INTERNATIONAL FINANCE COMPANIES (INCOME TAX RELIEF) ACT

ARRANGEMENT OF SECTIONS

   1   Short title

   2   Interpretation

   3   Power of Minister to grant certification of approval to international financial companies

   4   Cancellation of certificates

   5   Relief from income tax

   6   Publication of grant, amendment and cancellation of certificate of approval

   7   Dividends and payments persons abroad

   8   Regulations

   9   Saving

 

THE INTERNATIONAL FINANCE COMPANIES (INCOME TAX RELIEF) ACT

[Date of Commencement: 1st January, 1971]

Acts
1 of 1971,
22 of 1975.

LN 165/1999.

1   Short title

   This Act may be cited as the International Finance Companies (Income Tax Relief) Act.

2   Interpretation

   (1) In this Act-

   "approved company" means an international finance company in relation to which a certificate of approval has been granted under section 3 and remains in force;

   "domestic operations" in relation to a company means-

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

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

   (c)   the provision of staff for the company;

   (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 company;

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

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

   "existing company" means a company which at the 1st January, 1971., was entitled to any relief from income tax pursuant to the International Business Companies (Exemption from Income Tax) Law, 1956 (now repealed) and which, pursuant to the provisions of any law, continues to be entitled to such relief;

   "financial transactions" means buying, selling, holding or managing securities, accepting deposits, borrowing money, lending money, placing deposits, issuing guarantees, letters of credit and acceptances, underwriting, collecting and transmitting funds, discounting, foreign exchange dealings whether for immediate or future delivery, buying of receivables and other obligations with or without recourse, leasing of property, conducting trust business and providing management consultant services, buying, selling and dealing in bullion and specie, and other like transactions normally carried on by an international financial institution in the ordinary course of its business;

   "international finance company" means a body corporate, whether incorporated under the law of Jamaica or not, which is primarily engaged in financial transactions and in the case of which all of the following conditions are fulfilled-

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   (a)   not less than 95% of the issued share capital is held by persons not resident in Jamaica, and no voting power in relation to that percentage of such capital is exercisable by a person resident in Jamaica otherwise than as a nominee of persons not so resident;

   (b)   not more than 5% of the sums which, on a liquidation thereof, would be receivable by holders of share or loan capital would be receivable by persons resident in Jamaica;

   (c)   not more than 5 % of the assets which, on a liquidation thereof, would be available for distribution after the payment of creditors would be receivable by persons resident in Jamaica; and

   (d)   not more than 5% of-

         (i)   the interest payable on its loans and loan capital, if any; or

         (ii)   of the dividends payable on its preference share capital, if any; or

         (iii)   of the dividends payable on its share capital, if any, not being preference share capital,

      is receivable by persons resident in Jamaica;

   "prescribed financial operations" has the meaning attributed to it in subsection (1) of section 3;

   "principal Act" means the Income Tax Act;

   "securities" means shares, stock, bonds, notes, debentures, debenture stock, units under a unit trust scheme and any other securities prescribed by the Minister for the purposes of this Act.

   (2) Except as provided by subsection (1), any expression appearing in this Act which is defined in the principal Act shall have the meaning assigned to that expression by the principal Act, unless the context otherwise requires.

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