Jamaica: Tax treatment of gifts to employees, customers

Jamaica: Tax treatment of gifts to employees, customers

Employer-provided cash awards, gift vouchers or non-monetary gifts may be subject to payroll taxes and statutory contributions at the employer level and treated as taxable income at the employee level.

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The costs of gifts provided to employees will be deductive to the employer, for income tax purposes, but the “general consumption tax” (GCT) related to expenses incurred in providing the gift generally will not be recoverable as an input tax credit or refund. 

The costs of gifts provided to customers, offered to maintain the business relationship, will be deductible expenses in determining the company’s income tax liability, and also allow for purposes of recoverable GCT as input tax credits.

 

Read a December 2015 report [PDF 153 KB] prepared by the KPMG member firm in Jamaica: Tax considerations at Christmas time

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