Doing Business 2018 Jamaica Economy Pro le of Jamaica Doing Business 2018 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction Procedures, time and cost to complete all formalities to build a warehouse and the quality control and permits safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-filing processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Labor market regulation Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. Page 2   for insolvency Doing Business Labor market 2018 regulation Jamaica Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to two decimals. More about Doing Business (PDF, 5MB) Ease of Doing Business in Latin America & DB 2018 Rank Region 190 1 Caribbean Jamaica Income Category Upper middle income 70 DB 2018 Distance to Frontier (DTF) Population 2,881,355 0 100 GNI Per Capita (US$) 4,660 67.27 City Covered Kingston DB 2018 Distance to Frontier (DTF) 0 100 68.85: Puerto Rico (U.S.) (Rank: 64) 67.27: Jamaica (Rank: 70) 59.63: Antigua and Barbuda (Rank: 107) 58.66: Regional Average (Latin America & Caribbean) 54.52: St. Kitts and Nevis (Rank: 134) Page 3   aggregate distance to frontier scores, rounded to two decimals. More Doingabout 2018 (PDF, Doing Business Business 5MB) Jamaica Ease of Doing Business in Latin America & DB 2018 Rank Region 190 1 Caribbean Jamaica Income Category Upper middle income 70 DB 2018 Distance to Frontier (DTF) Population 2,881,355 0 100 GNI Per Capita (US$) 4,660 67.27 City Covered Kingston DB 2018 Distance to Frontier (DTF) 0 100 68.85: Puerto Rico (U.S.) (Rank: 64) 67.27: Jamaica (Rank: 70) 59.63: Antigua and Barbuda (Rank: 107) 58.66: Regional Average (Latin America & Caribbean) 54.52: St. Kitts and Nevis (Rank: 134) 52.94: Grenada (Rank: 142) Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Jamaica 5 1 20 28 35 55 81 82 91 98 Rank 109 122 128 130 127 136 163 190 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Distance to Frontier (DTF) on Doing Business topics - Jamaica 97.30 100 80.00 80 71.11 69.31 67.22 65.67 61.54 60 53.70 55.00 DTF 51.87 40 20 0 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+3.11 Change:0.00 Change:0.00 Investors Change:0.00 Borders Change:-0.08 Change:+0.16 Change:+1.69 Permits Change:0.00 Change:+0.84 Change:0.00 Starting a Business Page 4   a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+3.11 Change:0.00 Change:0.00 Investors Change:0.00 Borders Change:-0.08 Change:+0.16 Change:+1.69 Permits Change:0.00 Change:+0.84 Doing Business 2018 Jamaica Change:0.00 Starting a Business This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited liability company to start up and formally operate in economy’s largest business city. To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and operate a To make the data comparable across economies, several assumptions company (number) about the business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay Pre-registration (for example, name verification no bribes. or reservation, notarization) Registration in economy’s largest business city The business: - Is a limited liability company (or its legal equivalent). If there is more than Post-registration (for example, social security one type of limited liability company in the economy, the most common registration, company seal) among domestic rms is chosen. Information on the most common form is Obtaining approval from spouse to start business obtained from incorporation lawyers or the statistical o ce. or leave home to register company - Operates in the economy’s largest business city and the entire o ce Obtaining any gender-specific permission that space is approximately 929 square meters (10,000 square feet). For 11 can impact company registration, company economies the data are also collected for the second largest business city. operations and process of getting national - Is 100% domestically owned and has ve owners, none of whom is a legal identity card entity; and has a start-up capital of 10 times income per capita and has a Time required to complete each procedure turnover of at least 100 times income per capita. (calendar days) - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does Does not include time spent gathering not perform foreign trade activities and does not handle products subject information to a special tax regime, for example, liquor or tobacco. It does not use Each procedure starts on a separate day (2 heavily polluting production processes. procedures cannot start on the same day) - Leases the commercial plant or o ces and is not a proprietor of real Procedures fully completed online are recorded estate and the amount of the annual lease for the o ce space is equivalent as ½ day to 1 times income per capita. Procedure is considered completed once final - Does not qualify for investment incentives or any special bene ts. document is received - Has at least 10 and up to 50 employees one month after the commencement of operations, all of whom are domestic nationals. No prior contact with officials - Has a company deed 10 pages long. Cost required to complete each procedure (% of The owners: income per capita) - Have reached the legal age of majority. If there is no legal age of majority, Official costs only, no bribes they are assumed to be 30 years old. No professional fees unless services required by - Are sane, competent, in good health and have no criminal record. law or commonly used in practice - Are married and the marriage is monogamous and registered with the authorities. Paid-in minimum capital (% of income per capita) - Where the answer di ers according to the legal system applicable to the Funds deposited in a bank or with third party woman or man in question (as may be the case in economies where there before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Standardized Company Page 5   before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Doing Business 2018 Jamaica Standardized Company Legal form Private Limited Liability Company Paid-in minimum capital requirement JMD 0 City Covered Kingston Latin America & OECD high Indicator Jamaica Caribbean income Overall Best Performer Procedure – Men (number) 2 8.4 4.9 1.00 (New Zealand) Time – Men (days) 3 31.7 8.5 0.50 (New Zealand) Cost – Men (% of income per capita) 4.8 37.5 3.1 0.00 (United Kingdom) Procedure – Women (number) 2 8.5 4.9 1.00 (New Zealand) Time – Women (days) 3 31.8 8.5 0.50 (New Zealand) Cost – Women (% of income per capita) 4.8 37.5 3.1 0.00 (United Kingdom) Paid-in min. capital (% of income per capita) 0.0 2.1 8.7 0.00 (113 Economies) Figure – Starting a Business in Jamaica and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 97.30: Jamaica (Rank: 5) 91.29: Puerto Rico (U.S.) (Rank: 47) 87.09: Grenada (Rank: 82) 85.76: St. Kitts and Nevis (Rank: 91) 81.69: Antigua and Barbuda (Rank: 126) 78.09: Regional Average (Latin America & Caribbean) Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Starting a Business in Jamaica – Procedure, Time and Cost Time Cost 3 5 2.5 4 ost (% of income per capita) 2 Time (days) 3 1.5 2 1 Page 6   starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Jamaica Figure – Starting a Business in Jamaica – Procedure, Time and Cost Time Cost 3 5 2.5 4 Cost (% of income per capita) 2 Time (days) 3 1.5 2 1 1 0.5 0 0 1 2 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Details – Starting a Business in Jamaica – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Ascertain from the Registrar of Companies whether the desired name is 1 day JMD 500 available and acceptable Agency : Companies O ce of Jamaica The proposed company les a Form 6 - Name Search and Name Reservation with the Companies O ce of Jamaica to ascertain the availability of the name at a cost of JMD 500. It is also recommended that a name reservation be done for an additional JMD 3,000 to reserve the name for 90 days. 2 File the Article of Incorporation and Business Registration Form with the 2 days for next day see procedure Companies Registry O ce service details Agency : Companies O ce of Jamaica Since January 1, 2014 entrepreneurs are no longer required to submit forms separately to the National Insurance Scheme (NIS), Taxpayer Registration Number (TRN) and General Consumption Tax (GCT). These registrations are now subsumed under the Business Registration Form. Thus, only two forms are required, the Article of Incorporation form and the Business Registration Form. Cost details: JMD 24,000 (registration fee) + JMD 500 for stamp duty + 3,000 (next day processing) Applies to women only. Takes place simultaneously with previous procedure. Page 7   (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Doing Business 2018 Jamaica Details – Starting a Business in Jamaica – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Ascertain from the Registrar of Companies whether the desired name is 1 day JMD 500 available and acceptable Agency : Companies O ce of Jamaica The proposed company les a Form 6 - Name Search and Name Reservation with the Companies O ce of Jamaica to ascertain the availability of the name at a cost of JMD 500. It is also recommended that a name reservation be done for an additional JMD 3,000 to reserve the name for 90 days. 2 File the Article of Incorporation and Business Registration Form with the 2 days for next day see procedure Companies Registry O ce service details Agency : Companies O ce of Jamaica Since January 1, 2014 entrepreneurs are no longer required to submit forms separately to the National Insurance Scheme (NIS), Taxpayer Registration Number (TRN) and General Consumption Tax (GCT). These registrations are now subsumed under the Business Registration Form. Thus, only two forms are required, the Article of Incorporation form and the Business Registration Form. Cost details: JMD 24,000 (registration fee) + JMD 500 for stamp duty + 3,000 (next day processing) Applies to women only. Takes place simultaneously with previous procedure. Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the Page 8   warehouse upon its completion. Does not include time spent gathering Applies to women only. Takes place simultaneously with previous procedure. Doing Business 2018 Jamaica Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information The warehouse: Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or though procedures that can be fully completed stationery. online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of - Will have complete architectural and technical plans prepared by a warehouse value) licensed architect. If preparation of the plans requires such steps as Official costs only, no bribes obtaining further documentation or getting prior approvals from external Building quality control index (0-15) agencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrative Sum of the scores of six component indices: and regulatory requirements). Quality of building regulations (0-2) The water and sewerage connections: Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer Quality control during construction (0-3) tap. If there is no water delivery infrastructure in the economy, a borehole Quality control after construction (0-3) will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. Liability and insurance regimes (0-2) - Will have an average water use of 662 liters (175 gallons) a day and an Professional certifications (0-4) average wastewater ow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater ow of 1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater ow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Standardized Warehouse Page 9   and 4 inches in diameter for the sewerage connection. Doing Business 2018 Jamaica Standardized Warehouse Estimated value of warehouse JMD 29,292,274.70 City Covered Kingston Latin America & OECD high Indicator Jamaica Caribbean income Overall Best Performer Procedures (number) 19 15.7 12.5 7.00 (Denmark) Time (days) 141.5 191.8 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 1.7 3.2 1.6 0.10 (5 Economies) Building quality control index (0-15) 10.0 8.8 11.4 15.00 (3 Economies) Figure – Dealing with Construction Permits in Jamaica and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 76.27: St. Kitts and Nevis (Rank: 33) 67.22: Jamaica (Rank: 98) 67.09: Antigua and Barbuda (Rank: 99) 63.59: Regional Average (Latin America & Caribbean) 62.22: Grenada (Rank: 128) 60.17: Puerto Rico (U.S.) (Rank: 138) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Dealing with Construction Permits in Jamaica – Procedure, Time and Cost Time Cost 140 0.7 120 0.6 Cost (% of warehouse value) 100 0.5 Time (days) 80 0.4 60 0.3 40 0.2 20 0.1 0 0 1 *2 *3 *4 *5 *6 *7 8 *9 10 11 12 13 14 15 16 17 18 19 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 10   component indicators. Doing Business 2018 Jamaica Figure – Dealing with Construction Permits in Jamaica – Procedure, Time and Cost Time Cost 140 0.7 120 0.6 Cost (% of warehouse value) 100 0.5 Time (days) 80 0.4 60 0.3 40 0.2 20 0.1 0 0 1 *2 *3 *4 *5 *6 *7 8 *9 10 11 12 13 14 15 16 17 18 19 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Dealing with Construction Permits in Jamaica and comparator economies – Measure of Quality 14 12.0 12 10.0 10 9.0 8.8 Index score 8.0 8 6 5.0 4 2 0 Jamaica Antigua and Barbuda Grenada Puerto Rico (U.S.) St. Kitts and Nevis Latin America & Caribbean Details – Dealing with Construction Permits in Jamaica – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain a certi ed copy of the property title 1 day JMD 1,000 Agency : Jamaican Land Registry One of the requirements to obtain a building permit is to provide a proof of ownership. This document must be a certi ed copy of the property title. 2 Obtain a soil test study 25 days JMD 150,000 Agency : Private rm Based on The Kingston and St. Andrews Building Act LN/42/1995, a soil test is required for the foundation of a warehouse. 