Dec 2009 Financial News

NCBJ Limited – Notice to Shareholders

Dec 14, 2009

The following Notice to Shareholders was received from National Commercial Bank Jamaica Limited:

With effect from January 1, 2009, all ordinary dividends paid by Jamaican resident companies to resident shareholders will be taxable at a nil rate. As a result of this amendment, dividend income received by Jamaican residents holding shares in Jamaican companies that are not listed on the stock exchange will enjoy the same tax-free relief given to dividend income received by resident shareholders of listed Jamaican companies.

It should be noted, however, that the newly enacted section 30(4) of the Act expressly excludes from this tax-free relief, preference dividend income which qualifies for deduction under section 13(3) of the Act. All resident shareholders, in receipt of such preference dividend income from Jamaican resident companies, are liable to tax on that income. The Act currently makes no provision for withholding income tax on making tax deductible preference dividend payments to shareholders.

As a result of an amendment to Section 31 of the Act, effective from July 1, 2009, all dividends paid by a company to non resident shareholders are now fully liable to income tax at the rate of 25% for individuals and 33 1/3% for any other person, subject to any treaty protection or incentive relief available.


Source:
The Trinidad and Tobago Stock Exchange Limited
Friday December 11, 2009