The government will apply a single tax rate of 15 per cent to dividends for resident and non-resident companies and individuals, which is expected to make Jamaica more attractive to both local and foreign investors.
Minister of Finance and the Public Service Fayval Williams, made the disclosure when she opened the 2025/26 Budget Debate in the House of Representatives on March 11.
Williams said Jamaica has had a difference in the tax rate on dividends for resident companies and individuals, which is 15 per cent, and for non-resident companies and non-resident individuals, it is 33 1/3 per cent and 25 per cent, respectively.
“When you hear non-resident companies and non-resident individuals, don’t immediately think foreign companies or foreign individuals. These may also be companies registered abroad that are owned by Jamaicans. There are also Jamaican individuals who live abroad in countries that have lower dividend rates that receive dividends from Jamaican companies,” she explained.
The minister said that reducing tax on dividends and establishing one rate for resident and non-resident companies and individuals of 15 per cent will encourage investments in Jamaica.
“This benefit is one way to say to those Jamaicans who have companies abroad in jurisdictions with lower dividend tax rates than what currently prevails, we are saying to them, we are lowering the rate for you. Bring your capital back to Jamaica,” the minister said.
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