3 Obtain results of topographical survey 25 days JMD 100,000 Page 11   Jamaica Antigua and Barbuda Grenada Puerto Rico (U.S.) St. Kitts and Nevis Latin America & Caribbean Doing Business 2018 Jamaica Details – Dealing with Construction Permits in Jamaica – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain a certi ed copy of the property title 1 day JMD 1,000 Agency : Jamaican Land Registry One of the requirements to obtain a building permit is to provide a proof of ownership. This document must be a certi ed copy of the property title. 2 Obtain a soil test study 25 days JMD 150,000 Agency : Private rm Based on The Kingston and St. Andrews Building Act LN/42/1995, a soil test is required for the foundation of a warehouse. 3 Obtain results of topographical survey 25 days JMD 100,000 Agency : Private/ commissioned land surveyor A topographical survey is required for the site plan, which is one of the requirement to obtain a building permit (Article 25 of the Building Act of Kingston and St. Andrews). The Site plan must show the contour lines for Gradient 15 degrees (1:4) and over where the land is susceptible to ooding and landslide (existing land contours at a maximum of 3m increments or as required by your Local Planning Authority). The certi ed property title is needed to obtain this survey. 4 Hold pre-application consultation/facilitation meeting with DAC 14 days no charge Agency : Development Assistance Centre Development Assistance Centre (DAC) now assists in pre-Application evaluation and gives guidance on the technical requirements that will support the application. The DAC may also call meetings between all of the relevant government agencies to allow them to review and provide guidance and comments. The response will include an indication of any potential issues identi ed and a Technical Information Document (TID) which details the relevant guidelines that are to be followed to streamline and process the application. Once the pre-consultation has been done and the TID provided, the applicant is then advised to use the guidance to formalize the project, the DAC also o ers to review the resultant application and submission for completeness prior to submission. Once satis ed the application is submitted in to the Development Application Review Process. 5 Obtain a property tax certi cate 1 day no charge Agency : Tax Administration Jamaica : It is now a mandatory requirement when applying for a building permit to also submit a property Tax certi cate to show that the owner is up to date with all property taxes. The owner will go to the ax authority with all the property tax receipts and request a certi cate showing that there are no outstanding property tax to be paid. 6 Obtain sewage permit to connect to public sewage 7 days JMD 5,000 Agency : National Water Commission Before a formal application for the building permit can be submitted, it is important to obtain a sewage permit. This will show that both water and sewage are available in this area. The architect/engineer must show how the connection to sewage will be done and this plan will be approved by NWC. Page 12   property tax receipts and request a certi cate showing that there are no Doing outstanding tax to be paid. propertyJamaica Business 2018 6 Obtain sewage permit to connect to public sewage 7 days JMD 5,000 Agency : National Water Commission Before a formal application for the building permit can be submitted, it is important to obtain a sewage permit. This will show that both water and sewage are available in this area. The architect/engineer must show how the connection to sewage will be done and this plan will be approved by NWC. When the certi cate letter is obtained, there is a fee of JMD 5000 to be paid. 7 Obtain re approval certi cate 7 days JMD 4,000 Agency : Jamaica Fire Brigade Before a formal application for the building permit can be submitted, it is important to obtain a clearance certi cate from the Fire Brigade. 8 Obtain approval of building plans by KSAC 90 days JMD 181,078 Agency : Municipal Authority (KSAC) Kingston & St. Andrew Corporation BuildCo must obtain approval of building plans from the Planning Authority, the Fire Department, the National Environment and Planning Agency (NEPA), and other authorities concerned. Several documents are required to obtain this approval, including a property title and proof of ownership. Approval is valid for 2 years and can be renewed. To obtain approval, BuildCo les the drawings with the municipality. Four meetings are held to review the drawings: • Fire • Health • Road • A general meeting after all others are completed and NEPA approval is received Each meeting has a set date, normally one per week sequentially. If there is a holiday, the meeting will be postponed. If BuildCo misses a meeting, the whole process will be prolonged. 9 Obtain approval from the National Environment and Planning Agency 20 days JMD 2,000 (NEPA) Agency : National Environmental Protection Agency Meanwhile, BuildCo les the same document with the National Environment and Planning Agency (NEPA) for approval of the plans. In simple cases, the approval takes 10 workings days. In complicated cases, an environmental impact assessment is required and approval might take much longer. BuildCo les NEPA's approval with the municipality. 10 Notify the Municipality of the commencement of work 1 day no charge Agency : Municipal Authority (KSAC) Kingston & St. Andrew Corporation BuildCo must inform the Municipal Authority (KSAC) Kingston & St. Andrew Corporation when the construction work will start. 11 Request and receive excavation inspection from KSAC 1 day no charge Agency : Municipal Authority (KSAC) Kingston & St. Andrew Corporation BuildCo sends a written noti cation enclosed with the project approval number to the building authority 3 days in advance of the excavation inspection. If the inspector comes on schedule, construction work does not have to stop. 12 Request and receive foundation steel inspection from KSAC 1 day no charge Page 13   BuildCo must inform the Municipal Authority (KSAC) Kingston & St. Andrew Doing Corporation when the Business 2018 construction work will start. Jamaica 11 Request and receive excavation inspection from KSAC 1 day no charge Agency : Municipal Authority (KSAC) Kingston & St. Andrew Corporation BuildCo sends a written noti cation enclosed with the project approval number to the building authority 3 days in advance of the excavation inspection. If the inspector comes on schedule, construction work does not have to stop. 12 Request and receive foundation steel inspection from KSAC 1 day no charge Agency : Municipal Authority (KSAC) Kingston & St. Andrew Corporation 13 Request and receive beam and roof inspection 1 day no charge Agency : Municipal Authority (KSAC) Kingston & St. Andrew Corporation 14 Request and receive inspection by the Fire Brigade 1 day no charge Agency : Jamaica Fire Brigade The Jamaica Fire Brigade will conduct an inspection of the warehouse to ensure that reasonable steps are taken for the prevention of re and for protection against the dangers of re. This is a pre-condition to requesting the nal inspection by the Building Control Department. 15 Request and receive inspection by the Ministry of Environmental Health 1 day no charge Agency : Ministry of Environmental Health An inspection by the Ministry of Environmental Health stating that the building is in compliance with the environmental health standards is a prerequisite to requesting the nal inspection by the Building Control Department. 16 Request and receive nal inspection 1 day no charge Agency : Building Control Department BuildCo must submit a completion form and send to the Building Control Department to receive the nal inspection once the Jamaica Fire Brigade and the Ministry of Environmental Health have both inspected the building. It will be the responsibility of the architect and engineer to issue the certi cate of compliance once the nal inspection is over. 17 Apply for water and sewage connection 0.5 days no charge Agency : National Water Commission Updated requirements for obtaining water and sewage connections were issued by the National Water Commission (NWC) in May 2011. It is necessary to make a deposit when applying for the connection - the amount depends on whether or not the layout of the pipes are conducted by a private contractor or by NWC. 18 Receive inspection from the National Water Commission to assess the 1 day no charge cost of connection Agency : National Water Commission 19 Obtain water and sewage connection 16 days JMD 55,000 Agency : National Water Commission Takes place simultaneously with previous procedure. Page 14   place simultaneously Takes Business Doing with previous procedure. 2018 Jamaica Details – Dealing with Construction Permits in Jamaica – Measure of Quality Answer Score Building quality control index (0-15) 10.0 Quality of building regulations index (0-2) 1.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 0.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect; Licensed engineer. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during Inspections at 2.0 construction? (0-2) various phases; Risk-based inspections. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 0.0 inspections are not always done in practice during construction; Mandatory inspections are done most of the time during construction. Quality control after construction index (0-3) 2.0 Is there a nal inspection required by law to verify that the building was built in Yes, nal 2.0 accordance with the approved plans and regulations? (0-2) inspection is done by government agency. Do legally mandated nal inspections occur in practice? (0-1) Final inspection 0.0 does not always occur in practice; Final inspection occurs most of the time. Liability and insurance regimes index (0-2) 1.0 Page 15   Takes place simultaneously with previous procedure. Doing Business 2018 Jamaica Details – Dealing with Construction Permits in Jamaica – Measure of Quality Answer Score Building quality control index (0-15) 10.0 Quality of building regulations index (0-2) 1.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 0.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect; Licensed engineer. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during Inspections at 2.0 construction? (0-2) various phases; Risk-based inspections. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 0.0 inspections are not always done in practice during construction; Mandatory inspections are done most of the time during construction. Quality control after construction index (0-3) 2.0 Is there a nal inspection required by law to verify that the building was built in Yes, nal 2.0 accordance with the approved plans and regulations? (0-2) inspection is done by government agency. Do legally mandated nal inspections occur in practice? (0-1) Final inspection 0.0 does not always occur in practice; Final inspection occurs most of the time. Liability and insurance regimes index (0-2) 1.0 Page 16   Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 occurs most of Doing Business 2018 Jamaica the time. Liability and insurance regimes index (0-2) 1.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Professional in charge of the supervision; Construction company. Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0 possible structural aws or problems in the building once it is in use (Latent Defect required by law Liability Insurance or Decennial Insurance)? (0-1) to obtain insurance . Professional certi cations index (0-4) 3.0 What are the quali cation requirements for the professional responsible for verifying University 1.0 that the architectural plans or drawings are in compliance with existing building degree in regulations? (0-2) architecture or engineering; Being a registered architect or engineer. What are the quali cation requirements for the professional who supervises the Minimum 2.0 construction on the ground? (0-2) number of years of experience; University degree in engineering, construction or construction management; Being a registered architect or engineer. Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Page 17   Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is architect or engineer. Doing Business 2018 Jamaica Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 Is at least 1 calendar day square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, Reflects the time spent in practice, with little when 1 kVA = 1 kilowatt (kW). follow-up and no prior contact with officials - Has a length of 150 meters. The connection is to either the low- or Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or income per capita) underground, whichever is more common in the area where the warehouse is located and requires works that involve the crossing of a 10- Official costs only, no bribes meter road (such as by excavation or overhead lines) but are all carried out Value added tax excluded on public land. There is no crossing of other owners’ private property The reliability of supply and transparency of because the warehouse has access to a road. tari s index (0-8) - Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service Duration and frequency of power outages (0–3) panel or switchboard and the meter base. Tools to monitor power outages (0–1) Tools to restore power supply (0–1) The monthly consumption: Regulatory monitoring of utilities’ performance - It is assumed that the warehouse operates 30 days a month from 9:00 (0–1) a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity Financial deterrents limiting outages (0–1) on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours Transparency and accessibility of tariffs (0–1) (kWh); hourly consumption is 112 kWh. Price of electricity (cents per kilowatt-hour)* - If multiple electricity suppliers exist, the warehouse is served by the Price based on monthly bill for commercial cheapest supplier. warehouse in case study - Tari s e ective in March of the current year are used for calculation of the price of electricity for the warehouse. Although March has 31 days, for * N o t e : Doing Business m e a s u r e s t h e p r i c e o f calculation purposes only 30 days are used. electricity, but it is not included in the distance to frontier score nor the ranking on the ease of getting electricity. Page 18   Standardized Connection frontier score nor the ranking on the ease of getting electricity. Doing Business 2018 Jamaica Standardized Connection Price of electricity (US cents per kWh) 23.3 Name of utility Jamaica Public Service Co. Ltd. City Covered Kingston Latin America & OECD high Indicator Jamaica Caribbean income Overall Best Performer Procedures (number) 7 5.5 4.7 2 (United Arab Emirates) Time (days) 95 66.0 79.1 10 (United Arab Emirates) Cost (% of income per capita) 237.3 927.4 63.0 0.00 (Japan) Reliability of supply and transparency of tariff 7 4.2 7.4 8.00 (28 Economies) index (0-8) Figure – Getting Electricity in Jamaica and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 83.50: Antigua and Barbuda (Rank: 39) 76.94: Puerto Rico (U.S.) (Rank: 69) 76.41: Grenada (Rank: 73) 71.11: Jamaica (Rank: 91) 70.45: Regional Average (Latin America & Caribbean) 70.10: St. Kitts and Nevis (Rank: 94) Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Getting Electricity in Jamaica – Procedure, Time and Cost Time Cost 250 90 80 200 Cost (% of income per capita) 70 60 Time (days) 150 50 40 100 30 20 50 10 Page 19   getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Jamaica Figure – Getting Electricity in Jamaica – Procedure, Time and Cost Time Cost 250 90 80 200 Cost (% of income per capita) 70 60 Time (days) 150 50 40 100 30 20 50 10 0 0 1 2 3 *4 5 6 7 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Getting Electricity in Jamaica and comparator economies – Measure of Quality 8 7 7 6 5 Index score 5 4.2 4 4 4 3 2 1 0 0 Jamaica Antigua and Barbuda Grenada Puerto Rico (U.S.) St. Kitts and Nevis Latin America & Caribbean Details – Getting Electricity in Jamaica – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit electrical design to Government Electrical Inspector (GEI) for 7 calendar days JMD 0 approval Agency : Government Electrical Inspectorate 2 Electrical contractor applies for Govt. of Jamaica Electrical Dept (GEI) 1 calendar day JMD 16,000 Inspection Certi cate Agency : The Govt. of Jamaica Electrical Dept. (GEI) o ces When the service order is generated, the parish o ce is informed and a team dispatched to conduct site visit which includes easement needed to ensure that construction process will not be held up and time and other resources are not spent unnecessarily. The ndings from the inspection will Page 20   Jamaica Antigua and Barbuda Grenada Puerto Rico (U.S.) St. Kitts and Nevis Latin America & Caribbean Doing Business 2018 Jamaica Details – Getting Electricity in Jamaica – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit electrical design to Government Electrical Inspector (GEI) for 7 calendar days JMD 0 approval Agency : Government Electrical Inspectorate 2 Electrical contractor applies for Govt. of Jamaica Electrical Dept (GEI) 1 calendar day JMD 16,000 Inspection Certi cate Agency : The Govt. of Jamaica Electrical Dept. (GEI) o ces When the service order is generated, the parish o ce is informed and a team dispatched to conduct site visit which includes easement needed to ensure that construction process will not be held up and time and other resources are not spent unnecessarily. The ndings from the inspection will be entered into a database that has prede ned measurements based on the regular, current and projected factors that facilitate the successful completion of any particular job. The result will determine the nal cost. Via Registered Licensed Electrician, the relevant inspection fees are paid at the Government Collectorate O ce. Payment receipt accompanied with the relevant application forms are submitted to GEI's o ce for review and site inspection. Inspection is scheduled with the Electrician (normally done within 2 weeks). 3 Receive internal wiring inspection by GEI and await preparation of 21 calendar days JMD 0 report Agency : The Govt. of Jamaica Electrical Dept. (GEI) o ces The inspector conducts the internal wiring inspection based on the Jamaican 21 standard. If the customer premises structure of internal wiring used is accepted, the record of the inspection and results is recorded and the relevant information based on size, type and location of customer premises is sent to JPS. In cases where the internal wiring is not accepted, the customer is informed and has to restart the process. 4 Submit application to JPSCo and await site visit 7 calendar days JMD 0 Agency : Jamaica Public Service Company At the Application stage, applicants are only required to submit an application letter stating the following: Name & Contact details, address where service is required, when service is required, load details of major equipment, to be used in new/expanded facility - rating in kilovolt amperes (kVA) or ampere (A) units. Also where applicable, the applicant should state details of load balancing for a 3 phase supply ( a single line drawing and copies of GEI Report/Certi cate is normally accepted, but is not a requirement at this stage of the process). 5 Receive site inspection by JPSCo and await estimate 10 calendar days JMD 0 Agency : Jamaica Public Service Company When the service order is generated, the Engineering Team is informed in the case of complex connections to conduct a site visit. The site visit is conducted to determine the site layout and the requirements that will have to be met to supply the customer with electricity. Requirements include number of poles, transformers, length of conductor among other items that will be needed. A drawing is prepared of the site layout, to outline to the Easement team, any situations that may require legal action or reference Page 21   and the reasoning behind such action; as well as the Construction Team, to copies of GEI Report/Certi cate is normally accepted, but is not a Doing requirement Business 2018at this stage of the process). Jamaica 5 Receive site inspection by JPSCo and await estimate 10 calendar days JMD 0 Agency : Jamaica Public Service Company When the service order is generated, the Engineering Team is informed in the case of complex connections to conduct a site visit. The site visit is conducted to determine the site layout and the requirements that will have to be met to supply the customer with electricity. Requirements include number of poles, transformers, length of conductor among other items that will be needed. A drawing is prepared of the site layout, to outline to the Easement team, any situations that may require legal action or reference and the reasoning behind such action; as well as the Construction Team, to facilitate the successful execution of the development process. The ndings from the site visit will be entered into an application that has prede ned measurements based on the regular, current and projected factors that facilitate the successful completion of any particular job. The result will determine the nal estimate. This cost is communicated to the customer. [This particular case is not considered as such to warrant the inclusion of easement costs in total estimate, but in a many cases, a provision is made for such costs when an electrical equipment other than a service wire may need to be placed on a customer's or connecting customer's premises to successfully execute the construction process]. In short, the process is as below: 1. Engineering team conducts site inspection and determines site layout and other requirements to meet customer's supply needs. 2. A drawing of the site layout is prepared and easement requirements noted, where necessary. 3. Estimate re ecting the costs for material and labour is prepared. 4. This cost is communicated to the customer. 6 Purchase material and obtain external works from electrician 7 calendar days JMD 250,000 Agency : Electrical Contractor There is some external connection works which the customer needs to do, This is basically the external wiring up to point of connection provided by utility, a panel board, switchboard, and cables. 7 Receive external works, meter installation and electricity ow from 49 calendar days JMD 1,124,368.14 utility Agency : Jamaica Public Service Company 1. Once the customer pays the construction estimate, JPS carries out the necessary construction works and external connections. 2. JPS invites the GEI to inspect and certify works completed. 3. It is at this stage that GEI certi cation for the customer facility is also required. Such certi cation is normally submitted directly to JPS from the GEI's O ce. 4. Upon con rmation of GEI certi cation for both the customer's facility and JPS works carried out, the customer is asked to pay the security deposit and provide any other outstanding documentation to complete the supply contract. 5. Customer signs contract, meter is installed and electricity starts owing. Takes place simultaneously with previous procedure. Details – Getting Electricity in Jamaica – Measure of Quality Page 22   Answer Takes place simultaneously with previous procedure. Doing Business 2018 Jamaica Details – Getting Electricity in Jamaica – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 7 Total duration and frequency of outages per customer a year (0-3) 2 System average interruption duration index (SAIDI) 1.5 System average interruption frequency index (SAIFI) 1.2 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 5.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 1 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages Yes exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Link to the website, if available online https://www.jpsco.co m/wp- content/uploads/JPS -RateSchedule- 2015.pdf Are customers noti ed of a change in tari ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tari index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Page 23   If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Doing Business 2018 Jamaica Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on immovable To make the data comparable across economies, several assumptions property (number) about the parties to the transaction, the property and the procedures are used. Preregistration procedures (for example, checking for liens, notarizing sales agreement, The parties (buyer and seller): paying property transfer taxes) - Are limited liability companies (or the legal equivalent). Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. business citya. For 11 economies the data are also collected for the second largest Postregistration procedures (for example, filling business city. title with municipality) - Are 100% domestically and privately owned. Time required to complete each procedure - Have 50 employees each, all of whom are nationals. (calendar days) - Perform general commercial activities. Does not include time spent gathering information The property (fully owned by the seller): - Has a value of 50 times income per capita, which equals the sale price. Each procedure starts on a separate day - though - Is fully owned by the seller. procedures that can be fully completed online - Has no mortgages attached and has been under the same ownership for are an exception to this rule the past 10 years. Procedure is considered completed once final - Is registered in the land registry or cadastre, or both, and is free of title document is received disputes. No prior contact with officials - Is located in a periurban commercial zone, and no rezoning is required. Cost required to complete each procedure (% of - Consists of land and a building. The land area is 557.4 square meters property value) (6,000 square feet). A two-story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in Official costs only (such as administrative fees, good condition, has no heating system and complies with all safety duties and taxes). standards, building codes and legal requirements. The property, Value Added Tax, Capital Gains Tax and illicit consisting of land and building, will be transferred in its entirety. payments are excluded - Will not be subject to renovations or additional construction following the Quality of land administration index (0-30) purchase. - Has no trees, natural water sources, natural reserves or historical Reliability of infrastructure index (0-8) monuments of any kind. Transparency of information index (0–6) - Will not be used for special purposes, and no special permits, such as for Geographic coverage index (0–8) residential use, industrial plants, waste storage or certain types of agricultural activities, are required. Land dispute resolution index (0–8) - Has no occupants, and no other party holds a legal interest in it. Equal access to property rights index (-2–0) Standard Property Transfer Property value JMD 29,292,274.70 City Covered Kingston Page 24   Latin America & OECD high Doing Business 2018 Jamaica Standard Property Transfer Property value JMD 29,292,274.70 City Covered Kingston Latin America & OECD high Indicator Jamaica Caribbean income Overall Best Performer Procedures (number) 8 7.2 4.6 1.00 (4 Economies) Time (days) 18 63.3 22.3 1.00 (3 Economies) Cost (% of property value) 9.8 5.8 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 14.0 12.0 22.7 29.00 (Singapore) Figure – Registering Property in Jamaica and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 56.61: Antigua and Barbuda (Rank: 118) 55.36: Regional Average (Latin America & Caribbean) 53.70: Jamaica (Rank: 128) 50.15: Grenada (Rank: 141) 47.19: Puerto Rico (U.S.) (Rank: 153) 28.80: St. Kitts and Nevis (Rank: 184) Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Registering Property in Jamaica – Procedure, Time and Cost Time Cost 18 10 16 8 14 Cost (% of property value) 12 Time (days) 6 10 8 4 6 4 2 2 0 0 1 *2 3 4 *5 6 7 8 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 25   Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Jamaica Figure – Registering Property in Jamaica – Procedure, Time and Cost Time