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An aerial view of New Kingston, Jamaica. (Photo: wikicommons)

Jamaica and Japan execute tax deal

An aerial view of New Kingston, Jamaica. (Photo: wikicommons)

Japan received notification from Jamaica confirming that its internal procedures necessary for entry into force of the Convention between Japan and Jamaica for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance on August 17.

An aerial view of Kingston, Jamaica.

The process which was started on December 12, 2019 and has now been completed. The convention will enter into force on September 16, 2020 (the thirtieth day after the date of receipt of the latter notification).

In Japan, the agreement will cover taxes levied on the basis of a taxable year, for taxes of any taxable years beginning on or after January 1, 2021; and also with respect to taxes levied not on the basis of a taxable year, for taxes levied on or after January 1, 2021.

In Jamaica, the agreement will cover taxes withheld at source, for income paid or credited on or after January 1, 2021; and  other taxes, for any taxable year beginning on or after January 1, 2021.

Provisions concerning the exchange of information and the assistance in the collection of taxes will have effect from September 16, 2020 without regard to the date on which the taxes are levied or the taxable year to which the taxes relate.

The release on the agreement says it is expected that, while eliminating double taxation and preventing international tax evasion and tax avoidance, the convention promotes further mutual investments and economic exchanges between the two countries.