Tue Mar 07 13:16:00 GMT-05:00 2017
Taxpayers are subject to the application of the transfer pricing regime if they have ‘connected persons’ (in accordance with the definitions of Section 2(2) of the Income Tax Act) in Jamaica or abroad, and have carried out transactions with those connected persons or with business entities or persons resident in low/no tax jurisdictions during year of assessment 2016.
All Taxpayers must account for and pay the associated taxes (if any) in respect of all transactions carried out with ‘connected persons’ or with business entities or persons’ resident in a low/no tax jurisdiction during year of assessment 2016. The obligations are as follows:
a.) completing of Schedule 8 (Declaration of Connected Person Transactions) in relation to all transactions with ‘connected persons’ and with business entities or persons’ resident in low/ no tax jurisdictions and submitting it by 15 March 2017. Schedule 8 is a part of the annual income tax return and
b.) preparing and maintaining transfer pricing documentation in accordance with the Income Tax (Transfer Pricing Documentation) Regulations, 2015 for all taxpayers with five hundred million dollars ($500,000,000) or more as gross annual revenue in the previous year of assessment.
Transfer pricing documentation shall be provided to the Commissioner General within thirty working days of the written request being duly issued by the Commissioner General.
Taxpayers are being reminded that penalties are applicable for offences related to year of assessment 2016 including non-filing and non-compliance. It is recommend that taxpayers prepare transfer pricing documentation in the same period that the transactions are executed, and file Schedule 8 with the Income Tax Return prior to the deadlines.
TAJ has launched a new user-friendly Transfer Pricing Hub with useful information, legislation, articles and forms that will guide you in the process of complying with transfer pricing obligations, seeking to minimize the risk of non-compliance during the process. To access the Transfer Pricing Hub, visit www.jamaicatax.gov.jm and click on the option "Transfer Pricing" under the “Information about” section.
For further information persons may contact the Customer Care Centre at 1-888-Tax-Help (1-888-829-4357) toll-free or contact a Client Relationship Manager, Large Taxpayer Office.