Government to Impose GCT on Overseas Digital Services and Intangibles
The Government of Jamaica is set to impose General Consumption Tax (GCT) on digital services and intangible goods supplied from overseas and consumed locally, in a move aimed at modernising the country’s tax framework.
Finance Minister Fayval Williams made the announcement on Tuesday while speaking in the House of Representatives.
Under the proposed measure, GCT will apply to digital services and intangible products provided by non-resident companies without a physical presence in Jamaica but used by households and businesses on the island.
Williams indicated that the new tax is projected to generate approximately $300 million in revenue during the 2026/27 fiscal year. Revenue collections are expected to increase significantly to an estimated $4.2 billion in the 2027/28 fiscal year as the measure becomes fully operational.
The finance minister said the policy forms part of broader efforts to ensure fairness in an increasingly digital economy. She noted that digital services account for a growing share of consumption in Jamaica, yet existing arrangements have resulted in inconsistent application of GCT when such services are supplied from abroad.
The reform is aligned with the “destination principle” of taxation, under which tax is applied in the jurisdiction where the service is consumed rather than where it is supplied.
Implementation is expected to begin contributing to revenues in late 2026, with full effect anticipated in 2027.
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