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Manufacturing Incentive

Doing business and investing in Jamaica, is increasingly simple; and it provides a win-win for both the investor and the country. The same can be said for accessing your investment incentives.

Consistent with the Government’s commitment to creating an enabling business environment, was the reform of the country’s fiscal incentive schemes. This led to the enactment of the Fiscal Incentives Act, or the Omnibus Incentive Regime, which came into effect on January 1, 2014.

This regime is governed by four (4) main pieces of legislation as outlined below.

Under the Customs Tariff (Revision) Resolution, a key benefit has been introduced, which is the Productive Inputs Relief (PIR) scheme. Through the PIR system, the Government of Jamaica (GOJ) has targeted specific sectors – Agriculture, Manufacturing, Tourism, Healthcare and Creative Industries – in which to promote and stimulate growth in the economy. The PIR provides for the duty-free importation of specific items where they are for productive use. This relief is intended to result in the expansion of productive activities in these areas.

Companies operating in Jamaica can therefore benefit from a range of incentives, which is applied at two main stages: i) import duty relief - when they import items and ii) income tax relief - when they file their taxes.

Includes relief on:

  • Customs Import Duties, normally charged when importing goods into the country
  • Additional Stamp Duties, usually applied at the port on certain products
  • Corporate Income Tax generally levied on the profit income of businesses.

In addition to the Omnibus Incentive Regime, there are several other incentives, which are available to businesses and investors. These include:

  1. The Urban Renewal (Tax Relief) Act, 1995;
  2. The Junior Market Income Tax (Amendment) Act, 2016 No. 21;
  3. The Bauxite and Alumina Industries (Encouragement) Act, 1950;
  4. The Income Tax (Amendment) Act, 2012 (Group Headquarters) Encouragement Act; and
  5. The Special Economic Zones Act, 2016.

To learn more about accessing your incentives, just click on one of the “Sectors” below to see the step-by-step guidelines.

How to Access Manufacturing Incentives

The Process
Process Quick Tips
  1. Items that are imported and landed in Jamaica prior to the final “Status” designation being awarded to your company, will not be covered by the manufacturing fiscal incentives, as the benefits cannot be applied retroactively. Where goods are imported prior to the grant of the manufacturer/producer status, you will be required to pay all the applicable border taxes.
  2. The manufacturing status is granted for a period no longer than 3 years. Renewal of this status requires that the companies submit a valid Tax Compliance Certificate (TCC). Site visits & updated Data Capture Forms may also be required.
  3. Written requests for the renewal of the status are submitted to MIIC, which then makes a referral to the JCA for its final determination. A final decision is made thereafter.
  4. New companies may be granted provisional manufacturing status for a period of no longer than 6 months where at the time of the initial assessment the actual manufacturing processing would not have commenced. At the end of the provisional period, a verification visit is undertaken to determine whether or not the productive operations have commenced.
  5. Companies should note that as indicated above, the PIR only covers the import duties and the Additional Stamp Duty. Registered manufacturers also benefit from a 50% discount on the Customs Administration Fee (CAF) and a deferment on the GCT.

  6. - In order to benefit from the GCT deferment facility, the manufacturer must apply to Tax Administration Jamaica (TAJ). This application should be submitted to the TAJ subsequent to the company’s qualification for Productive Inputs Relief. It must be highlighted that the GCT deferred on imported inputs is not an exemption, and, therefore, must be paid within the time specified by the GCT Act.

    - The 50% discount on CAF is currently applicable to certain inputs only. The inputs are specific to raw materials, intermediate goods, and packaging materials. This is indicative that full CAF is payable on the consumables and machinery and equipment (including parts thereof).

    - Duty-free Importation of Equipment and Machinery, as well as revised tariff rates ranging from 0% to no higher than 20% (with some exceptions).

  7. Some items are exempted from the PIR, i.e. goods listed in Part I of the Fourth Schedule of the Customs Tariff (Revision) (Amendment) Resolution 2013 and goods that the Commissioner of Customs is satisfied can be obtained in adequate supplies from a local manufacturer or from within CARICOM. This list of ineligible goods is not exhaustive and a complete listing can be found in the Customs Tariff (Revision) (Amendment) Resolution 2013.

  8. It is recommended that you contact a licensed Customs Broker to assist with information for items being imported for production or manufacturing.

    For more information, you may also contact MICAF at industry@micaf.gov.jm or 1 (876) 968-8595.