Jamaica Tax Deductions 2025

• General Principle: In calculating taxable income, businesses, including those with foreign investment, can generally deduct expenses that are wholly and exclusively incurred in the production of income.
• Specific Deductions: While a comprehensive list is beyond the scope of this summary, typical deductible expenses include:
  • Interest expenses (subject to certain limitations)
  • Depreciation/Capital allowances on assets
  • Business-related expenses
• Non-Deductible Expenses: Certain expenses are not deductible.
  While the specifics can vary, examples often include:
  • Expenses not directly related to income generation
  • Certain reserves
• Preference Dividends: Under specific conditions, a company may be able to deduct preference dividends paid during the year of assessment.
• Tax Credits: While not deductions, tax credits can reduce tax liability.
  Jamaica offers various tax credits, including:
  • Employment Tax Credit (ETC)
• Loss Carry-Forward: Businesses may be permitted to carry forward losses to offset future taxable income, subject to specific rules and limitations.