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Jamaica: Transfer pricing declaration, file with income tax return

Jamaica and transfer pricing declarations

Taxpayers having engaged in transactions with a connected or affiliated company during assessment year 2017 must file a declaration with their income tax returns by 15 March 2018.

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The declaration to be filed is Schedule 8 – Declaration of Connected Person Transactions.

The declaration must be completed and filed with the income tax return. Any person who fails to certify that the accounts and information used to prepare the income tax return include information about connected-person transactions (that is, related-party transactions) may be liable for a penalty of a maximum amount of J$2 million (or approximately U.S. $16,000) as well as possible criminal sanctions.

The taxpayer company would also be liable for any additional tax and interest related to the assessment, determined after the tax authorities apply the transfer pricing rules to the company’s income tax return.

Taxpayers that have gross revenue of J$500 million (approximately U.S. $4 million) must provide, on request from the tax authorities, transfer pricing documentation that verifies that the connected-person transactions for the year of assessment are consistent with the arm’s length principle. Taxpayers have 30 business days to provide the transfer pricing documentation after receiving a request from the tax authorities.

 

Read a January 2018 report [PDF 250 KB] prepared by the KPMG member firm in Jamaica

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