Sun | Jun 20, 2021

Destination Downtown: The capital city's drawing card

Published:Tuesday | June 5, 2012 | 12:00 AM
The Sagicor building, home of Supreme Ventures Limited (SVL) on Grenada Crescent, New Kingston. SVL is to be relocated to downtown Kingston.-Ricardo Makyn/Staff Photographer
A motorcyclist rides past the future home of Supreme Ventures at the intersection of Harbour and Gold streets in downtown Kingston yesterday.-Norman Grindley/Chief Photographer

COMPANIES SUCH as Supreme Ventures and Digicel, which have decided to establish their headquarters in downtown Kingston, will enjoy several tax breaks.

In September of 2009, Cabinet decided on initiatives to revive downtown Kingston.

These took the form of amendments to the Urban Renewal Tax Relief Act and were passed into law effective December 31, 2010.

Provisions regarding group headquarters were also implemented with amendments to the Income Tax Act.

Already, persons who set up shop in downtown Kingston can benefit from a tax incentive programme, which includes 33.3 per cent tax credit on capital sums invested in developments.

Approved developers can also enjoy full relief from tax on any rental or lease income from improved property and exemption from transfer tax and stamp duty.

The Tax Incentive Programme (TIP) is an initiative by the Government to encourage and facilitate development in urban areas defined as "blighted" or in need of revitalisation.

Through the TIP, the Government gives tax relief as an incentive to individuals or companies undertaking capital investments in either land or buildings in social development areas.

The programme is consistent with the Government's policy to provide opportunities to enable private-sector entities to become full participants in the country's development thrust.

It focuses on attracting private investment capital to fuel urban renewal and growth.

There are four types of incentives: Urban Renewal Bonds, Investment Tax Credit, Tax Relief on Rental Income and Exemption from Transfer Tax and Stamp Duty.

Application forms for the TIP can be collected at the Urban Development Corporation.