Transfer pricing rules in Jamaica have an effective date of 1 January 2015. Accordingly, the required reporting of related-party transactions will be due by 15 March 2016 (for those taxpayers who file their tax returns by 15 March 2016).
Taxpayers are to attach a schedule to their 2015 income tax returns, to list their related-party (“connected-party”) transactions. On that schedule, taxpayers must provide certain information such as the names of the related parties and the amounts of the transfer prices (or arm’s length consideration) that apply for each transaction.
There is no requirement to provide transfer pricing documentation for the year of assessment 2015 (but it may be prudent to create and retain contemporaneous records of such transactions).
The year of assessment 2016 is the first year for “full compliance” with the transfer pricing provisions. This means that in addition to reporting all related-party transactions, taxpayers that satisfy a gross revenue threshold must prepared and retain transfer pricing documentation and present it to the tax authorities on request. Accordingly, 2016 will be the first year for the tax authorities to enforce compliance with the transfer pricing rules.
Read a December 2015 report [PDF 193 KB] prepared by the KPMG member firm in Jamaica: Transfer Pricing: Implementation for Year of Assessment 2015
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