Investors wishing to produce films in the country would benefit from incentives under the Motion Picture Industry Encouragement Act. Under this Act, a recognised film producer is entitled to relief from income tax for a period not exceeding nine years, after the first release of the motion picture. The investor would also benefit from an investment allowance of 70 per cent of the total expenditure on the production facilities and this may be carried forward.
The investor would also be exempt from the payment of import duty on equipment, machinery and materials for the building of studios or for use in motion picture production.
Advantages
Jamaica is committed to the continued growth of its film industry, and offers a number of benefits to the investor including business friendly entry requirements and easy access to the visas and work permits needed to facilitate projects in the industry.
Tax Concessions
Producers and investors may apply through the Commission to access tax duty incentives offered under the Law. The benefits offered include:
- tax-free profits from overseas release of film and video for nine years
- duty-free and tax free concessions on equipment, machinery and materials for the building of studios and support facilities an investment allowance of 70% of sums spent on investment in infrastructure is provided, with a carry forward of the unused portion
- no withholding tax on dividends paid to resident shareholders with investments in film companies (non-resident shareholders earn dividends taxed according to the provisions of the Double Taxation Treaty with their respective countries, for example, USA, and UK are Treaty members thus eliminating the payment of taxes in Jamaica.)
- General Consumption Tax (GCT) rebate of 16.5% on a project by project basis on all goods and services purchased in Jamaica.
Approval Criteria
Qualifying for the incentives is easy. The company seeking incentives must simply:
- be incorporated in Jamaica
- complete application for Recognition Status and provide detailed business plan. Recognition Status may be granted for up to 15 years
- spend a portion of the budget for the production of motion picture(s) each year in Jamaica.
General Consumption Tax (GCT)
There is a flat rate of 16.5% levied on the total cost of most goods and service, however films and videos produced for export are zero-rated and companies with a Jamaican budget over $30,000 are assisted by the Commission in obtaining the GCT Exemption Status.
Motion Picture Recognition Application Form
