Tax Administration Jamaica (TAJ) recently published the final version of a Transfer Pricing Agreement (TPA) Practice Note. The purpose of the Practice Note is to provide taxpayers and tax officials with guidance on transfer pricing agreements in accordance with the transfer pricing rules that were enacted in November 2015.
Any taxpayer subject to the transfer pricing rules in section 17 of the Income Tax Act of Jamaica may request a transfer pricing agreement. TAJ’s Transfer Pricing Agreement Programme, also known in some tax jurisdictions as an Advance Pricing Agreement (APA) Programme, is designed to provide a cooperative approach for resolving transfer pricing issues on a prospective basis. It clearly sets out the pre and post- application stages of the programme.
