There is no specific reference to investment in the Constitution which is the supreme law of Jamaica. However, the Constitution defines the right to property, and the definition of property can include investments.

There is no domestic legislation dealing directly with investments. There is legislation which can be used to enforce awards from foreign tribunals. There are also other pieces of legislation of more general application and the common law can be used to protect investors, as well as legislation on incentives schemes.

General requirements for establishment of an enterprise e.g. social security arrangements, labour law, application for utilities, etc.

No, foreign investment is not defined in the domestic law. However it is defined in the Bilateral Investment Treaties (BITs).

Yes, in the cases of JAMPRO (Jamaica’s Economic Development Agency) assisted foreign investment projects.

Assuming that foreign investment regulations means the entire regulatory framework concerning foreign investment, legal and administrative, yes, a natural person can resort to these regulations.

Subject to the point made in 2.3 concerning the definition of foreign investment regulations, citizens or residents can resort to these regulations if this is agreed to in a BIT or under any law. However this is not the case generally.

Yes, in case of joint ventures or companies majority owned by foreigners.

No, but this may be subject to contractual arrangements or incentive schemes which specify a time limit for utilization. Failure to meet these limits may result in the loss of privileges, etc., or advantages offered.

There may be specific provisions in BITs on this subject, also conditions under labour legislation dealing with work permits must be complied with.

The Constitution upholds the right of every citizen to own property in a multitude of forms. At the macroeconomic level, the Jamaican economy has become increasingly deregulated and this faces the rigors of the market. To supplement and enforce this policy thrust, the Fair Trading Act of 1993 seeks to ensure that competition and fair business practices are observed.

Jamaica is party to multilateral and bilateral treaties which provide for non-discrimination and provide for exceptions to this principle.

There is a distinction in the area of public procurement.

The standard BIT identifies the scope of foreign investment as the following:

There is no stated policy or regulation governing investment by special groups. However, the following outlines the areas of activity and the principles applicable for investments subjected to restrictions. The list has two sections:

List A

a) Projects which affect the national security of Jamaica, eg., narcotics, atomic (nuclear) energy facilities, and the manufacture of weapons/artillery.

b) All projects which involve the use of and/or manufacture of items on the Banned List under the Trade Act (Law 4 of 1955), Notice to Importers No. 3087 and Notice to Importers No. 3113.

c) Any activity which contravenes the Convention on International Trade in Endangered Species of Wild Fauna and Flora.

List B.

a) Projects which have an negative impact on the environment.

b) All activities which are in conflict with Jamaica’s foreign policy.

c) Projects which adversely affect good public morals, eg., pornographic materials.

d) Projects which involve the importation of toxic or solid waste materials.

e) The following sectors: life insurance; print and broadcast media, mining.

f) Such other activities which may be specified under the law.

The concept of reciprocity is found in our law to a limit in the Judgments (Foreign Reciprocal Enforcement Act).

Generally no, but where there are contractual requirements or time limits for the utilization of incentives under specific schemes as set out in legislation.

Yes, in all areas of the economy with the exception of those sectors on the negative list.

Generally, the standard is national treatment; but this is subject to the regime set out in the BITs.

Only a limited number of sectors are subject to the national treatment claims.

The constitutional grounds which allow for expropriation of or limitation to property are found in Section 18. Expropriation can occur under a law which sets the principles and manner in which compensation is to be determined and gives to any person claiming an interest in the property a right of access to the Courts in order to establish this interest and to obtain compensation.

Limitations to property are found in Section 18 (2), (3), (4) of the Constitution of Jamaica. Expropriation of land is done under the Land Acquisition Act.

The Land acquisition Act provides for compensation on the basis of market value at the date of the notification by the Commissioner of Lands. If no agreement on the value can be concluded, then the Court will arrive at a decision under Section 18 and 25 of the Constitution of Jamaica.

Yes, under the Land Acquisition Act, Section 36. However, in such a case interest must be paid.

Yes.

With the liberation of both our trade and foreign exchange regimes, no specific restrictions apply. In the case of the importation of capital goods, the Customs Department places the normal administrative stipulation. The area is also regulated by BITs.

