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HMRC internal manual

Double Taxation Relief Manual

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HM Revenue & Customs
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DT: Jamaica: double taxation agreement, Article 23: Elimination of double taxation

  1. Subject to the provisions of the law of the United Kingdom regarding the allowance as a credit against United Kingdom tax of tax payable in a territory outside the United Kingdom (which shall not affect the general principle hereof)-

 

 

  1. Jamaican tax payable under the laws of Jamaica and in accordance with this Agreement, whether directly or by deduction, on profits, income or chargeable gains from sources within Jamaica (excluding in the case of a dividend, tax payable in respect of the profits out of which the dividend is paid) shall be allowed as a credit against any United Kingdom tax computed by reference to the same profits, income or chargeable gains by reference to which the Jamaican tax is computed.

  2. Where a company which is a resident of Jamaica pays a dividend to a company resident in the United Kingdom which controls directly or indirectly at least 10 per cent of the voting power in the first- mentioned company, the credit shall take into account (in addition to any Jamaica tax for which credit may be allowed under sub- paragraph (a) of this paragraph) the Jamaica tax payable by that first-mentioned company in respect of the profits out of which such dividend is paid.

 

  1. For the purposes of paragraph (1) of this Article, the term `Jamaican tax payable` shall be deemed to include any amount which would have been payable as Jamaican tax for any year but for an exemption or reduction of tax granted for that year or any part thereof under-

 

  1. any of the following provisions, that is to say:

Section 28B of the Income Tax Law, 1954;
Section 10(4) of the Motion Picture Industry (Encouragement) Law, as amended;
Section 8(5) of the Pioneer Industries (Encouragement) Law, as amended;
Section 6(3) of the Saint Andrew Mines (Encouragement) Law;
Section 8(5) of the Textile Industry (Encouragement) Law, as amended;
Part II and Part VI of the Industrial Incentives Law, 1956, as amended;
Section 10 of the Export Industry Encouragement Law, 1956, as amended;
Section 11 of the Export Industry Encouragement Law, 1956, as amended by the Export Industry Encouragement (Amendment) Act, 1968;
Section 10(1)(a) of the Petroleum Refining Industry (Encouragement) Law, 1961 ;
Section 3 of the Income Tax (Amendment) (No. 3) Act, 1965;
Sections 9 and 10 of the Hotels (Incentives) Act, 1968;
Sections 7 and 8 of the Resort Cottages (Incentives) Act, 1971 (31 of 1971);
Sections 2 and 3 of the Income Tax (Amendment) No. 1 Act, 1972 (2 of 1972) ;
Sections 7 and 8 of the Agricultural Incentives Act, 1972 (5 of 1972);
so far as they were in force on, and have not been modified since, the date of signature of this Agreement, or have been modified only in minor respects so as not to affect their general character; and except to the extent that any of the said provisions (other than section 7(5) of the Hotels (Incentives) Act, 1968) has the effect of exempting or relieving a source of income for a period in excess of 10 years;

  1. any other provision which may subsequently be made granting exemption or reduction of tax which is agreed by the taxation authorities of the Contracting Governments to be of a substantially similar character, if it has not been modified thereafter or has been modified only in minor respects so as not to affect its general character.

Provided that where the relief is a relief accorded by the Export Industry (Encouragement) Law, 1956, it shall be taken into account for the purposes of this paragraph only in so far as it is effected by Section 8(5) of the Pioneer Industries (Encouragement) Law, as amended, or Part II of the Industrial Incentives Law, 1956, as amended, and if, and only if, the company qualifying for the relief could have been declared to be a company either (i) which was engaging in a pioneer industry under the provisions of Section 3 of the Pioneer Industries (Encouragement) Law, as amended, or (ii) which was an approved enterprise under the provisions of Section 4 of the Industrial Incentives Law, 1956, as amended.

  1. Subject to the provisions of the law of Jamaica regarding the allowance as a credit against Jamaican tax of tax payable in a territory outside Jamaica (which shall not affect the general principle hereof)-

 

  1. United Kingdom tax payable under the laws of the United Kingdom and in accordance with this Agreement, whether directly or by deduction, on profits, income or chargeable gains from sources within the United Kingdom (excluding in the case of a dividend, tax payable in respect of the profits out of which the dividend is paid) shall be all allowed as a credit against any Jamaican tax computed by reference to the same profits, income or chargeable gains by reference to which the United Kingdom tax is computed.

Provided that United Kingdom tax payable on chargeable gains from sources within the United Kingdom shall be allowed as a credit only against any Transfer Tax charged in Jamaica by reference to the same chargeable gains.

  1. Where a company which is a resident of the United Kingdom pays a dividend to a company resident in Jamaica which controls directly or indirectly at least 10 per cent of the voting power in the first-mentioned company, the credit shall take into account the United Kingdom tax payable by that first-mentioned company in respect of the profits out of which such dividend is paid.

 

  1. For the purposes of paragraphs (1) and (3) of this Article profits, income and chargeable gains owned by a resident of one of the territories which may be taxed in the other territory in accordance with this Agreement shall be deemed to arise from sources in that other territory.

  2. Where profits on which an enterprise of one of the territories has been charged to tax in that territory are also included in the profits of an enterprise of the other territory and the profits so included are profits which would have accrued to that enterprise of the other territory if the conditions made between the enterprises had been those which would have been made between independent enterprises dealing at arms length, the amount included in the profits of both enterprises shall be treated for the purposes of this Article as income from a source in the other territory of the enterprise of the first-mentioned territory and relief shall be given accordingly under the provisions of paragraph (1) or paragraph (3) of this Article.