Jamaica’s tax authority has published the final version of its transfer pricing agreement practice note, describing in detail a program designed to resolve transfer pricing issues on a prospective basis.
In a transfer pricing agreement, a taxpayer can agree with the Jamaican tax officials in advance on elements necessary to determine the taxation of cross-border related party transactions, such as the appropriate transfer pricing methodology to be used, comparables, adjustments, and assumptions.
This new guidance provides details on how to obtain a unilateral, bilateral, or multilateral transfer pricing agreement. It also discusses the legal effect of such agreements and how they should be administered.<
The Jamaican government said that, before finalizing the transfer pricing guidance, it consulted with taxpayers, other stakeholders, the International Monetary Fund, the Organisation for Economic Cooperation and Development, and the World Bank Group.
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