← Guides / Jamaica

Jamaica Investment Income Tax Guide

Investment income in Jamaica is subject to withholding tax (WHT) at source. Dividends and interest paid to residents are taxed at 15%, while non-residents face a 25% rate (subject to treaty relief). There is no capital gains tax on the sale of shares, securities, or financial instruments for individuals.

For related guidance, see our Capital Gains Guide →, Cross-Border Guide →, and Crypto Tax Guide →.

Dividend Taxation

  • Residents: Dividends paid by a Jamaican company to resident individuals or companies are subject to WHT at 15%.
  • Non-residents: Dividends paid to non-residents are subject to WHT at 25%, unless reduced under a Double Taxation Treaty (DTT).
  • Dividends received from Jamaican companies by other Jamaican companies may be exempt from tax under certain conditions.
  • No further tax is payable by the individual recipient on dividend income (final withholding tax).

Interest Taxation

  • Residents: Interest income is subject to WHT at 15% (final withholding tax).
  • Non-residents: Interest paid to non-residents is subject to WHT at 25%, subject to DTT reductions.
  • Interest earned on government securities (e.g., Treasury bills, bonds) is generally subject to the same WHT rules.
  • Interest paid by banks and financial institutions to residents is normally withheld at source.

Royalties

  • Residents: Royalties (e.g., for intellectual property, patents, trademarks) are subject to WHT at 15%.
  • Non-residents: Royalties paid to non-residents are subject to WHT at 25%, reduced under DTTs.

Capital Gains on Investments

  • Jamaica does not levy a capital gains tax on the sale of shares, stocks, bonds, or other securities by individuals.
  • Gains from trading in securities by financial institutions are treated as ordinary income.
  • No CGT applies to the disposal of personal investments (mutual funds, ETFs, unit trusts).

Foreign Investment Income

  • Jamaican residents are taxed on their worldwide income, including foreign dividends, interest, and royalties.
  • Foreign tax credits are available for taxes paid abroad on foreign investment income, subject to DTT provisions.
  • Foreign investment income must be declared on the annual tax return.

Key Takeaways

  • Dividends and interest: 15% WHT for residents, 25% for non-residents.
  • No CGT on shares, securities, or personal investments for individuals.
  • Royalties: 15% WHT for residents, 25% for non-residents.
  • DTTs can reduce WHT rates for non-residents.
  • Worldwide investment income is taxable for residents.