Tax In Jamaica
One of the most consistently challenging aspects of contracting in Jamaica is complying with the country’s tax system. As well as paying tax in Jamaica, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge.
If you’re working in Jamaica under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Jamaica for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Jamaica, but contractors may not be offered this service because of their short stay with each employer.
Anybody who can’t pay their tax in Jamaica through PAYE is left with the prospect of doing everything themselves.
Do you know much about Jamaican Tax Law? Does Jamaica have a tax treaty with your home country? You will need to find out or find someone who can help! Income tax in Jamaica can range from 25 to 30 percent, and you need to be sure you are placed in the correct tax brackets.
If you are a contractor and want a calculation on your tax and net retention in Jamaica, we can supply it to you free of charge.
Contractors in Jamaica are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A Jamaican umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).
The companies are experts in Jamaican taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Jamaican tax office or tax department directly including processing your tax refund if you are eligible.
We work with numerous umbrella companies in Jamaica, many of whom are experts in tax and immigration laws. If you have any questions about tax in Jamaica, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Jamaican work permit.
Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in Jamaica but without the overhead of directly dealing with the Jamaican tax authorities. Get in touch with us today for some reliable advice on tax in Jamaica!
The process for filing taxes in Jamaica involves:
Step 1: Ensure that you have a valid TRN. Create a login for the Jamaican tax portal here(link is external).
Step 2: Register to use the online tax system by filing out an “Electronic Filing Account Registration Form (EF02)”. You can download it online(link is external) or complete it at your local tax office. Submit the form alone with your TFN to the local tax office. Upon satisfactory submission of the documents, a confirmation email will be sent to you.
Step 3: Log into the tax portal(link is external).
Step 4: Select the period for which you want to file the return, then select “file return”.
- You will be required to have the P24 form (Certificates of Pay and Tax Deducted).
Step 5: Select the form that you will file. Common forms include:
- Form IT05: Return of income and tax payable – individuals (PAYE). This form is used by any persons taxed under the PAYE scheme whose source of income is from salaries, wages, pensions, dividends, interest and investment interest.
- Form IT01: Return of income and tax payable – individuals (self-employed). You will also be required to file this return if you are receiving income from other sources.
Step 6: Enter relevant data into the form and upload any attachments as required. Complete the declaration and submit the return.
Step 7: If you have any outstanding taxes due, select “Make a payment”. Enter the payment information and contact information.
- A valid credit card will be required.
Step 8: Select “Enter payment now” to add your credit card details. Print/write the reference number for your records.
You become a tax resident in Jamaica if you stay there for 6 months or longer. Other factors that may be considered include whether you (or your spouse) have a place of abode available for use in Jamaica, and if you habitually visit Jamaica for substantial periods. The tax authorities regard periods totalling 3 months as substantial and visits as habitual if you are present in Jamaica for approximately 3 months annually for 4 consecutive years.
Individuals who are resident and domiciled in Jamaica are taxed on their global income.
Individuals who are resident but not domiciled in Jamaica are taxed on their Jamaican-source income and on foreign-source income that is remitted to Jamaica.
Non-residents are taxed only on Jamaican-source income and one remittances of foreign income to Jamaica.