Reverse Income Tax Credit Jamaica

Reverse Income Tax Credit Jamaica

What is the Reverse Income Tax?

The Reverse Income Tax (RIT) is a tax credit given to Jamaican taxpayers who invest in certain qualifying investments. It is a refundable tax credit and this means that income tax will be refunded to the taxpayer's bank account if the amount of the credit exceeds the tax liability. The RIT is available to individuals, companies and partnerships.

How Does the Reverse Income Tax Work?

The RIT is calculated as a percentage of the investment amount. The percentage varies depending on the type of qualifying investment. Investments include the Jamaica Stock Exchange (JSE), Real Estate, Businesses and Venture Capital.

The maximum amount of RIT that can be claimed in a year is J$500,000,000. There is no limit to the number of years that the RIT can be claimed.

What are the Eligibility Requirements for the Reverse Income Tax?

In order to be eligible for the RIT, the taxpayer must:

• Be a resident of Jamaica
• Be 18 years or older
• Have a Taxpayer Registration Number (TRN)
• Make a qualifying investment

How to Apply for the Reverse Income Tax Credit

To apply for the RIT, the taxpayer must submit a RIT application form to the Tax Administration Jamaica (TAJ) along with the following supporting documents:

• Proof of investment
• TRN
• Bank account information

The RIT application form can be downloaded from the TAJ website. It usually takes about 6 weeks to process an RIT application.

Conclusion

The RIT is a valuable tax credit that can provide Jamaican taxpayers with significant tax savings. It is a good way to encourage investment in Jamaica and to stimulate economic growth.