Economic development through culturally-inspired creativity and innovation.

Caribbean Business Day

Bremen, Germany

Investing In Jamaica

JAMAICAN FDI TRENDS & INDICES

› World Investment Report (WIR) 2008 ranks Jamaica among 141 countries :

› 21st as an Inward Investment Location

The FDi Intelligence Report 2009 ranks Jamaica among 31 Caribbean and Latin American countries:

• 2nd for best infrastructure. Jamaica scored the highest for the number of ports compared with the rest of the region.

• 8th for FDI Strategy• 10th for Business Friendliness• 7th for Cost Effectiveness

Infrastructural Developments

Air Routes Map

Donald Sangster Airport Improvements

NMIA Airport Improvement Programme

Port Expansions Underway

US$ 20 mn Expansion planned

Expansion Planned

Expansion Complete

Port (Bustamante/Gordon Cay)-Further Expansion planned

Port of Kingston Logistics Centre

› Capacity of 2.0› Million TEU’s

› Throughput 1.3› Million TEU’s

› 19 Gantry Cranes (end-2007)

› 50 Straddle Carriers

› Warehouses - 10,200 square meters (110,000 sq.ft.)

Montego Bay Cruise Shipping Port

Port Antonio – West Harbour

Opened July 2006(Causeway)

Opened section (12/15/2004) (KBP)

Opened Section(22/09/2003(OHB)

Phase II

Phase 1B

Phase 1a

H2K Project: Stimulus to Heavy Industry development and South Coast Tourism

Highway 2000

North Coast Highway

INCENTIVES AVAILABLE IN JAMAICA

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SECTOR INCENTIVES REQUIREMENTS CONCESSIONS Export Industry Encouragement Act

Full Exporter - Designed to encourage export manufacturing to hard currency (non-CARICOM markets). All production must be exported. Partial Exporter – Producers must export a threshold of 5% of their production to non-CARICOM markets.

Concessions on income tax for ten years (but is to be phased out before 2003 according to the WTO subsidies and countervailing duties. Concessions on income tax and exemption from import duties on raw materials and machinery. For new exporters, the rebate is calculated based on the percentage of export sales to total sales, while for the already existing exporter, the rebate is calculated based on incremental export sales over a base year.

Jamaica Export Free Zone Act

The company must be incorporated under the Companies Act. A company can operate outside the Free Zone complex under the single entity Free Zone status. To benefit from this status a company must (i) be registered according to the provisions of the Companies Act (ii) export at least 85% of its production

Concessions on corporate income taxes, duties and taxes on capital imports for 10 years. (Benefits may change from January 2007 in order to maintain WTO compliance as per WTO agreement on subsidies and countervailing duties.

MANUFACTURING

Bauxite & Alumina Industries Encouragement Act

Must be engaged in the mining of Bauxite or the production of Alumina in Jamaica.

Import duty concession on capital items, lubricating oils, grease and other chemicals.

AGRICULTURE

Approved Farmer Status

Farmer must grow certain crops but most agricultural products qualify. Companies involved in hatching eggs also qualify for relief.

Income tax and duty concessions for up to ten years and is renewable.

FILM

Motion Picture Encouragement Act

A company must be incorporated or registered under the Companies

Income tax relief for nine years. Duty free importation of plant, equipment and machinery.

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Hotel Incentives Act

Hotels qualifying must contain not less than ten bedrooms and facilities for meals and the accommodation of transient guests, including tourists, for rewards.

Income tax and duty concessions for ten (10) years for convention type hotels (containing 350 bedrooms).

TOURISM

Resort Cottages Act

The resort cottage must contain at least two (2) furnished bedrooms with kitchen, living room and bathroom facilities used for the accommodation of transient guests, including tourists, for reward.

Income tax relief for up to seven years. Duty free importation of building materials and furnishings.

Jamaica Export Free Zone Act

As in free zone incentives.

As in free zone incentives.

MANUFACTURING/ICT

Accelerated Depreciation/Special Capital Allowance

Qualified businesses must be certified by the Ministry of Industry, Commerce and Technology. For a data processing/system development business, at least 20% of its gross income must be derived from exports.

A certified business is allowed to deduct 50% of the full cost of any new machinery in the year of purchase and a further 50% in the following year.

Foreign Sales Corporation Act

An FSC is a foreign corporation that is allowed to earn some tax exemption on its exports from the US.

Provides relief from CET and GCT on equipment, machinery and materials. Five years exemption from income tax. Income tax relief on profits and capital gains.

International Finance Companies Act

To encourage the establishment of offshore banking facilities.

Provides relief from CET and GCT on equipment, machinery and materials. Five years exemption from income tax.

Shipping Act

Granted to approved Shipping Corporations.

Income tax relief and import duties for ten (10) years

Modernization of Industry

The investor must provide relevant support service or raw material to export manufacturer(s); or be involved in export trade or plan to enter the export market.

Relief from General Consumption Tax (GCT) on capital goods.

Urban Renewal Act

The Act is targeted at persons or organizations that carry out urban development in blighted areas.

Relief from income tax, stamp duty and transfer tax is provided for persons who purchase bonds issued for the purpose of urban development.

ALL INDUSTRIES

Factory Construction Law

The law is targeted at companies who construct factories and lease them to producers.

Relief from import duties (for items not available locally) and from income tax and on income from factory leasing or gains made

Foreign Direct Investment (FDI) in Jamaica

Investors have been bullish on Jamaica because:

› consistent low inflation,› equilibrium exchange rate,› liberalized trade,› stable and transparent political

institutions and procedures,› an independent and capable

judiciary,› very low levels of infectious disease

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Investing in Jamaica

JTI Services

› Investment Support› Business Approvals

Facilitation › Trade Advice› Marketing

Intelligence› Technical

Assistance› Trade

Commissioner Services

JTI Going Forward:

‘Culturally-inspired Creativity & Innovation’

Building our Competitive

Advantage… one Investor

at a Time!

Investing in Jamaica

JTI Services

Laurence JonesRegional ManagerEuropean Regional Office, London1 Prince Consort RoadLondon SW7 2BZ 

 Tel: 020 7584 8894  Fax: 020 7823 9886    E-mail:  ljones@jti.org.jm