On 12 March 2024, the Jamaican government presented the 2024-2025 budget without new tax measures. However, the 2024-2025 budget did have a proposal for the implementation of the Qualified Domestic Minimum Top-Up Tax (QDMTT) under the global minimum tax regulations in accordance with the Council Directive (EU) 2022/2523 of 14 December 2022, also known as Pillar Two.
While the domestic legislation is still pending, these changes are expected to be implemented in the financial year 2024/2025. These provisions will impact Jamaican taxpayers with a tax rate below 15%, including entities in special economic zones subject to a 12.5% corporate income tax rate.
The main tax proposals outlined in the 2024-2025 budget are as follows:
- Raising the annual threshold for personal income tax from JMD 1,500,096 to JMD 1,700,088;
- Raising the minimum value for imported goods and the duty-free threshold for passengers;
- Removing the general consumption tax (GCT) on imported raw food items;
- Increasing exemptions for pensions and age relief from JMD 80,000 to JMD 250,040;
- Raising the de minimis value for imported goods from USD 50 to USD 100;
- Introducing a tax credit of JMD 20,000 for individuals earning less than JMD 3,000,000, which is only available if they complete their tax filings and returns for 2023 by 31 March 2024;
- Eliminating the consumption tax on armored cash courier vehicles;
- Raising the maximum participating voting share capital to J$750 million in the Junior Stock Exchange;
- Introducing a 25% tax rate for companies in the trust and corporate services sectors;
- Implementing a 25% corporate income tax rate for independent power producers generating 75% or more from renewable sources.
