Jamaica: Tax measures in 2025/2026 budget

Direct and indirect tax proposals

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March 12, 2025

The Minister of Finance and the Public Service on March 11, 2025, presented the budget for financial year 2025/2026, which included the following tax proposals:

  • Increase in the general individual (personal) income tax threshold over three years from $1,700,088* to $2,003,496 for all individuals, both employed and self-employed
  • Reduction in withholding tax rate on dividends paid to nonresident companies and individuals from 33.5% and 25%, respectively, to 15% for both
  • Increase in general consumption tax (GCT) registration threshold from $10 million to $15 million for a 12-month period
  • Accelerated capital allowances for new investments in industrial buildings, machinery, equipment and information technology in tax years 2025 and 2026
  • Reform of GCT on the supply of electricity to residential customers

Read a March 2025 report prepared by the KPMG member firm in Jamaica

*$=Jamaican dollar

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