Guide to Manufacturing Sector Concessions

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Discover key concessions available to manufacturers in Jamaica, including legislative incentives and relief measures such as tariff reductions, tax credits, and special economic zones. Learn about the items eligible for concessions and the definition of manufacturing materials. Take advantage of these benefits to boost production and profitability.

  • Manufacturing
  • Concessions
  • Incentives
  • Jamaica
  • Export

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  1. Step by Step Guide to Export KEY CONCESSIONS AVAILABLE TO MANUFACTURERS

  2. 2016 Contribution of the Manufacturing Sector 8.5% to Gross Domestic Product (GDP) 77,500 jobs US$486.7 million in foreign exchange earnings J$55 billion in taxes

  3. Pieces of Legislation Governing Incentives for the Manufacturing Sector The Customs Tariff Amendment Act (effective January 1, 2014) The Fiscal Incentives (Miscellaneous Provisions) Act (effective January 1, 2014) General Consumption Tax Amendment Act (October 1, 2014) The Stamp Duty (Amendment of Schedule)Order (effective January 1, 2014)

  4. The production of goods in Jamaica by means of a process of manufacture, but DOES NOT include the production of goods which results from a process that consists primarily of any one or more of the following Dividing (including cutting), purifying, drying, mixing, branding, testing or applying any other similar process to a product, produce or material that is acquired in bulk. Improving or altering any articles or materials without making a change in their character; or Repairing, refurbishing, reconditioning, restoring or other similar processing of any articles or combination of such processes. sorting, packaging, Definition of Manufacturing materials, or any 4

  5. List of Key Concessions Relief of Common External Tariff Relief of Advanced General Consumption Tax (GCT ) Relief of Additional Stamp Duty 50% Discount on Customs Administrative Fee (CAF) Deferment of GCT Employment Tax Credit (ETC) Special Economic Zones

  6. Items for Concession Packaging Materials Intermediary Goods Machinery and Equipment/Parts Consumables Raw Materials Materials lubricating oils or fuel oil for use in internal combustion and articles consumed or expended by a taxpayer directly in the process of the production of primary products manufacture of goods. (excluding Materials contain, identify, preserve or display products manufactured goods" used protect, to Natural goods which have not been worked processed preservation of which is ensured transportation storage that original characteristics are unaltered remain substantially unaltered. or primary Goods been from state by being worked or processed, which have to undergo further working or be incorporated with some other goods or material production of primary products manufacture of goods. which transformed their have Goods imported for direct use production of primary products manufacture of goods. in the or the natural engines) primary but and or but during Goods quality control testing, packaging or climate- controlled storage of such products/goods. imported for or their along or the and in the or the

  7. Items Ineligible for Concession 1 2 3 Goods listed in Part 1 of the Fourth Schedule of the Customs Act, The Customs Amendment No. 2 and 3 Resolution, 2013. Goods listed in Part IV of the Third Schedule of the Customs Tariff Resolution, 2013. Goods Commissioner is satisfied can be obtained adequate supplies locally or regionally. which the in Tariff

  8. Incentive How it is Administered Deferment of General Consumption Tax Deferment of General Consumption Tax (GCT) on raw materials, intermediate consumables and machinery (including spare parts) at the point of importation. In addition GCT is deferred on packaging materials at the point of local purchase. and packaging goods, Conditions: Manufacturers/Producers making taxable goods or involved in mixed activities (producers of both exempt and taxable goods) are allowed to import without the payment of GCT on items that would normally qualify under the Productive Input Relief (PIR) of the Fiscal Incentives Act. You are, however, required to account for the GCT when you file your GCT returns by the last working day of the month following the importation of the item (s). involved in Concessions Manufacturers/Producers exclusively in making exempt goods are required to pay GCT on their imports that are used in the manufacturing process. However, you will be allowed a refund of the GCT paid on items that would qualify under the PIR when you file your GCT returns. involved NOTE: Registered Taxpayers must gross $3,000,000 and over in total supplies to benefit. The GCT Return Form 4A was amended to facilitate the process. Certificates are valid for one (1) year. 8

  9. Incentive How it is Administered PROCESSING Economic Operator (AEO) entry. Customs Administrative Fee 50% discount FEE: Authorized CUSTOMS EXAMINATION FEES: On containers of goods of raw materials, intermediate and packaging goods. NOTE This concession does not apply to capital equipment, bulk cargo or itemized imports. Goods imported under Part 5 of the Third Schedule to the Custom Tariff (Revision) Resolution, 1972 will not attract the advance 5% GCT. Relief of Advanced General Consumption Tax Concessions Special Economic Zones All complete the registration form which may be requested at info@jseza.com or you may schedule an appointment with the JSEZA and a representative will be assigned to assist you with completing the documentation.. Visit the Jamaica Special Economic Zone website at http://www.jseza.com/ for information. interested parties are invited to via email Company must be registered with MICAF and Jamaica Customs. Manufacturing status is renewable every three (3) years. Duty Relief 9

  10. Incentive How it is Administered Allowed to employers who pay and file SO1s on time Employers Tax Credit (ETC) Restricted to 30% of income tax liability from trade Reduces the Income Tax rate to an effective rate of 17.5% Computing the ETC Step 1: Total payroll statutory contributions for NIS, Ed Tax, NHT and HEART (employee and employer s portion) filed/paid on time. Step 2: Compute tax chargeable (i.e. at 25%) on profits from trade (exclude non-trade income /passive investment income). Step 3: Claim ETC as computed at Step 1 or a maximum 30% of the amount computed at Step 2, whichever is lower. Concessions NOTE: ETC is not refundable and cannot be carried forward (or back) for use in other years of assessment. 10

  11. Accessing Concessions Manufacturing Registration GCT Deferment Obtain a Manufacturing Status form from the Ministry of Industry, Commerce, Agriculture and Fisheries (MICAF) or the JMA. Submit completed Manufacturing Status form to MICAF along with the company s updated Tax Compliance Certificate (TCC) and Business Registration Certificate. Include a description of your Production Process via a flowchart diagram for each product. Note your process flow chart (s) must depict items being imported such as raw material and machinery used. MICAF sends the application to Jamaica Customs. MICAF and Jamaica Customs conduct a joint verification visit to the manufacturer s site. Jamaica Customs makes a determination of approval for import relief. Jamaica Customs issues a letter to the applicant after the determination is made. Submit your documentation to the following representatives at MICAF: Team Leader: Marcus Edwards contact number- 968-8599; Email: medwards@micaf.gov.jm Mrs. Avis Matthias contact number- 968-8610; Email: amatthias@micaf.gov.jm Mr. Derick Wellington contact number- 968-8534; Email: dwellington@micaf.gov.jm industry@micaf.gov.jm Obtain GCT Deferment Form from the JMA or TAJ Submit completed form to: The Commissioner General Tax Administration Jamaica 191 Constant Spring Road Kingston 8 Telephone: 969 0000 Contact: Stephanie Chin 11

  12. Assist Guide Advocate Inform Promote Market Train Matchmake Develop The JMA was established in 1947 to offer services that: 12

  13. 85A Duke Street, Kingston Tel: 922-8880-3; Fax: 922-9205 email: jma@cwjamaica.com website: www.jma.com.jm Facebook: www.facebook.com/JMAlimited Twitter: https://twitter.com/manufacturersja THANK YOU 13

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