special Economic Zone Status
All interested parties are invited to complete the registration form which may be requested via email at firstname.lastname@example.org or you may schedule an appointment with the JSEZA and a representative will be assigned to assist you with completing the documentation.. Visit the Jamaica Special Economic Zone website at https://www.jseza.com/ for information.