The signing took place at the Ministry of Finance and Public Service's Heroes Circle offices in Kingston yesterday.
Portfolio Minister, Audley Shaw, said the agreement seeks to advance trade and investment relations between the countries.
“On behalf of the Government of Jamaica, I confirm our commitment to meeting international standards for transparency in tax matters, in light of the vast opportunities for investment and trade, which may be realised within a proper, transparent and legal framework,” Shaw said.
He noted that the agreement holds significant benefit for Italian investors, such as Gruppo Campari, a major player in the global spirits industry, which is making a valuable contribution to the country's economic growth and development, through high levels of employment of Jamaicans.
Shaw pointed out that given the considerable interest that Italy has shown in Jamaica's specialty products, namely coffee, rum and spirits, business interests should take the opportunity to encourage Italian buyers to expand demand, while exploring any commercial interest in other branded products such as spices and niche items.
Double taxation is the levying of tax by two or more jurisdictions on the same declared income asset or financial transaction.
The agreement signed between Jamaica and Italy will require that the Italian government acknowledge the payment of taxes in Jamaica, in determining what is required to be paid by Italian companies which operate locally, to their home country.
“This is about transparency and having everything above board; so there is no misunderstanding,” the Minister pointed out.
Ambassador of the Republic of Italy to Jamaica, Armando Varracchio, said the agreement will improve the business environment and provide a key asset for companies that want to expand operations in Italy and Jamaica.
“This agreement will certainly provide the fiscal conditions for sound investment and trade and those things help us promote capital inflow and expand foreign trade in our respective countries,” he noted.
Varracchio said he expects that more Italian companies, including those operating in the tourism sector, will follow the example set by Campari Group and look at Jamaica as a regional hub for their brands.
Jamaica and Italy signed an Economic Cooperation agreement in 1987, and have cooperated on a number of activities, primarily in the areas of healthcare.
- Countries: Jamaica