Healthcare Incentive - JAMPRO
Under the Omnibus Incentives Regime, the Customs Tariff (Revision) Resolution is geared towards the productive sector and provides for the duty-free importation of capital equipment and raw materials. The key benefit is the introduction of the Productive Inputs Relief (PIR) scheme. Special categories have been created for companies in the manufacturing, agriculture, tourism (attractions and accommodations) and health sectors, along with companies within the creative industries.
No application is necessary for you to access the benefits under the Omnibus Incentives framework. A healthcare entity seeking to benefit from the Productive Inputs Relief (PIR) system must first register with the respective regulating Ministry for status as a bona fide ‘Healthcare Facility’. The Ministry of Health and Wellness (MOHW) is the regulating Ministry for the Healthcare sector.
The MOHW has as a part of its mandate “To ensure the provision of quality health services”. Together with its Regional Health Authorities (RHAs) and other related organizations including the Public Health Departments of the Municipal Corporations, they make up the public health system and are responsible for health care delivery across the island; and the monitoring of private healthcare facilities within the country. For more information about accessing this incentive continue to the next step of this business process guideline.
How to access Healthcare Incentives
The Process
Process Quick Tips
- Items that are imported and landed in Jamaica prior to the final Healthcare owner/operator designation being awarded to companies will not be covered by the healthcare fiscal incentives, as the benefits cannot be applied retroactively. Where goods are imported prior to the grant of the healthcare facility status, they will be required to pay all applicable the border taxes.
- Companies should note that the PIR only covers the import duties and the Additional Stamp Duty. Companies from the healthcare sector are required to pay all other port charges and fees. Key among those are the:
- Corporate Income Tax Liability Reduction, under the The Fiscal Incentives Act (FIA) - companies can access these benefits:
- Employment Tax Credit (ETC) provides a tax credit amounting to a maximum of 30% of the accumulated employer’s portion of the statutory deductions for both new and existing employees. This can effectively reduce the Corporate Income Tax (CIT) rate to as low as 17.5%.
- Capital Allowance reduces the proportion of company’s income against which the corporate income tax will be charged. Provides for a 20% initial capital allowance for income tax purposes, as well as, annual allowances varying from 4% - 12.5% per annum, for expenditure related to construction, alteration and renovation of buildings or structures to be used for healthcare purposes and depending on primary materials used in construction of facility.
- Reduced GCT rate of 10% will be paid by healthcare facilities?? that operate under the Omnibus Incentives framework.
- Duty-free Importation of Equipment and Machinery, as well as revised tariff rates ranging from 0% to no higher than 20% (with some exceptions)
- Customs Administration Fee (CAF): is a schedule of applicable fees based on the item being imported
- Value Added Tax (General Consumption Tax (GCT)): the tax varies between two rates, i.e. 16.5% or 21.5%
- Standards Compliance Fee (SCF): 0.3% of the CIF value of the imported item
- Environmental Levy: 0.5% of the CIF value of the imported item
- Special Consumption Tax (SCT): Applied to few items including products and some petroleum products
- Stamp Duty: two rates are applied, i.e. J$5.00 and J$100.00 depending of the CIF value of the imported item.
- Corporate Income Tax Liability Reduction, under the The Fiscal Incentives Act (FIA) - companies can access these benefits:
- Some items are exempted from the PIR, i.e. goods listed in Part I of the Fourth 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. Parts I & II, Lists of Commodities Ineligible for Conditional Duty Exemptions, of the Customs Tariff (Revision) (Amendment) Resolution 2013, provides an outline of items for which duty-exemption will not be granted upon importation.
- It is recommended that you contact a licensed Customs Broker to assist with information for items being imported for use in the Healthcare industry.
For more information, contact MOH at info@moh.gov.jm or 1 (876) 920-4926/30.
