The rule states that in determining a person’s taxable income, all non-capital costs and disbursements incurred wholly and exclusively to acquire the income are deductible.

Costs related to exempt income are not deductible.

The following expenses are not deductible:

Domestic and private expenses are not deductible;
Payments made to foreign affiliates are deductible to the extent they are at arm’s length, and provided taxes are withheld and remitted as required under the domestic law;
Interest payments to non-residents are deductible provided taxes are withheld and remitted as required under the domestic law;
Capital withdrawn or any sum employed or intended to be employed as capital is not deductible;
Capital employed in improvements is not deductible;
Foreign exchange gain or loss on capital assets are not taxable and not deductible for tax purposes, except in the case of fixed assets where the foreign exchange gain or loss is included in the cost of the asset and considered for depreciation;
Incorporation and similar expenses are not deductible;
Income tax, general consumption tax (including input tax credit), contractor levy, transfer tax and stamp duty incurred on capital assets, and asset tax are not deductible;
Property tax, payroll tax, and other business taxes are not deductible if not incurred to earn taxable income;
The UK and other Commonwealth income taxes are not deductible. These taxes may, however, be creditable against Jamaican tax;
Fines, penalties, and interest arising from tax arrears are not deductible;
Approved donations made to registered charitable and educational institutions exceeding 5% of taxable income are not deductible; and
Rent or repairs of premises or parts of premises not paid or incurred to earn taxable income are not deductible.

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