In Jamaica, if you have registered a partnership business between two people, you typically need to file both personal tax returns and a business tax return. Here's a breakdown:

1. Personal Tax Returns:

   • Each individual partner is responsible for filing their own personal tax return with the tax authority in their country of residence. This includes reporting any income they receive from the partnership business, whether it's in the form of profits, dividends, or other distributions. Personal tax returns should include all sources of income earned by the individual, not just income from the partnership business.

   • Personal tax returns should include all sources of income earned by the individual, not just income from the partnership business.

2. Business Tax Return:

   • The partnership business itself is also required to file a separate business tax return with the TAJ. This return should report the partnership's income, expenses, deductions, and other financial details for the tax year.
   • Partnerships in Jamaica are typically subject to the General Consumption Tax (GCT) and may also be subject to other taxes depending on the nature of the business.

Regarding the situation where one partner does not live in Jamaica:

1. Non-Resident Partner:
   • If one partner in the partnership does not live in Jamaica, they are still responsible for reporting their share of partnership income on their personal tax return in their country of residence.
   • Depending on the tax laws in their country of residence, they may also be required to report any income earned from sources outside their country of residence, including income from the Jamaican partnership.
   • It's important for the non-resident partner to consult with a tax advisor or accountant familiar with the tax laws in both Jamaica and their country of residence to ensure compliance with all applicable tax regulations.

In summary, both partners in the Jamaican partnership would typically need to file personal tax returns, and the partnership itself would need to file a separate business tax return. The non-resident partner should also consider their tax obligations in their country of residence. Consulting with tax professionals is recommended to ensure compliance with all tax laws and regulations.

The information provided in this guide is intended for general informational purposes only and should not be construed as legal advice. While we strive to ensure the accuracy and reliability of the information presented, it is advisable to seek professional legal counsel or guidance specific to your situation. Jamaica Homes bears no responsibility for any actions taken based on the information provided in this guide. Updated Fri 23 Feb 2024