Enhancing India CARIFORUM Economic Relations and Prospects for Cooperation

productive enterprise. The economy is driven by FDI and foreign exchange earned through exports and remittances. Targeted Sectors for Investment: ICT/Business Process Outsourcing; Tourism; Manufacturing; Energy; Agro-processing/Agri-business; Creative Industries; Mining.

Incentives:

• Jamaica Export Free Zone Act: Companies operating in designated Free Zones receive exemption from the following: 1. Income tax on profits in perpetuity; 2. Import duty on licensing fee in perpetuity 3. Import duty exemption on capital products 4. Companies operating in a Free Zone must export a minimum of 85% of its services. • Omnibus Fiscal Incentives: This provides three broad incentives covered under legislation. The incentives include 1. An Employment Tax Credit 2. Capital Allowance and 3. Productive Input Relief (PIR). Finally, the country possesses the only Special Economic Zone (SEZ) in the English-speaking Caribbean. Within the SEZ, investors are afforded 1. Duty free importation of goods for both the Developer and Occupant 2. 0% General Consumption Tax (GCT/Value Added Tax) on goods and services purchased locally or overseas for use within the SEZ for both the Developer and Occupant 3. Corporate Income Tax rate of 0% on rental income for the Developer 4. Headline tax rate of 12.5% with an effective tax rate of 7.75% with the application of promotional and employment tax credits for the Occupant 5. Asset Tax Relief for both the Developer and Occupant and 6. Stamp Duty Relief for both the Developer and Occupant. All sectors may benefit from the SEZ regime except the following: extractive industries, telecommunications, financial services, catering, retail trade, health services (excluding R&D), construction services, public utilities, real estate and property management and tourism services.

For more information contact: Jamaica Promotions Corporation (JAMPRO)

Email: info@jamprocorp.com

Investment Framework in Select CARIFORUM Countries

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