Cost 18 10 16 8 14 Cost (% of property value) 12 Time (days) 6 10 8 4 6 4 2 2 0 0 1 *2 3 4 *5 6 7 8 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Registering Property in Jamaica and comparator economies – Measure of Quality 20 19.0 18 16 14.0 13.5 14 12.0 Index score 12 10 9.0 8 7.0 6 4 2 0 Jamaica Antigua and Barbuda Grenada Puerto Rico (U.S.) St. Kitts and Nevis Latin America & Caribbean Details – Registering Property in Jamaica – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain a Title Search Certi cate that shows all encumbrances on the Less than a day JMD 500 property at the National Land Agency (online procedure; Agency : National Land Agency simultaneous with procedure 2) Perform a caveat search and title search at the National Land Agency. This title search can be done electronically by the lawyer (for an additional fee) and the cost, by law, is born by the purchaser (Conveyancing Act). The caveat search can now be done online at https://www.elandjamaica.gov.jm 2 Veri cation that the Company is properly registered with the Registrar Less than a day JMD 1,000 of Companies (online procedure; Page 26   Agency : Registrar of Companies simultaneous with Jamaica Antigua and Barbuda Grenada Puerto Rico (U.S.) St. Kitts and Nevis Latin America & Caribbean Doing Business 2018 Jamaica Details – Registering Property in Jamaica – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain a Title Search Certi cate that shows all encumbrances on the Less than a day JMD 500 property at the National Land Agency (online procedure; Agency : National Land Agency simultaneous with procedure 2) Perform a caveat search and title search at the National Land Agency. This title search can be done electronically by the lawyer (for an additional fee) and the cost, by law, is born by the purchaser (Conveyancing Act). The caveat search can now be done online at https://www.elandjamaica.gov.jm 2 Veri cation that the Company is properly registered with the Registrar Less than a day JMD 1,000 of Companies (online procedure; Agency : Registrar of Companies simultaneous with procedure 1) The attorney-at-law submits to the Registrar of Titles a sworn a davit (standard form) that the company is properly registered at the Company registry. Since 2014, the Registrar of Titles does the veri cation and no longer requires the certi cate's submission. However, it is still common practice for attorneys to obtain and submit the document. It is possible to verify if the company is active in http://www.orcjamaica.com/search/viewdocumentsplus.asp 3 Obtain a certi cate of payment of property taxes from the Inland 1 day no cost Revenue Department Agency : Inland Revenue Department The parties need to submit a certi cate of payment of property taxes to obtain the Stamp Commissioner’s certi cate 4 Assessment of tax and duties at the Government Stamp O ce 7 days no cost Agency : Tax Administration Jamaica A signed Agreement for Sale (AFS) is sent for assessment of duties at the Tax Payer Audit & Assessment Department of the National Tax Authority. The documents must have a properly completed Stamping Requisition Form (Form1 – Regulation 3) and Taxpayer Registration Number (TRN) for the applicant and all parties to the transaction. 5 Obtain a Surveyor’s Identi cation Report 7 days JMD 80,000 Agency : Commissioned Land Surveyor (simultaneous with procedure 4) The parties need to obtain a surveyor's identi cation report (SIR) from a commissioned land surveyor. The SIR is not mandated by law, but done in practice for due diligence purposes. The SIR is carried out on a property to determine whether building encroachments have been made on a boundary or neighboring property. The SIR includes the following information about the property: the volume and folio numbers; the lot number and deposit plan number (if any); the physical address and name stated on the property title. The surveyor also states if the boundary is in general agreement with the registered boundary, if the restrictive covenants have been checked and if there are any breaches of these covenants.He also states if there is any evidence of an easement on the property as well as if there are buildings on the property. Mention is made as to the nature of the boundary, whether it is open or the type of fence around the perimeter. The report includes a sketch plan showing the Page 27   property and what unit of measurement is used. (Form1 – Regulation 3) and Taxpayer Registration Number (TRN) for the Doing applicant Business and all parties 2018 to the transaction. Jamaica 5 Obtain a Surveyor’s Identi cation Report 7 days JMD 80,000 Agency : Commissioned Land Surveyor (simultaneous with procedure 4) The parties need to obtain a surveyor's identi cation report (SIR) from a commissioned land surveyor. The SIR is not mandated by law, but done in practice for due diligence purposes. The SIR is carried out on a property to determine whether building encroachments have been made on a boundary or neighboring property. The SIR includes the following information about the property: the volume and folio numbers; the lot number and deposit plan number (if any); the physical address and name stated on the property title. The surveyor also states if the boundary is in general agreement with the registered boundary, if the restrictive covenants have been checked and if there are any breaches of these covenants.He also states if there is any evidence of an easement on the property as well as if there are buildings on the property. Mention is made as to the nature of the boundary, whether it is open or the type of fence around the perimeter. The report includes a sketch plan showing the property and what unit of measurement is used. 6 Attorney witnesses the transfer instrument 1 day No cost if the Agency : Attorneys' O ce attorney or the justice of peace The transfer instrument needs to be witnessed, according to section 152 of witness the transfer. the Registration of Title Act (Attestation of Instrument), by any of the USD 50 if a notary following: the Governor-General, any of the Judges of the Supreme Court, or public witnesses the any Justice of the Peace, or the Registrar under this Act, or a Notary Public, transfer or a Solicitor of the Supreme Court. The instrument of transfer must be witnessed prior to submitting the document to cross stamping, and before submitting for registration at the Land Registry. The Act lists several functionaries including the Justice of the Peace and Attorney of Law and Notary Public. The Notary Public charges a fee but the Justice of Peace does not charge a fee. A notary will charge around 50 USD for this operation. If a lawyer is involved in the entire process, he can act as a witness. 7 Tax and duties are paid at the National Tax authority and the transfer 5 days 5% of property value instrument is crossed-stamped (Transfer Tax) + 4% Agency : Tax Administration Jamaica of property value (Stamp Duty) Payments of Stamp Duty and Transfer Tax may be paid using Cash/Certi ed Manager’s Cheque/Debit or Credit Card/Letter of Undertaking or Bank Guarantee. Once all payments are made, the Transfer Instrument is prepared and witnessed, in accordance to Article 152 of the Registration of Title Act. This Transfer Instrument is then sent for cross-stamping at the Stamp O ce. The stamped Agreement for Sale (AFS) needs to be attached as a proof of payment to the instrument of transfer. Cross stamping is important as the Registrar of Titles will not accept the Transfer Instrument unless it is cross stamped. For all document that must be stamped, a TRN number must be provided. A Transfer Tax Certi cate is obtained which must be submitted to the Registrar of Titles. http://www.jamaicatax.gov.jm/home_template.php? page=StampDutyAndTransferTax#Assess_Collect 8 Apply for registration at the Registrar of Titles 7 days (regular) or 2 0.5% of property Agency : Registrar of Titles/National Land Agency, Land Title Division days (for simple value (registration transfers only-no fee) + JMD 10,000 for The buyer applies for registration of the title under his name at the Registrar mortgages the expediated next- of Titles, which is a division under the National Land Agency. The registration attached, at no day service fee is xed by law at 0.5% of the property value and it is paid at the National extra cost) Page 28   Land Agency. http://www.jamaicatax.gov.jm/home_template.php? Doing page=StampDutyAndTransferTax#Assess_Collect Business 2018 Jamaica 8 Apply for registration at the Registrar of Titles 7 days (regular) or 2 0.5% of property Agency : Registrar of Titles/National Land Agency, Land Title Division days (for simple value (registration transfers only-no fee) + JMD 10,000 for The buyer applies for registration of the title under his name at the Registrar mortgages the expediated next- of Titles, which is a division under the National Land Agency. The registration attached, at no day service fee is xed by law at 0.5% of the property value and it is paid at the National extra cost) Land Agency. Once the transfer is completed then the utility companies must be advised of the change in owners so that they can enter into new contractual arrangements with the new owner. Letters for the National Water Commission (water) and Jamaica Public Service Ltd (electricity); the letter of possession; and the Tax Registration form are prepared by the parties who also share the cost equally. The purchaser at the end of the day is given all these letters along with his title to the property for him to deliver these letters at his leisure. If the valuation number to the property is added to the transfer document then the tax roll is then amended automatically. There is an expedited procedure to be completed in 48 hs for simple transfers of previously registered properties, when there are no mortgages attached. The documentation shall include: (i) Instrument of Transfer (ii) Duplicate Certi cate of Title Please note that Jamaica has two registries: (i) Registrar of Titles/National Land Title Division --deals with properties that are bought under the Registration of Titles Act. (ii) The Registrar General Department deals with properties that do not have a registered title (not applicable to the Doing Business case study). Takes place simultaneously with previous procedure. Details – Registering Property in Jamaica – Measure of Quality Answer Score Quality of the land administration index (0-30) 14.0 Reliability of infrastructure index (0-8) 5.0 What is the institution in charge of immovable property registration? Registrar of Titles / National Land Agency of Jamaica In what format are the majority of title or deed records kept in the largest business city Computer/Scann 1.0 —in a paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for checking for encumbrances (liens, mortgages, Yes 1.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: The Surveying and Mapping Department of the National Land Agency of Jamaica Page 29   Takes place simultaneously with previous procedure. Doing Business 2018 Jamaica Details – Registering Property in Jamaica – Measure of Quality Answer Score Quality of the land administration index (0-30) 14.0 Reliability of infrastructure index (0-8) 5.0 What is the institution in charge of immovable property registration? Registrar of Titles / National Land Agency of Jamaica In what format are the majority of title or deed records kept in the largest business city Computer/Scann 1.0 —in a paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for checking for encumbrances (liens, mortgages, Yes 1.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: The Surveying and Mapping Department of the National Land Agency of Jamaica In what format are the majority of maps of land plots kept in the largest business city— Computer/Fully 2.0 in a paper format or in a computerized format (scanned or fully digital)? digital Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Separate 0.0 cadastral or mapping agency kept in a single database, in di erent but linked databases databases or in separate databases? Do the immovable property registration agency and cadastral or mapping agency use No 0.0 the same identi cation number for properties? Transparency of information index (0–6) 5.5 Who is able to obtain information on land ownership at the agency in charge of Anyone who 1.0 immovable property registration in the largest business city? pays the o cial fee Is the list of documents that are required to complete any type of property transaction Yes, online 0.5 made publicly available–and if so, how? Link for online access: http://nla.gov.jm/ sites/default/ les /TRANSFER_webs ite.pdf; http://www.nla.g ov.jm/forms_lan dtitles.asp Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5 immovable property registration in the largest business city made publicly available– and if so, how? Page 30   ov.jm/forms_lan Doing Business 2018 Jamaica dtitles.asp Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5 immovable property registration in the largest business city made publicly available– and if so, how? Link for online access: http://www.nla.g ov.jm/content/nl a-price-list-land- valuation-and- land-titling http://www.nla.g ov.jm/content/o nline-fee- calculator Does the agency in charge of immovable property registration commit to delivering a Yes, online 0.5 legally binding document that proves property ownership within a speci c time frame– and if so, how does it communicate the service standard? Link for online access: http://nla.gov.jm/ content/citizens- charter Is there a speci c and separate mechanism for ling complaints about a problem that Yes 1.0 occurred at the agency in charge of immovable property registration? Contact information: - Customer service / hotline at 1-888-991- 5263 - Manager of the customer service unit at 1- 922-8535-7 - Senior director of the Standards and Monitoring Unit at the Cabinet o ce at 1-929-1423 - O ce of the Public Defender at 1-922-7089/ 1- 922-7090 Are there publicly