Kingston, July 7, 2023 - Beyond Borders: Implications of International Tax Reform on Business in Jamaica
In 2021, state-members of the Organization for Economic Co-operation and Development (OECD) arrived at an agreement which will lead to major reform of the international tax system. The OECD/G20 Inclusive Framework countries, tasked with dealing with tax challenges and addressing international avoidance by multinational companies, agreed to implement a “two pillar solution”.
The changes agreed by the OECD are complex and are not yet operational, in Jamaica. However, once implemented, they will have profound implications for national tax revenue, foreign direct investment, corporate tax rates, tax incentives offered by the Government, and tax policies in Jamaica. Invariably, these changes will be significant for Multi-National Corporations (MNC’s) that operate in Jamaica, and especially those companies that sell through digital channels to minimize the need for a heavy local presence. The reform is expected, for example, to lead to “top up tax mechanisms” that will increase the tax burden on MNC’s, if certain criteria are met.
In addition to the two-pillar solution, Jamaica also has obligations under the OECD’s Forum on Harmful Tax Practices that has caused the Special Economic Zone (SEZ) regime to be placed under a microscope. As a result, the SEZ Act was amended in 2022 to formally introduce new Economic Substance requirements, and restrictions on intellectual property activities by SEZ companies in Jamaica. The practical implications of these amendments are ongoing, and companies are required to familiarize themselves with these changes to successfully navigate the SEZ arena.
DunnCox has assembled a distinguished panel of professionals from various organizations to accompany their Attorneys, including the Tax Administration of Jamaica, the Special Economic Zones Authority, and Ernst & Young Services Limited.
The panelists will share their expertise and insights on the practical implications of the impending tax reform, with a focus on demystifying the changes to the international tax regime, the process for implementation, and the consequences for multinational or SEZ businesses in Jamaica.
Dr. The Honourable Nigel Clarke, D.Phil., Minister of Finance and Public Service will provide the opening remarks at the event.
For more information about this event, or to register, please go to www.dunncox.com.
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DunnCox is a full-service law firm headquartered in Jamaica, with over 80-years’ experience offering clients solutions to the most challenging legal issues in virtually every area of commercial and corporate law, commercial litigation, property law and estate planning. DunnCox acts for a sizeable pool of local and international clients in a variety of sectors including financial services, hospitality and leisure, mining and raw materials, manufacturing, energy, real estate and construction, information technology, retail, and aviation. DunnCox also represents multinational corporations and public authorities, on matters concerning regulatory compliance, tax law, and legal due-diligence.