CANADIAN investors ARE NOW exempt from taxes on income derived from buying stocks on the main Jamaica Stock Exchange (JSE) market.
Joe Oliver, the finance minister in Canada, approved the JSE as a designated stock exchange under the Income Tax Act in the North American jurisdiction.
Importantly, stocks on the JSE’s Main Market will become more attractive to Canadian pension funds, investment managers and investors on a whole, according to the JSE.
It also means that should Jamaican Diaspora Bonds be listed on the JSE Main Market it will be very attractive to the Jamaicans in Canada as they will not be required to pay income tax when trading these bonds.
JSE had to meet certain criteria to be recognised as a designated exchange, including adherence to rules and regulations, maintain a reasonable level of liquidity and offer a range of products on the exchange.
“This is a significant milestone in our history, when the Canadian Government recognised the JSE as a designated exchange,” said Marlene Street Forrest, general manager of the JSE. “This seeks to further solidify the relationship between Jamaica and Canada, a country which was instrumental in assisting the JSE with its first sets of Rules and the JSE’s Securities Course.”
According to Attorney-at-Law Courtney Betty who represented the Stock Exchange in the application, “Canadian investors, especially those from the diaspora present a tremendous opportunity to grow the Jamaica Stock Exchange as well as contributing to the growth and development of Jamaica.”
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Stocks on JSE main market get tax-free status in Canada