available o cial statistics tracking the number of transactions at the No 0.0 immovable property registration agency? Number of property transfers in the largest business city in 2015: Who is able to consult maps of land plots in the largest business city? Freely accessible 0.5 by anyone Is the applicable fee schedule for accessing maps of land plots made publicly available Yes, online 0.5 —and if so, how? Link for online access: http://nla.gov.jm/ content/nla- price-list-maps- cadastral-maps Page 31   Does the cadastral or mapping agency commit to delivering an updated map within a Yes, online 0.5 Is the applicable fee schedule for accessing maps of land plots made publicly available Yes, online 0.5 —and Doing if so, how? Business 2018 Jamaica Link for online access: http://nla.gov.jm/ content/nla- price-list-maps- cadastral-maps Does the cadastral or mapping agency commit to delivering an updated map within a Yes, online 0.5 speci c time frame—and if so, how does it communicate the service standard? Link for online access: http://www.nla.g ov.jm/content/cit izens-charter Is there a speci c and separate mechanism for ling complaints about a problem that Yes 0.5 occurred at the cadastral or mapping agency? Contact information: - Customer service / hotline at 1-888-991- 5263 - Manager of the customer service unit at 1- 922-8535-7 - Senior director of the Standards and Monitoring Unit at the Cabinet o ce at 1-929-1423 - O ce of the Public Defender at 1-922-7089/ 1- 922-7090 Geographic coverage index (0–8) 0.0 Are all privately held land plots in the economy formally registered at the immovable No 0.0 property registry? Are all privately held land plots in the largest business city formally registered at the No 0.0 immovable property registry? Are all privately held land plots in the economy mapped? No 0.0 Are all privately held land plots in the largest business city mapped? No 0.0 Land dispute resolution index (0–8) 3.5 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private Yes 0.5 guarantee? Is there a speci c compensation mechanism to cover for losses incurred by parties who Yes 0.5 engaged in good faith in a property transaction based on erroneous information certi ed by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a Yes 0.5 property transaction (e.g., checking the compliance of contracts with requirements of Page 32   the law)? engaged in good faith in a property transaction based on erroneous information ed by the immovable certi Business Doing property registry? 2018 Jamaica Does the legal system require a control of legality of the documents necessary for a Yes 0.5 property transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Registrar; Lawyer. Does the legal system require veri cation of the identity of the parties to a property Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Registrar; Lawyer. Is there a national database to verify the accuracy of identity documents? No 0.0 For a standard land dispute between two local businesses over tenure rights of a Supreme Court property worth 50 times gross national income (GNI) per capita and located in the largest business city, what court would be in charge of the case in the rst instance? How long does it take on average to obtain a decision from the rst-instance court for More than 3 0.0 such a case (without appeal)? years Are there any statistics on the number of land disputes in the rst instance? No 0.0 Number of land disputes in the largest business city in 2015: Equal access to property rights index (-2–0) 0.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0 Do married men and married women have equal ownership rights to property? Yes 0.0 Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set Page 33   registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Do married men and married women have equal ownership rights to property? Yes 0.0 Doing Business 2018 Jamaica Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. Latin America & OECD high Indicator Jamaica Caribbean income Overall Best Performer Strength of legal rights index (0-12) 9 5.3 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 7 4.8 6.6 8.00 (34 Economies) Page 34   Credit registry coverage (% of adults) 0.0 14.0 18.3 100.00 (3 Economies) possible). ABC keeps ownership and possession of the assets. Doing Business 2018 Jamaica Latin America & OECD high Indicator Jamaica Caribbean income Overall Best Performer Strength of legal rights index (0-12) 9 5.3 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 7 4.8 6.6 8.00 (34 Economies) Credit registry coverage (% of adults) 0.0 14.0 18.3 100.00 (3 Economies) Credit bureau coverage (% of adults) 24.1 43.1 63.7 100.00 (23 Economies) Figure – Getting Credit in Jamaica and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 90.00: Puerto Rico (U.S.) (Rank: 6) 80.00: Jamaica (Rank: 20) 50.94: Regional Average (Latin America & Caribbean) 30.00: Grenada (Rank: 142) 25.00: Antigua and Barbuda (Rank: 159) 25.00: St. Kitts and Nevis (Rank: 159) Note: The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting credit. These scores are the distance to frontier score for the sum of the strength of legal rights index and the depth of credit information index. Figure – Legal Rights in Jamaica and comparator economies 12 11 10 9 8 Index score 6 6 5 5 5.3 4 2 0 Jamaica Antigua and Barbuda Grenada Puerto Rico (U.S.) St. Kitts and Nevis Latin America & Caribbean Details – Legal Rights in Jamaica Strength of legal rights index (0-12) 9 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and Yes enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without Yes requiring a speci c description of collateral? Page 35   Jamaica Antigua and Barbuda Grenada Puerto Rico (U.S.) St. Kitts and Nevis Latin America & Caribbean Doing Business 2018 Jamaica Details – Legal Rights in Jamaica Strength of legal rights index (0-12) 9 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and Yes enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without Yes requiring a speci c description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring Yes a speci c description of collateral? May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds Yes or replacements of the original assets? Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and Yes obligations be secured between parties; and can the collateral agreement include a maximum amount for which the assets are encumbered? Is a collateral registry in operation for both incorporated and non-incorporated entities, that is uni ed geographically Yes and by asset type, with an electronic database indexed by debtor's name? Does a notice-based collateral registry exist in which all functional equivalents can be registered? Yes Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be Yes performed online by any interested third party? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency No procedure? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a business is liquidated? No Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised No reorganization procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and/or sets a time limit for it? Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law Yes allow the secured creditor to sell the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt? Figure – Credit Information in Jamaica and comparator economies 8 7 7 6 Index score 4.8 4 2 0 0 0 0 Jamaica Antigua and Barbuda Grenada Puerto Rico (U.S.) St. Kitts and Nevis Latin America & Caribbean Details – Credit Information in Jamaica Page 36   0 0 0 0 Jamaica Doing Business 2018 Antigua and Barbuda Jamaica Grenada Puerto Rico (U.S.) St. Kitts and Nevis Latin America & Caribbean Details – Credit Information in Jamaica Credit Credit Depth of credit information index (0-8) bureau registry Score Are data on both firms and individuals distributed? Yes No 1 Are both positive and negative credit data distributed? Yes No 1 Are data from retailers or utility companies - in addition to data from banks and financial institutions - No No 0 distributed? Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more Yes No 1 than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.) Are data on loan amounts below 1% of income per capita distributed? Yes No 1 By law, do borrowers have the right to access their data in the credit bureau or credit registry? Yes No 1 Can banks and financial institutions access borrowers’ credit information online (for example, Yes No 1 through an online platform, a system-to-system connection or both)? Are bureau or registry credit scores offered as a value-added service to help banks and financial Yes No 1 institutions assess the creditworthiness of borrowers? Score ("yes" to either public bureau or private registry) 7 Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0. Coverage Credit bureau Credit registry Number of individuals 454,346 0 Number of firms 14,090 0 Total 468,436 0 Percentage of adult population 24.1 0.0 Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it is assumed that Buyer is a large private company with multiple Page 37   transactions; Available legal remedies (damages, Percentage of adult population 24.1 0.0 Doing Business 2018 Jamaica Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it transactions; Available legal remedies (damages, is assumed that Buyer is a large private company with multiple disgorgement of profits, fines, imprisonment, shareholders. rescission of the transaction) - Has a board of directors and a chief executive o cer (CEO) who may legally act on behalf of Buyer where permitted, even if this is not speci cally Ease of shareholder suits index (0–10): Access to required by law. internal corporate documents; Evidence - Has a supervisory board (applicable to economies with a two-tier board obtainable during trial and allocation of legal system) on which 60% of the shareholder-elected members have been expenses appointed by Mr. James, who is Buyer’s controlling shareholder and a Extent of conflict of interest regulation index member of Buyer’s board of directors. (0–10): Simple average of the extent of disclosure, - Has not adopted any bylaws or articles of association that di er from extent of director liability and ease of default minimum standards and does not follow any nonmandatory codes, shareholder indices principles, recommendations or guidelines relating to corporate Extent of shareholder rights index (0-10): governance. Shareholders’ rights and role in major corporate - Is a manufacturing company with its own distribution network. decisions Extent of ownership and control index (0-10): The transaction involves the following details: Governance safeguards protecting shareholders - Mr. James owns 60% of Buyer and elected two directors to Buyer’s ve- from undue board control and entrenchment member board. Extent of corporate transparency index (0-10): - Mr. James also owns 90% of Seller, a company that operates a chain of Corporate transparency on ownership stakes, retail hardware stores. Seller recently closed a large number of its stores. compensation, audits and financial prospects - Mr. James proposes that Buyer purchase Seller’s unused eet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer Extent of shareholder governance index (0–10): agrees. The price is equal to 10% of Buyer’s assets and is higher than the Simple average of the extent of shareholders market value. rights, extent of ownership and control and - The proposed transaction is part of the company’s ordinary course of extent of corporate transparency indices business and is not outside the authority of the company. Strength of minority investor protection index - Buyer enters into the transaction. All required approvals are obtained, (0–10): Simple average of the extent of conflict of and all required disclosures made (that is, the transaction is not interest regulation and extent of shareholder fraudulent). governance indices - The transaction causes damages to Buyer. Shareholders sue Mr. James and the other parties that approved the transaction. Latin America & OECD high Indicator Jamaica Caribbean income Overall Best Performer Extent of conflict of interest regulation index (0- 5.7 5.3 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 5.3 4.1 6.4 Page 38   9.00 (Kazakhstan) and the other parties that approved the transaction. Doing Business 2018 Jamaica Latin America & OECD high Indicator Jamaica Caribbean income Overall Best Performer Extent of conflict of interest regulation index (0- 5.7 5.3 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 5.3 4.1 6.4 9.00 (Kazakhstan) Figure – Protecting Minority Investors in Jamaica and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 55.00: Jamaica (Rank: 81) 51.67: Antigua and Barbuda (Rank: 96) 50.00: Puerto Rico (U.S.) (Rank: 108) 48.33: St. Kitts and Nevis (Rank: 119) 47.24: Regional Average (Latin America & Caribbean) 43.33: Grenada (Rank: 132) Note: The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier scores for protecting minority investors. These scores are the simple average of the distance to frontier scores for the extent of con ict of interest regulation index and the extent of shareholder governance index. Figure – Protecting Minority Investors in Jamaica and comparator economies – Measure of Quality Jamaica 6 8 4 4 6 5 Antigua and Barbuda 3 8 4 4 4 8 Grenada 1 8 4 2 3 8 Puerto Rico (U.S.) 6 6 7 2 1 8 St. Kitts and Nevis 4 8 4 1 4 8 OECD high income 7.3 5.6 6.5 5.2 6.3 7.4 Latin America & Caribbean 4.1 5.4 4.4 3.4 5.6 6.5 0 5 10 15 20 25 30 35 40 Sub-Indicator Score Extent of corporate transparency index (0­10) Extent of director liability index (0­10) Extent of disclosure index (0­10) Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Details – Protecting Minority Investors in Jamaica – Measure of Quality Answer Score Page 39   Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Doing Business 2018 Jamaica Details – Protecting Minority Investors in Jamaica – Measure of Quality