Legal Framework

Partnerships do not have legal personality

There is no law governing general partnerships. Rather, relationships and representation of the partnership are governed by English common law and by the partnership agreement. The same applies to joint ventures, for which no provisions in the law have been enacted.

The limited partnerships Act (1853) governs the limited partnership.

Taxation

Partnerships are treated as tax transparent and are, as such, not subject to income tax. The partners, whether corporate or individual, are taxed on their respective share of the partnership’s profits.

Taxation of foreign partners

Non‐resident partners of a Jamaica partnership are subject to Jamaican tax on their share of the partnership profits that accrue in or are derived from Jamaica. Under a treaty between the country of residence of the partner and Jamaica, the partner a PE in Jamaica is required to tax the partner on the income derived in connection with the Jamaica PE. Relief for double taxation of the PE’s profits is generally available under the applicable treaty. In case no treaty has been concluded between Jamaica and the residence country of the partner, income is deemed to be derived in Jamaica if activities are carried out within Jamaica or if the partnership is managed and controlled in Jamaica. Non-resident partners are treated taxed at the same rates which apply to resident taxpayers.

Joint Ventures

A joint venture, an association of persons established for a specific project, is generally treated as a partnership and taxed in the same way as discussed above.

Ordinary Partnership

The number of partners of an ordinary partnership is limited up to 20. As mentioned above, the ordinary partnership does not have legal personality.

Limited Partnership

A Jamaica Limited Partnership consists of one or more general partners with unlimited liability for all of the partnership’s debts and one or more limited partners which are only liable for the contribution to the partnership (limited partner). General partners represent an manage the limited partnership whereas limited partners do not have any powers related to the partnership’s business. The Official Gazette publishes the terms and conditions of the partnership. As mentioned above, the limited partnership does not have legal personality.

Further information on the general investment, tax and regulatory regime about the country is available at the following external references:

Investor Guide - investing and operating in Jamaica - click here
Taxation overview by Tax Administration Jamaica – click here
“Doing Business” report from World Bank – click here
Reports and publications from OECD – click here.
Reports and publications from IMF - click here.

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