Creation of Special Economic Zones

15 Feb 2016

On February 15th, 2016, the Gazette published the "Special Economic Zones Act, 2016".

This Act lays the foundations for the creation of Special Economic Zones. An entity called the Authority regulates and supervises the Zones. It grants access to zones to companies on the basis of selection criteria, and seeks to increase job creation and investments. The zones can be "general" or "specialized" (in other words, devoted to predefined economic activities). The approved companies can benefit, under various conditions, from: a) assets tax relief; b) customs duty relief; c) a 12.5 per cent tax on their chargeable income; d) an exemption of income tax on profits from rentals of property; e) a zero per cent tax rate on dividends derived from the shares of the companies themselves; f) a promotional tax credit equivalent to the amounts invested in research and development, as well as in training; g) a general consumption tax relief (including a zero per cent tax rate on electricity and telephone service); h) a stamp duty relief; i) a tax relief on the sale of land. At the same time, this Act repeals the "Jamaica Export Free Zones Act", and provides details on the transition from Free Zones to Special Economic Zones.

Nature of measure:

• Facilitation
• Incentives

Type:

• Promotion and facilitation (Special economic zones)

Industry:

• Primary (Agriculture, forestry and fishing)
• Manufacturing (Manufacture of food products, beverages and tobacco products, Manufacture of textiles, wearing apparel, leather and related products, Manufacture of wood and paper products, Printing and reproduction of recorded media, Manufacture of coke and refined petroleum products, Manufacture of chemicals and chemical products, Manufacture of basic pharmaceutical products and pharmaceutical preparations, Manufacture of rubber and plastics products, and other non-metallic mineral products, Manufacture of basic metals, Manufacture of fabricated metal products, except machinery and equipment, Manufacture of computer, electronic and optical products, and electrical equipment, Manufacture of machinery and equipment n.e.c., Manufacture of transport equipment, Manufacture of furniture, Other manufacturing)
• Services (Transportation and storage, Publishing, audiovisual and broadcasting activities, Computer programming, consultancy and related activities, Legal and accounting activities, Scientific research and development, Other professional, scientific and technical activities, Administrative and support service activities, Public administration and defence; compulsory social security, Education, Other service activities)

Sources:

• Gazette, The Special Economic Zones Act, 2016, https://www.japarliament.gov.jm/attachments/article/341/The%20Special%20Economic%20Zones%20Act,%202016%20No.%207.pdf, 15 Feb 2016