Answer Score Extent of con ict of interest regulation index (0-10) 5.7 Extent of disclosure index (0-10) 4 Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) Board of 2.0 directors excluding interested members Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0 Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Full disclosure of 2.0 all material facts Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) No disclosure 0.0 obligation Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- No disclosure 0.0 2) obligation Extent of director liability index (0-10) 8 Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0 for the damage the transaction caused to Buyer? (0-1) Can shareholders hold the interested director liable for the damage the transaction Liable if unfair or 2.0 caused to Buyer? (0-2) prejudicial Can shareholders hold the other directors liable for the damage the transaction caused Liable if unfair or 2.0 to Buyer (0-2) prejudicial Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by Yes 1.0 shareholders? (0-1) Must Mr. James repay pro ts made from the transaction upon a successful claim by Yes 1.0 shareholders? (0-1) Is Mr. James disquali ed or ned and imprisoned upon a successful claim by No 0.0 shareholders? (0-1) Can a court void the transaction upon a successful claim by shareholders? (0-2) Voidable if 1.0 negligently concluded Ease of shareholder suits index (0-10) 5 Before suing can shareholders representing 10% of Buyer's share capital inspect the No 0.0 transaction documents? (0-1) Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) No 0.0 Can the plainti request categories of documents from the defendant without Yes 1.0 identifying speci c ones? (0-1) Can the plainti directly question the defendant and witnesses at trial? (0-2) Yes 2.0 Page 40   Can the Doing obtain any plainti 2018 Business documents from the defendant and witnesses at trial? (0-3) Jamaica No 0.0 Can the plainti request categories of documents from the defendant without Yes 1.0 identifying speci c ones? (0-1) Can the plainti directly question the defendant and witnesses at trial? (0-2) Yes 2.0 Is the level of proof required for civil suits lower than that of criminal cases? (0-1) Yes 1.0 Can shareholder plainti s recover their legal expenses from the company? (0-2) Yes if successful 1.0 Extent of shareholder governance index (0-10) 5.3 Extent of shareholder rights index (0-10) 6 Does the sale of 51% of Buyer's assets require shareholder approval? No 0.0 Can shareholders representing 10% of Buyer's share capital call for a meeting of No 0.0 shareholders? Must Buyer obtain its shareholders’ approval every time it issues new shares? Yes 1.0 Do shareholders automatically receive preemption rights every time Buyer issues new Yes 1.0 shares? Must shareholders approve the election and dismissal of the external auditor? Yes 1.0 Are changes to the rights of a class of shares only possible if the holders of the a ected Yes 1.0 shares approve? Assuming that Buyer is a limited company, does the sale of 51% of its assets require No 0.0 member approval? Assuming that Buyer is a limited company, can members representing 10% call for a Yes 1.0 meeting of members? Assuming that Buyer is a limited company, must all members consent to add a new No 0.0 member? Assuming that Buyer is a limited company, must a member rst o er to sell their Yes 1.0 interest to the existing members before they can sell to non-members? Extent of ownership and control index (0-10) 4 Is it forbidden to appoint the same individual as CEO and chair of the board of Yes 1.0 directors? Must the board of directors include independent and nonexecutive board members? Yes 1.0 Can shareholders remove members of the board of directors without cause before the Yes 1.0 end of their term? Must the board of directors include a separate audit committee exclusively comprising No 0.0 board members? Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? Must Buyer pay declared dividends within a maximum period set by law? No 0.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? No 0.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve No 0.0 Page 41   Buyer pay declared MustBusiness Doing dividends within a maximum period set by law? 2018 Jamaica No 0.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? No 0.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve No 0.0 disagreements among members? Assuming that Buyer is a limited company, must a potential acquirer make a tender No 0.0 o er to all shareholders upon acquiring 50% of Buyer? Assuming that Buyer is a limited company, must Buyer distribute pro ts within a No 0.0 maximum period set by law? Extent of corporate transparency index (0-10) 6 Must Buyer disclose direct and indirect bene cial ownership stakes representing 5%? Yes 1.0 Must Buyer disclose information about board members’ primary employment and Yes 1.0 directorships in other companies? Must Buyer disclose the compensation of individual managers? Yes 1.0 Must a detailed notice of general meeting be sent 21 days before the meeting? No 0.0 Can shareholders representing 5% of Buyer’s share capital put items on the general No 0.0 meeting agenda? Must Buyer's annual nancial statements be audited by an external auditor? Yes 1.0 Must Buyer disclose its audit reports to the public? Yes 1.0 Assuming that Buyer is a limited company, must members meet at least once a year? No 0.0 Assuming that Buyer is a limited company, can members representing 5% put items on No 0.0 the meeting agenda? Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with post ling processes. Information is also compiled on frequency of ling Total number of taxes and contributions paid, Page 42   and payments, time taken to comply with tax laws, time taken to comply including consumption taxes (value added tax, Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Doing Business 2018 Jamaica Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with post ling processes. Information is also compiled on frequency of ling Total number of taxes and contributions paid, and payments, time taken to comply with tax laws, time taken to comply including consumption taxes (value added tax, with the requirements of post ling processes and time waiting. sales tax or goods and service tax) Method and frequency of filing and payment To make data comparable across economies, several assumptions are used: Time required to comply with 3 major taxes - TaxpayerCo is a medium-size business that started operations on January (hours per year) 1, 2015. It produces ceramic flowerpots and sells them at retail. All taxes Collecting information, computing tax payable and contributions recorded are paid in the second year of operation Completing tax return, filing with agencies (calendar year 2016). Taxes and mandatory contributions are measured at all levels of government. Arranging payment or withholding Preparing separate tax accounting books, if The VAT refund process: required - In June 2016, TaxpayerCo. makes a large capital purchase: the value of the Total tax and contribution rate (% of pro t before machine is 65 times income per capita of the economy. Sales are equally all taxes) spread per month (1,050 times income per capita divided by 12) and cost of goods sold are equally expensed per month (875 times income per Profit or corporate income tax capita divided by 12). The machinery seller is registered for VAT and excess Social contributions, labor taxes paid by input VAT incurred in June will be fully recovered after four consecutive employer months if the VAT rate is the same for inputs, sales and the machine and Property and property transfer taxes the tax reporting period is every month. Input VAT will exceed Output VAT Dividend, capital gains, financial transactions in June 2016. taxes The corporate income tax audit process: Waste collection, vehicle, road and other taxes - An error in calculation of income tax liability (for example, use of incorrect Post ling Index tax depreciation rates, or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a corporate income Time to comply with a VAT refund tax underpayment. TaxpayerCo. discovered the error and voluntarily Time to receive a VAT refund noti ed the tax authority. The value of the underpaid income tax liability is Time to comply with a corporate income tax audit 5% of the corporate income tax liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax Time to complete a corporate income tax audit return, but within the tax assessment period. Latin America & OECD high Indicator Jamaica Caribbean income Overall Best Performer Payments (number per year) 11 28.0 10.9 3 (Hong Kong SAR, China) Page 43   return, but within the tax assessment period. Doing Business 2018 Jamaica Latin America & OECD high Indicator Jamaica Caribbean income Overall Best Performer Payments (number per year) 11 28.0 10.9 3 (Hong Kong SAR, China) Time (hours per year) 268 332.1 160.7 55 (Luxembourg) Total tax and contribution rate (% of profit) 33.1 46.6 40.1 18.47% (32 Economies) Postfiling index (0-100) 19.68 47.50 83.45 99.38 (Estonia) Figure – Paying Taxes in Jamaica and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 65.67: Jamaica (Rank: 122) 64.41: St. Kitts and Nevis (Rank: 124) 60.16: Regional Average (Latin America & Caribbean) 59.39: Grenada (Rank: 141) 58.69: Antigua and Barbuda (Rank: 144) 52.42: Puerto Rico (U.S.) (Rank: 161) Note: The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of paying taxes. These scores are the simple average of the distance to frontier scores for each of the four component indicators – number of tax payments. time, total tax rate and post ling index – with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax rate. The nonlinear distance to frontier for the total tax rate is equal to the distance to frontier for the total tax rate to the power of 0.8. The threshold is de ned as the total tax rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax rate below this threshold receive the same score as the economy at the threshold. Figure – Paying Taxes in Jamaica and comparator economies – Measure of Quality 80 75.73 69.40 70 60 48.85 47.50 Index score 50 40 30 19.68 20 13.76 10 0 Jamaica Antigua and Barbuda Grenada Puerto Rico (U.S.) St. Kitts and Nevis Latin America & Caribbean Details – Paying Taxes in Jamaica Total tax and Payments Notes on Time Statutory contribution rate Notes Tax or mandatory contribution (number) Payments (hours) tax rate Tax base (% of profit) on TTR Page 44   Corporate income tax 1 online 42 25% taxable 14.00 Doing Business 2018 Jamaica Figure – Paying Taxes in Jamaica and comparator economies – Measure of Quality 80 75.73 69.40 70 60 48.85 47.50 Index score 50 40 30 19.68 20 13.76 10 0 Jamaica Antigua and Barbuda Grenada Puerto Rico (U.S.) St. Kitts and Nevis Latin America & Caribbean Details – Paying Taxes in Jamaica Total tax and Payments Notes on Time Statutory contribution rate Notes Tax or mandatory contribution (number) Payments (hours) tax rate Tax base (% of profit) on TTR Corporate income tax 1 online 42 25% taxable 14.00 profits Education Tax 0 online 3.5% gross 3.85 and salaries jointly HEART contribution (Human 0 online 3% gross 3.38 Employment and Resource and salaries Training) jointly National Housing Trust 0 online 3% gross 3.38 and salaries jointly Property transfer tax 1 5% sale price 3.03 Social security contribution 1 online 168 2.5% gross 2.82 National Insurance salaries Stamp duty 1 4% sale price 1.21 Property tax 1 various 0.99 rates Tax on interest 0 25% interest 0.64 not income included Asset tax 1 various 0.36 rates Vehicle tax 2 JMD fixed fee 0.06 18,000 Annual return filing fee 1 JMD fixed fee 0.02 5,000 Fuel tax 1 fuel 0.00 Page 45   small Vehicle tax 2 JMD fixed fee 0.06 Doing Business 2018 Jamaica 18,000 Annual return filing fee 1 JMD fixed fee 0.02 5,000 Fuel tax 1 fuel 0.00 small consumption amount Value added tax (VAT) 1 online 58 16.5% value added 0.00 not included Totals 11 268 33.1 Details – Paying Taxes in Jamaica – Tax by Type Taxes by type Answer Profit tax (% of profit) 14.0 Labor tax and contributions (% of profit) 13.4 Other taxes (% of profit) 5.7 Details – Paying Taxes in Jamaica – Measure of Quality Answer Score Post ling index (0-100) 19.68 VAT refunds Does VAT exist? Yes Does a VAT refund process exist per the case study? Yes Restrictions on VAT refund process None Percentage of cases exposed to a VAT audit (%) 50% - 74% Is there a mandatory carry forward period? No Time to comply with VAT refund (hours) 40.0 20 Time to obtain a VAT refund (weeks) 89.5 0 Corporate income tax audits Does corporate income tax exist? Yes Percentage of cases exposed to a corporate income tax audit (%) 50% - 74% Time to comply with a corporate income tax audit (hours) 24.0 58.72 Time to complete a corporate income tax audit (weeks) 113.3 0 Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. Page 46   The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named Doing Business corporate income tax2018 Jamaica in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents hours, the data are recorded as is. Alternatively, suppose documents are required by destination economy and any transit submitted to a customs agency at 8:00a.m., are processed overnight and economies can be picked up at 8:00a.m. the next day. The time for customs clearance Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24 practice, including electronic submissions of hours. information Border compliance Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire. than 20% of shipments) Contributors are private sector experts in international trade logistics and Handling and inspections that take place at the are informed about exchange rates. economy’s port or border Assumptions of the case study: - For all 190 economies covered by Doing Domestic transport Business, it is assumed a shipment is in a warehouse in the largest Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the warehouse or port/border largest