Jamaica is one of the many countries with a very ambiguous take on taxation of cryptocurrency and its regulation. Even with the talks of CBDC, termed as digital Jamaican dollar, the central bank has only addressed the crypto currencies and the risks involved while dealing with them. Crypto currency can be taxed as either securities or income in Jamaica, with no clear demarcation between the two, making it difficult to determine the taxes applicable on one’s crypto assets.
Do you have to pay crypto tax in Jamaica?
Yes, crypto is taxable in Jamaica, although it is not clear whether as income or as securities.
When do you have to pay tax on crypto in Jamaica?
Crypto gains are taxed in Jamaica. Therefore any gains you make from selling crypto should be taxable.
What crypto transactions are taxable in Jamaica?
Selling, transferring and spending crypto should be the transactions taxable in Jamaica.
What are the Crypto Tax Rates in Jamaica?
Income less than JMD 6 million is taxed at a rate of 25%.
Income more than JMD 6 million is taxed at a rate of 30%.
These tax rates are levied on the excess of tax free threshold, that is at JMD 1.5 million.
Jamaica Income Tax Brackets (2023)
| INCOME BRACKET | TAX RATE (%) |
| Less than JMD 6 million | 25 |
| More than JMD 6 million | 30 |
Jamaica Capital Gain Tax Rates (2023)
There are no capital gain taxes in Jamaica, although a transfer tax is levied when a transfer of property, security etc. takes place at a rate of 2%.
How is Tax Calculated on Cryptocurrency in Jamaica?
While it is not clear how different crypto transactions are treated in Jamaica, we can estimate by following the norms. For determination of income derived from crypto, we will need to calculate the profit we make from a transaction. When you are selling the crypto you hold, you might be selling coins you acquired at different points of time and at different prices. This makes determining the cost of your asset difficult. There are two ways which can be used for this: First In First Out (FIFO) and Average Cost Basis (ACB).
According to FIFO Method, you sell your oldest acquired coin first and cost is calculated according to the respective prices at which the coin was bought. Whereas, in ACB, time of buying doesnt matter and average cost is taken into account.
Let’s take an example,
Say you bought 2 BTC for JMD 20,000 in 2020 and 4 BTC for JMD 60,000 in 2021. Then you sold 4 BTC in 2022 for JMD 1,00,000:
- FIFO METHOD
You sell 2 BTC from 2020 and 2 BTC from 2021. So cost price is:
= 20,000 + (2/4)*60,000
= JMD50,000
Profit = 1,00,000 – 50,000
= 50,000
Here, taxes are levied JMD 50,000.
- ACB METHOD:
All coins are of the same denomination. Therefore, cost price for one coin:
= (20,000 + 60,000)/6
= JMD13,333
So, cost price of 4 coins:
= JMD53,333
Profit = 1,00,000 – 53,333
= 46,666
Here, taxes are levied JMD 46,666.
Is there any Crypto Tax Free in Jamaica?
Buying and transferring crypto into another wallet should not be taxable in Jamaica.
Crypto Tax in Jamaica – FAQs
Do you have to pay tax when you buy crypto in Jamaica?
No, you don’t have to pay tax when you buy crypto in Jamaica.
Do you have to pay tax when you sell crypto in Jamaica?
Yes you have to pay tax when you sell crypto in the Jamaica
Do you have to pay tax when transferring crypto in Jamaica?
No, you don’t have to pay tax when transferring crypto in Jamaica
Do you have to pay tax when spending crypto in Jamaica?
Spending crypto should be taxable in Jamaica.
Is swapping crypto taxable?
Swapping crypto might attract taxes as security transfer.
How much tax on crypto gains in Jamaica?
| INCOME BRACKET | TAX RATE (%) |
| Less than JMD 6 million | 25 |
| More than JMD 6 million | 30 |
How do I avoid capital gains tax on crypto in Jamaica?
There are no capital gains tax, only a transfer fee of 2%.
Market Research Intern, Octaloop
Maitreyee takes a keen interest in financial technologies and their potential to transform lives at the grassroots. Put together with her penchant for Economic Research, she brings tonnes of academic and actionable insight into our products. Maitreyee is contributing at Binamite as a Market Research Intern, and when she's not doing that, you can find her exploring the city or buried in a book.