Robert Miller, CSME Focal Point\Jamaica Caribbean Export Board member. - JUNIOR DOWIE/STAFF PHOTOGRAPHER
KINGSTON (CMC):
HEAD OF the CARICOM Single Market and Economy (CSME) Unit in Jamaica's Ministry of Foreign Affairs and Foreign Trade, Robert Miller, says there will be no double taxation on the earnings of CARICOM nationals who set up businesses or work in member states.
He said there has been a common view that persons who work in a CARICOM member state, other than their home country, will pay double taxes.
Clarifying the misconception, Miller explained that, "Under the CSME, you do not pay tax in both your country of origin and the host country. You are subject to the tax law of your country of origin only, not that of the host."
Under the Intra-Regional Double Taxation Agreement, which was implemented in 1994 and has so far been enacted in several CARICOM member states, all self-employed and wage earning CARICOM nationals are protected from paying taxes twice on the same earnings.
The countries are: Antigua and Barbuda, Barbados, Belize, Dominica, Guyana, Jamaica, St. Lucia, St. Vincent and the Grenadines and Trinidad and Tobago.
Miller emphasised that
CARICOM nationals should know the types of taxes that they are supposed to pay in their home country, before commencing work in another member state.
While CARICOM nationals do not pay tax in their host country, they are required to contribute to that country's social security scheme during their tenure of employment there, since they are entitled to the same benefits as the nationals of the host country.
SOCIAL SECURITY
This is in keeping with the CARICOM Agreement on Social Security, which came into effect on April 1, 1997.
To date, six categories of labour and service providers can benefit from the free movement of skills/labour clause, which is expected to be in full implementation by 2006.
These are university graduates, artistes, sportsmen and women, managers, media workers and entrepreneurs. They, however, have to gain a skills certificate from their country of origin before commencing work in their host country.
The skills certificate, which replaces the work permit, is procured in the country of origin.