business city of the importing economy. - It is assumed each Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708) Traffic delays and road police checks while from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed each shipment is en route economy exports the product of its comparative advantage (de ned by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000. - The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport, airport or land border crossing) where merchandise can enter or leave an economy. - Page 47   Relevant government agencies include customs, port authorities, road a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Doing Business 2018 Jamaica Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents hours, the data are recorded as is. Alternatively, suppose documents are required by destination economy and any transit submitted to a customs agency at 8:00a.m., are processed overnight and economies can be picked up at 8:00a.m. the next day. The time for customs clearance Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24 practice, including electronic submissions of hours. information Border compliance Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire. than 20% of shipments) Contributors are private sector experts in international trade logistics and Handling and inspections that take place at the are informed about exchange rates. economy’s port or border Assumptions of the case study: - For all 190 economies covered by Doing Domestic transport Business, it is assumed a shipment is in a warehouse in the largest Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the warehouse or port/border largest business city of the importing economy. - It is assumed each Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708) Traffic delays and road police checks while from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed each shipment is en route economy exports the product of its comparative advantage (de ned by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000. - The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport, airport or land border crossing) where merchandise can enter or leave an economy. - Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities. Page 48   of agriculture or industry, national security agencies and any other Doing Business 2018 Jamaica government authorities. Latin America & OECD high Indicator Jamaica Caribbean income Overall Best Performer Time to export: Border compliance (hours) 58 62.5 12.7 0 (17 Economies) Cost to export: Border compliance (USD) 876 526.5 149.9 0.00 (19 Economies) Time to export: Documentary compliance 47 53.3 2.4 1.0 (25 Economies) (hours) Cost to export: Documentary compliance (USD) 90 110.4 35.4 0.00 (19 Economies) Time to import: Border compliance (hours) 80 64.4 8.7 0.00 (21 Economies) Cost to import: Border compliance (USD) 906 684.0 111.6 0.00 (27 Economies) Time to import: Documentary compliance 56 79.9 3.5 1.0 (30 Economies) (hours) Cost to import: Documentary compliance (USD) 90 119.5 25.6 0.00 (30 Economies) Figure – Trading across Borders in Jamaica and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 81.86: Puerto Rico (U.S.) (Rank: 64) 81.04: St. Kitts and Nevis (Rank: 66) 68.73: Antigua and Barbuda (Rank: 101) 68.71: Regional Average (Latin America & Caribbean) 61.54: Jamaica (Rank: 130) 61.52: Grenada (Rank: 131) Note: The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for trading across borders. These scores are the simple average of the distance to frontier scores for the time and cost for documentary compliance and border compliance to export and import (domestic transport is not used for calculating the ranking). Figure – Trading across Borders in Jamaica – Time and Cost Time Cost 90 1000 80 906 876 80 70 800 58 56 60 Time (hours) Cost (USD) 47 600 50 40 400 30 20 200 90 90 10 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Page 49   Doing Business 2018 Jamaica Figure – Trading across Borders in Jamaica – Time and Cost Time Cost 90 1000 80 906 876 80 70 800 58 56 60 Time (hours) Cost (USD) 47 600 50 40 400 30 20 200 90 90 10 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Details – Trading across Borders in Jamaica Characteristics Export Import Product HS 28 : Inorganic chemicals; organic or inorganic compounds of precious HS 8708: Parts and metals, of rare-earth metals, of radioactive elements or of isotopes accessories of motor vehicles Trade partner Canada United States Border Kingston port Kingston port Distance (km) 15 15 Domestic 3 3 transport time (hours) Domestic 385 387 transport cost (USD) Details – Trading across Borders in Jamaica – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 7.4 484.0 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 53.7 392.0 Import: Clearance and inspections required by customs authorities 35.0 514.0 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 72.0 392.0 Page 50   Details – Trading across Borders in Jamaica – Trade Documents (USD) Doing Business 2018 Jamaica Details – Trading across Borders in Jamaica – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 7.4 484.0 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 53.7 392.0 Import: Clearance and inspections required by customs authorities 35.0 514.0 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 72.0 392.0 Details – Trading across Borders in Jamaica – Trade Documents Export Import Bill of Lading Bill of Lading Commercial Invoice (CARICOM) Commercial Invoice Export Entry Form (C82) Import Entry (C87) Packing List Customs release order Dock receipt Gate pass Export License Packing list Approval Letter from the Ministry of Energy and Mining Tax compliance Certificate Certificate of origin (CARICOM) SOLAS certificate SOLAS certificate Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the (Seller - The dispute concerns a lawful transaction between two businessesPage 51   courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 SOLAS certificate Doing Business 2018 Jamaica Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Attorney fees economies the data are also collected for the second largest business city. - The buyer orders custom-made goods, then fails to pay. Court fees - The value of the dispute is 200% of the income per capita or the Enforcement fees equivalent in local currency of USD 5,000, whichever is greater. Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000. Court structure and proceedings (-1-5) - The seller requests a pretrial attachment to secure the claim. Case management (0-6) - The dispute on the quality of the goods requires an expert opinion. Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. Alternative dispute resolution (0-3) - The seller enforces the judgment through a public sale of the buyer’s movable assets. Standardized Case Claim value JMD 1,173,505.00 Court name Supreme Court of Jamaica, Kingston Commercial Court City Covered Kingston Latin America & OECD high Indicator Jamaica Caribbean income Overall Best Performer Time (days) 550 767.1 577.8 164.00 (Singapore) Cost (% of claim value) 50.2 31.4 21.5 9.00 (Iceland) Quality of judicial processes index (0-18) 8.5 8.4 11.0 15.50 (Australia) Figure – Enforcing Contracts in Jamaica and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 68.11: Antigua and Barbuda (Rank: 33) 65.51: St. Kitts and Nevis (Rank: 50) 59.33: Grenada (Rank: 76) Page 52   of judicial processes Quality Business Doing index (0-18) 2018 Jamaica 8.5 8.4 11.0 15.50 (Australia) Figure – Enforcing Contracts in Jamaica and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 68.11: Antigua and Barbuda (Rank: 33) 65.51: St. Kitts and Nevis (Rank: 50) 59.33: Grenada (Rank: 76) 54.41: Puerto Rico (U.S.) (Rank: 113) 53.13: Regional Average (Latin America & Caribbean) 51.87: Jamaica (Rank: 127) Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their distance to frontier scores for enforcing contracts. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Enforcing Contracts in Jamaica – Time and Cost Time Cost 900 60 800 50.2 767.1 688 50 Cost (% of claim value) 700 630 550 577.8 578 600 40 Time (days) 476 32.6 31.4 500 30.2 27.1 26.6 30 400 21.5 300 20 200 10 100 0 0 Antigua and Barbuda Grenada Jamaica Latin America & OECD high income Puerto Rico (U.S.) St. Kitts and Nevis Caribbean Figure – Enforcing Contracts in Jamaica and comparator economies – Measure of Quality Jamaica 2.5 1 0.5 4.5 Antigua and Barbuda 2.5 3 1.5 4.5 Grenada 2 3 1.5 4.5 Puerto Rico (U.S.) 2 1.5 0.5 3 St. Kitts and Nevis 2.5 3 1.5 4.5 OECD high income 2.5 2.9 2 3.6 Latin America & Caribbean 2.4 2 0.9 3.5 0 2 4 6 8 10 12 Page 53   14 Antigua and Barbuda Grenada Jamaica Latin America & OECD high income Puerto Rico (U.S.) St. Kitts and Nevis Caribbean Doing Business 2018 Jamaica Figure – Enforcing Contracts in Jamaica and comparator economies – Measure of Quality Jamaica 2.5 1 0.5 4.5 Antigua and Barbuda 2.5 3 1.5 4.5 Grenada 2 3 1.5 4.5 Puerto Rico (U.S.) 2 1.5 0.5 3 St. Kitts and Nevis 2.5 3 1.5 4.5 OECD high income 2.5 2.9 2 3.6 Latin America & Caribbean 2.4 2 0.9 3.5 0 2 4 6 8 10 12 14 Sub-Indicator Score Alternative dispute resolution (0­3) Case management (0­6) Court automation (0­4) Court structure and proceedings (­1­5) Details – Enforcing Contracts in Jamaica Indicator Time (days) 550 Filing and service 30 Trial and judgment 450 Enforcement of judgment 70 Cost (% of claim value) 50.2 Attorney fees 35 Court fees 10.2 Enforcement fees 5 Quality of judicial processes index (0-18) 8.5 Court structure and proceedings (-1-5) 4.5 Case management (0-6) 1.0 Court automation (0-4) 0.5 Alternative dispute resolution (0-3) 2.5 Details – Enforcing Contracts in Jamaica – Measure of Quality Page 54   Alternative dispute resolution (0-3) 2.5 Doing Business 2018 Jamaica Details – Enforcing Contracts in Jamaica – Measure of Quality Answer Score Quality of judicial processes index (0-18) 8.5 Court structure and proceedings (-1-5) 4.5 1. Is there a court or division of a court dedicated solely to hearing commercial cases? Yes 1.5 2. Small claims court 1.5 2.a. Is there a small claims court or a fast-track procedure for small claims? Yes 2.b. If yes, is self-representation allowed? Yes 3. Is pretrial attachment available? Yes 1.0 4. Are new cases assigned randomly to judges? Yes, but manual 0.5 5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0 Case management (0-6) 1.0 1. Time standards 0.0 1.a. Are there laws setting overall time standards for key court events in a civil case? Yes 1.b. If yes, are the time standards set for at least three court events? No 1.c. Are these time standards respected in more than 50% of cases? No 2. Adjournments 0.0 2.a. Does the law regulate the maximum number of adjournments that can be No granted? 2.b. Are adjournments limited to unforeseen and exceptional circumstances? No 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a. 3. Can two of the following four reports be generated about the competent court: (i) No 0.0 time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? 4. Is a pretrial conference among the case management techniques used before the Yes 1.0 competent court? 5. Are there any electronic case management tools in place within the competent court No 0.0 for use by judges? 6. Are there any electronic case management tools in place within the competent court No 0.0 for use by lawyers? Court automation (0-4) 0.5 1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 the competent court? 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? Page 55   1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 Businesscourt? the competent Doing 2018 Jamaica 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? 3. Can court fees be paid electronically within the competent court? No 0.0 4. Publication of judgments 0.5 4.a Are judgments rendered in commercial cases at all levels made available to the No general public through publication in o cial gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme Yes court level made available to the general public through publication in o cial gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0-3) 2.5 1. Arbitration 1.5 1.a. Is domestic commercial arbitration governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all its aspects? 1.b. Are there any commercial disputes—aside from those that deal with public No order or public policy—that cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes 2. Mediation/Conciliation 1.0 2.a. Is voluntary mediation or conciliation available? Yes 2.b. Are mediation, conciliation or both governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all their aspects? 