This area is subject to provisions of the BITs. Also legislation of taxation, local employment, bankruptcy and contractual obligations are applicable.

Only one unified, market determined exchange rate obtains

Profits: These profits of companies and associations are dealt with under the Act and the rate is 25%.

Dividends: These are subject to a with holding of tax of 25% unless the shareholder is tax exempt or the company is tax exempt.

Assuming that this refers to profits put back into the company, then it has been addressed under profits.

Assuming that remittances refers to income remitted outside Jamaica, this is regarded as income under the Act and subject to a rate of 33.33% withholding tax for companies and 25% for individuals.

If the interest is on funds borrowed for the purpose of earning income, then the interest is tax deductible in the year in which the payment is actually made. In order to claim the payment as a deduction, a company making a payment to an overseas creditor must satisfy the Commissioner of Taxes, that any tax thereon was withheld by the company and paid to the Government.

This is covered under the Act and the rate is 25%.

These services are deemed to include technical services, personnel, etc. The income of the personnel would be taxed at 25%. While the services (if utilized in Jamaica) may attract the General Consumtion Tax (GCT) which is 15%.

If the asset is land, there is a property tax, with different rates for commercial and residential property. The transfer of property attracts a tax of 7.5% of the market value as a transfer tax. Transfers will also attract Stamp Duty.

Investment in equipment for manufacturing industry or agriculture, is subject to taxation unless there is an exemption under the Act or other legislation granting incentives. It is also possible to obtain relief under the Hotel Act (Incentives) and the Resort Cottages (Incentives) Act, for activity in these sectors.

The answers to these questions may be different above if there is a Double Taxation Treaty in force.

In some BITs taxation matters including Double Taxation Agreements are excluded from the regime which requires MFN and national treatment.

With the CARICOM, the United States and Canada.

The guiding principle overseeing Jamaica’s incentive regime is again the non discrimination between local and foreign investors. All elements of the country’s incentive regime are equally available to local and foreign investors, with the notable exception of the International Finance Companies (Income Tax Relief) Act of 1971 and the Foreign Sales Corporation Act. (Income tax at a rate of 2.5%). The major requirement for a corporate body to be granted relief under these Acts is that a minimum of 95% of its issued share capital must be held by non-residents of Jamaica.

The Jamaica Free Zone Act provides a number of generous incentives which are granted in perpetuity. Although not legally restrictive, most of the companies operate in the country’s three Free Zone are foreign owned. The incentives granted include:

Yes, only by virtue of special negotiated provisions in BITs. There is legislation which can be used to enforce awards from foreign tribunals.

Jamaica is a member of ICSID.

The Constitution is the supreme law of Jamaica and all domestic laws must conform to the provisions of the Constitution. In order for international agreements to have effect in our system they must be implemented by legislation. Any such legislation will be part of normal domestic law and subject to the Constitution. However if there is a conflict between legislation implementing BIT, and other legislation, which law will prevail depends on certain rules of interpretation. These rules include one that the law later in time will prevail to the extent of the inconsistency.

International agreements can only be invoked before the Courts if there is domestic legislation implementing them. In Jamaican law, these agreements do not have direct effect and do not form part of domestic law in the absence of implementing legislation, unless there is existing legislation which can implement them. The general exception to this principle is if provisions in the agreement form part of customary international law.

JAMPRO (Jamaica’s Economic Development Agency) offers a range services aimed at fulfilling the following objectives:

a) courage, expand and diversify investment

b) Modernize the production and management systems of companies

c) Stimulate the growth of Jamaican exports.

In tackling the above stated objectives, JAMPRO’s services specifically include:

a) Processing of incentives

b) Dissemination of trade information and data

c) Identification of join venture partners and offering matchmaking services for investors seeking cooperation in the areas of capital, technology, management, and marketing

d) Project development and evaluation and documenting same as business profiles.

The Ministry of Foreign Affairs has responsability for negotiating BITs. Where there are incentive schemes these are administered by the Ministry of Industry, Investment and Commerce.