Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Double Taxation Relief Manual

From
HM Revenue & Customs
Updated
, see all updates

DT: Jamaica: double taxation agreement, Article 11: Management fees

  1. Management fees arising in one of the territories and paid to a resident of the other territory may be taxed in that other territory.
  2. Management fees may also be taxed in the territory in which they arise and according to the law of that territory; but where the management fees are paid to a resident of the other territory who is subject to tax there in respect thereof the tax so charged in the territory in which those management fees arise shall not exceed 12½ per cent of the gross amount thereof.
  3. The term `management fees` as used in this Article means payments of any kind to any person, other than to an employee of the person making the payments, for, or in respect of, the provision of industrial or commercial advice, or management or technical services, or similar services or facilities, or hire of plant or equipment but it does not include payments for independent personal services mentioned in Article 19.
  4. The provisions of paragraphs (1) and (2) of this Article shall not apply if the recipient of the management fees, being a resident of one of the territories, has in the other territory in which the management fees arise a permanent establishment with which the management fees are effectively connected. In such a case the provisions of Article 5 shall apply.
  5. If a resident of one of the territories who receives management lees which arise in the other territory and who is subject to tax in respect thereof in the first- mentioned territory so elects for any year of assessment, or financial year, the tax chargeable in respect of those management fees in the territory in which they arise shall be calculated as if he had a permanent establishment in that territory and as if those management fees were taxable in accordance with Article 5 as industrial or commercial profits attributable to that permanent establishment.
  6. Management fees shall be deemed to arise in one of the territories when the payer is the Government of that territory or a political sub-division thereof, a local authority or a resident of that territory. Where, however, the person paying the management fees, whether he is a resident of one of the territories or not, has in one of the territories a permanent establishment in connection with which the obligation to pay the management fees was incurred and the management fees are borne by that permanent establishment, then the management fees shall be deemed to arise in that territory.
  7. Where, owing to a special relationship between the payer and the recipient or between both of them and some other person, the amount of the management fees paid, having regard to the advice, services or use for which they are paid, exceed the amount which would have been agreed upon by the payer and the recipient in the absence of such relationship, the provisions of this Article shall apply only to the lastmentioned amount. In that case the excess part of the payments shall remain taxable according to the law of each territory, due regard being had to the other provisions of this Agreement.