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No harm from dividend tax - JSE
Published: Friday | May 1, 2009
The Jamaica Stock Exchange says it is unlikely to be negatively affected by the Government's decision to Tax divident paid to to non-Jamaican residents or corporations.Moreover, the JSE says, bilateral taxation between Jamaica and other countries will cushion the impact on firms operating and listed here, but their shareholding mostly held abroad.
"For all the companies listed on the Exchange where there is a concentration of securities in the hands of non-resident corporations and individuals, there are bilateral treaty arrangements established between Jamaica and countries such as the United Kingdom, Canada and the United States of America," explained the stock market's[COLOR=orange ! important][COLOR=orange ! important][/COLOR][/COLOR] general manager, Marlene Street-Forest.
"Non-resident Corporations and individuals will, therefore, not be adversely impacted by the Government's decision to impose a 33 1/3 per cent taxation on dividend for these groups, as in reality where the treaty arrangements exists the non-resident is taxed at the treaty rate and not at 33 1/3 per cent," she said.
Finance minister Audley Shaw announced the measure last week as part of a $24 billion tax package, aimed at closing a gaping hole in his $557 billion Budget.
Published: Friday | May 1, 2009
The Jamaica Stock Exchange says it is unlikely to be negatively affected by the Government's decision to Tax divident paid to to non-Jamaican residents or corporations.Moreover, the JSE says, bilateral taxation between Jamaica and other countries will cushion the impact on firms operating and listed here, but their shareholding mostly held abroad.
"For all the companies listed on the Exchange where there is a concentration of securities in the hands of non-resident corporations and individuals, there are bilateral treaty arrangements established between Jamaica and countries such as the United Kingdom, Canada and the United States of America," explained the stock market's[COLOR=orange ! important][COLOR=orange ! important][/COLOR][/COLOR] general manager, Marlene Street-Forest.
"Non-resident Corporations and individuals will, therefore, not be adversely impacted by the Government's decision to impose a 33 1/3 per cent taxation on dividend for these groups, as in reality where the treaty arrangements exists the non-resident is taxed at the treaty rate and not at 33 1/3 per cent," she said.
Finance minister Audley Shaw announced the measure last week as part of a $24 billion tax package, aimed at closing a gaping hole in his $557 billion Budget.