2. A few points deserve special emphasis:
• Unitary tax system • Switzerland is sometimes considered a tax haven
due to its general low rate of taxation, its political
• First, Jamaica’s tax system operates stability as well as the various tax exemptions or
within an unusually constrained reductions available to Swiss companies doing
business abroad, or foreign persons resident in
macro-fiscal environment: Switzerland.
• Federal tax system
• Switzerland places taxes on income and wealth
– Jamaica is not only a small open (direct taxes) as well as on goods and services
(indirect taxes). The tax system is quite complex
economy and thus particularly due to the fact that the Confederation, the 26
sensitive to fluctuations in cantons and about 2,600 municipalities, levy their
own taxes based on the Federal Constitution and
theglobal economy, but with a 26 cantonal constitutions.
particularly high level of public
debt in excess of 120% of GDP; • The three levels of taxation
– Its economy is dominated by Taxes are levied on three levels (federal / cantonal /
municipal level) and the delimitation of taxation
tourism and the export of bauxite powers is governed by the Federal Constitution.
The following table shows the direct taxes levied at
– both unusually sensitive each level. In addition, the parishes of the
toglobal economic trends; and three national churches (Roman Catholic,
Protestant or Christ Catholic) levy a church tax on
their members in almost all cantons and usually
also on the legal entities liable for tax in the canton.
3. A few points deserve special emphasis:
• Within this context, Jamaica’s performance
in revenue mobilization is impressive. For
more than a decade revenue collections
have significantly exceeded 20% of GDP.
This is a strong performance for any country
– especially one in the Lower Middle Income
(LMI) Group.
• Second, not only is the quantitative
performance of Jamaica’s revenue system
in good order, but the broad elements of the
design of the system conform to normative
standards. As discussed below, Jamaica’s
revenue system is dominated by the suite of
major economically buoyant taxes that
characterize the design of the revenue
systems of all fiscally successful countries.
• Third, within this positive context, Jamaica's
tax system has mobilized revenue at a high
cost: high rates for all of the major taxes,
administrative procedures and business
processes that compound the costs of
doing business, and lower than optimal
levels of compliance.
4. A. TAXES PAYABLE
Federal and cantonal taxes and levies • National taxes and levies
• Taxes are governed in Switzerlandby federal law Jamaican resident companies are liable to income
and 26 different cantonal tax laws. The tax on all sources of non-exempt income wherever
• cantonal tax laws were harmonised with effect from arising. A company is regarded as resident in
1993. Tax declaration procedures and Jamaica if its central management and control is
• the determination of the taxable income in the located and exercised in Jamaica.
various cantons are similar and in line with A non-resident company is taxed on income of a
• branch carrying on a trade or business in Jamaica,
the federal law. However, the cantons do set their i.e. the income arises in Jamaica. The rate of tax on
own tax rates. The presence of different companies is 33.3%. The tax year or ‘year of
• tax legislation means that the fiscal burden on a assessment’ is a period of 12 months commencing
Swiss company depends not only on on 1 January in each year. Companies are
• the size of its income and assets but, to a assessed tax on their income which arises in the
considerable degree, also on the location of its basis period and this normally coincides with the
• registered office, its business objects and the year of assessment. Where the company usually
nature of its operations. Taxation may vary makes up its accounts for a period other than the
• calendar year, the Commissioner of Income Tax will
significantly from one canton to another. In general, allow this period to be substituted for the calendar
the cantonal laws are flexible and year. The company is expected to submit its Return
• include tax privileges for special purpose by 15 March following the year of assessment and
companies e.g. holding companies. pay any balance of tax due. The company is
required by law to make payment of tax based on
the results of the preceding year (estimated tax).
Payment of estimated tax is due in four equal
instalments on 15 March, 15 June, 15 September
and 15 December. Any balance of tax is payable by
the following 15 March when the Return is due for
filing.
