Investment Environment

The government is extremely positive to foreign investments designed to make a contribution to Jamaica's economic and social development. Investments that will increase domestic income, employment, foreign exchange earnings, or foreign exchange savings, as well as those that transfer technology to the local society, are welcome.

Industrial Climate

An English speaking country with a competitively priced labour force, Jamaica is ideally located for trading with the rest of the Western Hemisphere. Proximity to the United States, the huge Latin American bloc and the Panama Canal is to be noted. The island is served by an abundance of natural resources and a developed infrastructure.

The liberal trade regime, together with the generous fiscal and market incentives available are attractive to investors, especially for export activities. There are no restrictions on the movement of capital, profits and dividends. There is minimum export and import restriction, and exporters are protected against trade discrimination by Jamaica's bilateral trade agreements and membership in the World Trade Organization. In addition, Jamaica's membership of the World Bank administered Convention on the Settlement of Investments Disputes between States and Nationals of other States, assures investors of a proper mechanism for settlement of disputes which may arise.

The Government has entered into Double Taxation Agreements with 12 countries, including some of the major developed nations. Investors from these countries may benefit from favourable income tax treatment as provided for under these treaties.

Among the significant areas of investment are information technology, tourism, film and entertainment, business services and high value agri-business areas.

New investment projects in Jamaica are facilitated by the government's investment promotion agency, Jamaica Promotions Corporation (JAMPRO), which provides a one-stop facility for processing the relevant documents and reducing bureaucracy. JAMPRO provides assistance in facilitating the establishment of businesses and the expediting of licences and incentives granted by the Government to investors.

Support of Investments - Incentives

Tax holidays are available for investments in free zone enterprises, certain industrial enterprises, tourism projects and agricultural activities. There are duty exemptions on many inputs for approved investments.

Financial Services

Special financial services for the productive sectors are provided through the Development Bank of Jamaica, and the Export-Import Bank.

Venture capital companies incorporated under the Companies Act and resident in Jamaica, if engaged in "venture capital transactions" as defined in the Income Tax Act, may obtain relief from income tax for up to ten years.

Industry incentives

Encouragement in the form of tax relief is given for inward investment in industrial enterprises producing for export, the hotel industry, and venture capitalists. Special income tax reliefs are available for certain agricultural activities. There are also special allowances for investment in assets in certain activities classified as "basic industries."

Specific incentives are set out under the following acts:

	The Export Industry (Encouragement) Act
	The Industrial Incentives Act (Although still law, no approvals are being made under this Act for an indefinite period)
	The Factory Construction Act
	The Jamaica Export Free Zones Act
	The Hotel Incentives Act
	The Resort Cottages Incentives Act
	The International Finance Companies (Income Tax Relief) Act (Although still law, no approvals are being made under this Act for an indefinite period)
	The Income Tax Act - (Agricultural & Venture Capital Incentives)
	The Urban Renewal (Tax Relief) Act 1995.
	The Motion Picture Encouragement Act
	The Shipping Act