JCSD ‘Raising the Platform’ for Secondary Bond Market

• The Jamaica Central Securities Depository (JCSD) subsidiary of the Jamaica Stock Exchange, in association with the Tax Administration Jamaica (TAJ) and the Jamaica Securities Dealers Association (JSDA) recently launched a withholding tax certification solution for retail, non-prescribed investors. The solution gives easier access to withholding tax certificates on the TAJ RAIS platform allowing bondholders to reclaim withholding tax on interest paid.
• Previously, retail bondholders couldn’t re-coup tax on interest paid on bonds from the secondary market, while Prescribed institutional Investors could. Additionally, retail investors paid gross interest to acquire the bond. The solution will now enable retail investors to pay net of withholding tax.
• This development will reduce the purchase costs of bonds for retail investors, while also reducing the need for brokers to absorb the costs of withholding tax from investors who cannot reclaim withholding taxes paid on purchases made on the secondary market. This solution applies to bonds under the management of the JCSD and JCSDTS.

(Source: JSE)