Under the Omnibus Tax Incentives Regime, the following licensed tourism entities can benefit: Attractions, Hotels, Resort Cottages, Guest Houses, Villas and Apartments (new or existing). The incentive regime makes provision for:
Incentives for the Accommodation Sub-sector:
- Productive Input Reliefs (PIR) - This provides for an exemption from customs duty in respect of certain dutiable inputs on a prescribed list of goods imported. (Note: This relief applies on an ongoing basis so that licensed entities can update, refresh and upgrade their product offerings).
- The PIR also offers exemption from additional stamp duty in respect of a prescribed list of goods (high-end meat cuts) imported for use in the operation of a licensed entity.
- Capital Allowance - Capital expenditure (on specified assets) incurred on or after January 1, 2014, will be written off in accordance with the new capital allowance regime.
Note: Newly constructed buildings/structures used as a hotel may qualify for a 20% initial capital allowance for income tax purposes as well as annual allowances varying from 4%-12.5% per annum depending on primary materials used in the construction of the facility.
- Employment Tax Credit (ETC) - This is an income tax credit which is allowed to an eligible person e.g., an employer engaged in the rental of approved accommodation. ETC benefits employers who preserve and maintain their employees’ statutory obligations e.g., NHT, NIS, etc. ETC seeks to reduce:
- Labour costs
- Increase after-tax profit
- Lower rate of Corporate Income Tax rate of 25%.
Lower effective rate of income tax. - Lower rate of General Consumption Tax (GCT) of 10%.
Incentives for the Attractions Sub-sector:
- Productive Input Reliefs – This provides for an exemption from customs duty in respect of certain dutiable inputs on a prescribed list of goods imported.
Recent inclusion to PIR with respect to Attractions sub-sector: Expansion of the inputs allowed as per the Productive Inputs Relief (PIR) to include animal feed for attractions sub-sector.
Goods for use in a Tourism Attraction:- Machinery and equipment (including parts and accessories thereof) that are used directly in the operation of a tourism attraction.
- Materials, fixtures and fittings that are used directly for the installation and operation of machinery or equipment specified in (a), including essential support structures associated with that machinery and equipment.
- Live animals that are used directly in the operation of a tourism attraction, subject to approval by the Veterinary Division of the Ministry of Agriculture.
- Other goods (not being building materials, motor vehicles or consumables) that are used directly in the operation of a tourism attraction.
- Emergency, lifesaving, first aid and safety equipment and devices that are used directly in the operation of a tourist attraction.
- Motorized equipment and motor vehicles not licensed by the island traffic authority to drive on public roads.
(Note: This relief applies on an ongoing basis so that attractions can update, refresh and upgrade their product offerings).
- The PIR also offers exemption from additional stamp duty in respect of a prescribed list of goods (high-end meat cuts) imported for use in the operation of a licensed attraction.
- Capital Allowance - As of January 1, 2014, buildings or structures used as hotels may qualify for a 20% Initial Capital Allowance for income tax purposes as well as annual allowances varying from 4% -12.5% per annum depending on primary materials used in the construction of the facility.
- Employment Tax Credit in respect of payroll taxes (excluding PAYE)
Applications are available at:
Ministry of Tourism 64 Knutsford Boulevard, Kingston 5
Tel: (876) 920-4926-30
Fax: (876) 920-4944
www.mot.gov.jm
