FOREIGN SALES CORPORATION ACT

ARRANGEMENT OF SECTIONS

   1   Short title

   2   Interpretation

   3   Power of Minister to grant certificate of designation to foreign sales corporation

   4   Termination of status as designated corporation

   5   Relief from income tax

   6   Relief from income tax of director or employees of designated corporation

   7   Exemption from certain statutory contributions

   8   Dividends to non-resident shareholders in designated corporation

   9   Transactions with persons resident in Jamaica

   10   [Deleted by Act 11 of 1992 s 2.]

   11   Free entry of machinery and equipment

   12   Restrictions upon the disposal of goods imported or purchased free of customs and similar duties

   13   Fees

   14   Exemption from income tax of investment in foreign currency

   15   Regulations

      SCHEDULES

 

THE FOREIGN SALES CORPORATION ACT

[Date of Commencement: 14th November, 1984]

Act 20 of 1984.

LNs
93S/1986,
165/1999.

1   Short title

   This Act may be cited as the Foreign Sales Corporation Act.

2   Interpretation

   In this Act, unless the context otherwise requires-

   "designated corporation" means a foreign sales corporation in relation to which a certificate of designation has been granted under section 3 and remains in force;

   "domestic operations" in relation to a designated corporation means-

   (a)   the acquisition or rental of accommodation to be occupied and used by a designated corporation for the purposes of its business or to be used for the purpose of providing living accommodation for employees or officers of the corporation;

   (b)   the maintenance or disposal of such accommodation as aforesaid;

   (c)   the provision of stand for the corporation;

   (d)   the provision of equipment and services for use in such accommodation or by such staff as aforesaid for the purposes of the business of the corporation;

   (e)   the provision of technical and professional advice and services (including advice and services as a director of the corporation) for the purposes of the business of the corporation;

   (f)   such other operations as may be prescribed by the Minister by order;

   "foreign sales corporation" means any corporation which-

   (a)   is incorporated or registered under the Companies Act;

   (b)   is, pursuant to the provisions of the relevant legislation in a scheduled State, qualified to be regarded as a foreign sales corporation in that State; and

   (c)   has elected, or satisfied the Minister that it proposes to elect within a period indicated by the corporation to the Minister, to be so regarded in that State;

   "foreign trade transaction" means, subject to the provisions of this Act, any transaction-

   (a)   entered into by a designated corporation with persons not resident in Jamaica; and

   (b)   which, pursuant to the relevant legislation of the scheduled State, is the source from which foreign trade income is determined in establishing the tax liability of a foreign sales corporation in that State;

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   "relevant legislation" in relation to any scheduled State means the legislation of that State which provides for tax concessions to foreign sales corporations and which is specified, in relation to the scheduled State, in the second column of the First Schedule;

   "scheduled State" means a State which-

   (a)   is specified in the first column of the First Schedule; and

   (b)   by its legislation provides for the grant of tax concessions to foreign sales corporations.

3   Power of Minister to grant certificate of designation to foreign sales corporation

   (1) The Minister may, on the application of a foreign sales corporation, grant a certificate certifying that the corporation as a designated corporation for the purposes of this Act.

   (2) A certificate under this section shall, subject to the provisions of this Act, be valid for a period of fifteen years and may from time to time be re-issued for further periods of fifteen years.

   (3) An application for a certificate under subsection (1) shall be made in writing to the Minister in such form and containing such particulars as may be prescribed.

4   Termination of status as designated corporation

   (1) A designated corporation may, by notice in writing to the Minister, terminate its status as a designated corporation from such date as may be specified in the notice.

   (2) Subject to subsection (3), the Minister may, by notice in writing to a designated corporation, terminate from such date as may be specified in the notice, the certification of that corporation if-

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