2.c. Are there nancial incentives for parties to attempt mediation or conciliation (i.e., No if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Page 56   Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Doing Business 2018 Jamaica Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent Court fees in local currency of USD 200,000, whichever is greater. - The hotel has a loan from a domestic bank, secured by a mortgage over Fees of insolvency administrators the hotel’s real estate. The hotel cannot pay back the loan, but makes Lawyers’ fees enough money to operate otherwise. Assessors’ and auctioneers’ fees In addition, Doing Business evaluates the adequacy and integrity of the Other related fees existing legal framework applicable to liquidation and reorganization Outcome proceedings through the strength of insolvency framework index. The index tests whether economies adopted internationally accepted good Whether business continues operating as a going practices in four areas: commencement of proceedings, management of concern or business assets are sold piecemeal debtor’s assets, reorganization proceedings and creditor participation. Recovery rate for creditors Measures the cents on the dollar recovered by secured creditors Outcome for the business (survival or not) determines the maximum value that can be recovered Official costs of the insolvency proceedings are deducted Depreciation of furniture is taken into account Present value of debt recovered Strength of insolvency framework index (0- 16) Sum of the scores of four component indices: Commencement of proceedings index (0-3) Management of debtor’s assets index (0-6) Reorganization proceedings index (0-3) Creditor participation index (0-4) Latin America & OECD high Indicator Jamaica Caribbean income Overall Best Performer Recovery rate (cents on the dollar) 64.9 30.8 71.2 93.1 (Norway) Time (years) 1.1 2.9 1.7 0.4 (Ireland) Page 57   Cost (% of estate) 18.0 16.8 9.1 1.00 (Norway) Creditor participation index (0-4) Doing Business 2018 Jamaica Latin America & OECD high Indicator Jamaica Caribbean income Overall Best Performer Recovery rate (cents on the dollar) 64.9 30.8 71.2 93.1 (Norway) Time (years) 1.1 2.9 1.7 0.4 (Ireland) Cost (% of estate) 18.0 16.8 9.1 1.00 (Norway) Outcome (0 as piecemeal sale and 1 as going 1 .. .. .. concern) Strength of insolvency framework index (0-16) 11.0 7.2 12.1 15.00 (6 Economies) Figure – Resolving Insolvency in Jamaica and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 84.20: Puerto Rico (U.S.) (Rank: 9) 69.31: Jamaica (Rank: 35) 38.95: Regional Average (Latin America & Caribbean) 35.26: Antigua and Barbuda (Rank: 128) 0.00: Grenada (Rank: 168) 0.00: St. Kitts and Nevis (Rank: 168) Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of insolvency framework index. Figure – Resolving Insolvency in Jamaica – Time and Cost Time Cost 3.5 20 18.0 3.0 2.9 16.8 3 2.5 15 2.5 Cost (% of estate) Time (years) 11.0 2 1.7 9.1 10 1.5 7.0 1.1 1 5 0.5 0 0 Antigua and Barbuda no practice Jamaica Latin America & OECD high income Puerto Rico (U.S.) no practice Grenada Caribbean St. Kitts and Nevis Figure – Resolving Insolvency in Jamaica and comparator economies – Measure of Quality Jamaica 4.5 2.5 3 1 Page 58   Antigua and Barbuda 2 2 1 0 Antigua and Barbuda no practice Jamaica Latin America & OECD high income Puerto Rico (U.S.) no practice Grenada Caribbean St. Kitts and Nevis Doing Business 2018 Jamaica Figure – Resolving Insolvency in Jamaica and comparator economies – Measure of Quality Jamaica 4.5 2.5 3 1 Antigua and Barbuda 2 2 1 0 Grenada 4.5 2.5 3 1 Puerto Rico (U.S.) 6 3 3 3 St. Kitts and Nevis 4.5 2.5 3 1 OECD high income 5.4 2.8 2.3 1.9 Latin America & Caribbean 3.7 2.4 1.9 0.8 0 2 4 6 8 10 12 14 16 Sub-Indicator Score Management of debtor's assets index (0­6) Commencement of proceedings index (0­3) Creditor participation index (0­4) Reorganization proceedings index (0­3) Figure – Resolving Insolvency in Jamaica and comparator economies – Recovery Rate Recovery Rate (cents on the dollar) 80 69.4 70 64.9 60 50 40 36.5 30.8 30 20 10 0.0 0.0 0 Jamaica Antigua and Barbuda Grenada Puerto Rico (U.S.) St. Kitts and Nevis Latin America & Caribbean Details – Resolving Insolvency in Jamaica Indicator Answer Explanation Proceeding receivership After Mirage default on payment, BizBank is likely to file for a in-Court receivership before the Supreme Court of Judicature. The process would generally involve an initial application for an order for the appointment of the receiver which may include, among other things, directions for the filing of interim and final accounts. The Court will then appoint the receiver and thereafter (assuming no opposition or other complication), the receiver will try to sell Mirage as a going concern in order to maximize the return to BizBank. Outcome going concern The hotel will continue operating as a going concern after the receivership procedure as the receiver will seek to sell Mirage as a going concern to maximize the return for BizBank. Time (in years) 1.1 The most likely in-court procedure would be a receivership. As the receiver has to be appointed by the court, the appointment could be accomplished within 6 weeks. The process Page 59   of the receivership is estimated at 13 months. This is dependent on the market conditions Jamaica Antigua and Barbuda Grenada Puerto Rico (U.S.) St. Kitts and Nevis Latin America & Caribbean Doing Business 2018 Jamaica Details – Resolving Insolvency in Jamaica Indicator Answer Explanation Proceeding receivership After Mirage default on payment, BizBank is likely to file for a in-Court receivership before the Supreme Court of Judicature. The process would generally involve an initial application for an order for the appointment of the receiver which may include, among other things, directions for the filing of interim and final accounts. The Court will then appoint the receiver and thereafter (assuming no opposition or other complication), the receiver will try to sell Mirage as a going concern in order to maximize the return to BizBank. Outcome going concern The hotel will continue operating as a going concern after the receivership procedure as the receiver will seek to sell Mirage as a going concern to maximize the return for BizBank. Time (in years) 1.1 The most likely in-court procedure would be a receivership. As the receiver has to be appointed by the court, the appointment could be accomplished within 6 weeks. The process of the receivership is estimated at 13 months. This is dependent on the market conditions for the sale of the business as a going concern. Cost (% of 18.0 The costs associated with the case would amount to approximately 18% of the value of the estate) debtor's estate. Cost incurred during the entire insolvency process mainly include court or government agency fees (0.5%), attorney fees (5%), receiver fees (9%), fees of accountants, assessors, inspectors and other professionals (3%), fees of service providers (0.5%) Recovery rate (cents on the 64.9 dollar) Details – Resolving Insolvency in Jamaica – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 11.0 Commencement of proceedings index (0-3) 2.5 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (c) Both (a) and 1.0 insolvency framework? (b) options are available, but only one of them needs to be complied with Management of debtor's assets index (0-6) 4.5 Does the insolvency framework allow the continuation of contracts supplying essential No 0.0 goods and services to the debtor? Page 60   dollar) Doing Business 2018 Jamaica Details – Resolving Insolvency in Jamaica – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 11.0 Commencement of proceedings index (0-3) 2.5 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (c) Both (a) and 1.0 insolvency framework? (b) options are available, but only one of them needs to be complied with Management of debtor's assets index (0-6) 4.5 Does the insolvency framework allow the continuation of contracts supplying essential No 0.0 goods and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0 contracts? Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0 Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0 Does the insolvency framework provide for the possibility of the debtor obtaining credit Yes 1.0 after commencement of insolvency proceedings? Does the insolvency framework assign priority to post-commencement credit? (a) Yes over all 0.5 pre- commencement creditors, secured or unsecured Reorganization proceedings index (0-3) 1.0 Which creditors vote on the proposed reorganization plan? (b) Only creditors 1.0 whose rights are a ected by the proposed plan Does the insolvency framework require that dissenting creditors in reorganization No 0.0 receive at least as much as what they would obtain in a liquidation? Are the creditors devided into classes for the purposes of voting on the reorganization No 0.0 plan, does each class vote separately and are creditors in the same class treated Page 61   equally? Does the insolvency framework require that dissenting creditors in reorganization No 0.0 receive Doing at least as Business much as 2018 what they would obtain in a liquidation? Jamaica Are the creditors devided into classes for the purposes of voting on the reorganization No 0.0 plan, does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 3.0 Does the insolvency framework require approval by the creditors for selection or Yes 1.0 appointment of the insolvency representative? Does the insolvency framework require approval by the creditors for sale of substantial Yes 1.0 assets of the debtor? Does the insolvency framework provide that a creditor has the right to request Yes 1.0 information from the insolvency representative? Does the insolvency framework provide that a creditor has the right to object to No 0.0 decisions accepting or rejecting creditors' claims? Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost Page 62   (i) notice period for redundancy dismissal; (ii) the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Doing Business 2018 Jamaica Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for work of equal value and nondiscrimination based on gender in hiring; (ii) whether law mandates paid or unpaid maternity leave; (iii) length of paid maternity leave; (iv) whether employees on maternity leave receive 100% of wages; (v) availability of ve fully paid days of sick leave a year; (vi) eligibility requirements for unemployment protection. Details – Labor Market Regulation in Jamaica Answer Hiring Page 63   Fixed-term contracts prohibited for permanent tasks? No days of sick leave a year; (vi) eligibility requirements for unemployment protection. Doing Business 2018 Jamaica Details – Labor Market Regulation in Jamaica Answer Hiring Fixed-term contracts prohibited for permanent tasks? No Maximum length of a single xed-term contract (months) No limit Maximum length of xed-term contracts, including renewals (months) No limit Minimum wage applicable to the worker assumed in the case study (US$/month) 213.7 Ratio of minimum wage to value added per worker 0.4 Maximum length of probationary period (months) 3.0 Working hours Standard workday 8.0 Maximum number of working days per week 6.0 Premium for night work (% of hourly pay) 0.0 Premium for work on weekly rest day (% of hourly pay) 100.0 Premium for overtime work (% of hourly pay) 0.0 Restrictions on night work? No Whether nonpregnant and nonnursing women can work the same night hours as men Yes Restrictions on weekly holiday? No Restrictions on overtime work? No Paid annual leave for a worker with 1 year of tenure (working days) 10.0 Paid annual leave for a worker with 5 years of tenure (working days) 10.0 Paid annual leave for a worker with 10 years of tenure (working days) 15.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 11.7 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party noti cation if one worker is dismissed? No Third-party approval if one worker is dismissed? No Third-party noti cation if nine workers are dismissed? No Third-party approval if nine workers are dismissed? No Retraining or reassignment obligation before redundancy? No Page 64   Third-party Doing approval Business 2018 if nine workers are dismissed? Jamaica No Retraining or reassignment obligation before redundancy? No Priority rules for redundancies? No Priority rules for reemployment? No Redundancy cost Notice period for redundancy dismissal for a worker with 1 year of tenure 2.0 Notice period for redundancy dismissal for a worker with 5 years of tenure 4.0 Notice period for redundancy dismissal for a worker with 10 years of tenure 6.0 Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 4.0 Severance pay for redundancy dismissal for a worker with 1 year of tenure 0.0 Severance pay for redundancy dismissal for a worker with 5 years of tenure 10.0 Severance pay for redundancy dismissal for a worker with 10 years of tenure 20.0 Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 10.0 Job quality Equal remuneration for work of equal value? No Gender nondiscrimination in hiring? No Paid or unpaid maternity leave mandated by law? Yes Minimum length of maternity leave (calendar days)? 56.0 Receive 100% of wages on maternity leave? Yes Five fully paid days of sick leave a year? Yes Unemployment protection after one year of employment? No Minimum contribution period for unemployment protection (months)? n.a. Business Reforms in Jamaica In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Jamaica implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Starting a Business: Jamaica made starting a business faster by reinstating next-day service for company incorporation. Getting Electricity: Jamaica improved the reliability of the electricity supply in Kingston by investing in the distribution network through several initiatives, including the installation of smart meters and distribution automation switches. Trading across Borders: Jamaica reduced the time for documentary compliance for importing by implementing a web-based customs data management platform, ASYCUDA World. Page 65   DB2017 Minimum contribution period for unemployment protection (months)? n.a. Doing Business 2018 Jamaica Business Reforms in Jamaica In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Jamaica implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Starting a Business: Jamaica made starting a business faster by reinstating next-day service for company incorporation. Getting Electricity: Jamaica improved the reliability of the electricity supply in Kingston by investing in the distribution network through several initiatives, including the installation of smart meters and distribution automation switches. Trading across Borders: Jamaica reduced the time for documentary compliance for importing by implementing a web-based customs data management platform, ASYCUDA World. DB2017 Starting a Business: Jamaica made starting a business more di cult by removing the ability to complete next day company incorporation. Paying Taxes: Jamaica made paying taxes less costly by increasing tax depreciation rates and the initial capital allowance for assets acquired on or after January 1, 2014. Furthermore, companies incorporated for less than 24 months are exempted from paying the minimum business tax. Jamaica also made paying taxes easier by implementing an electronic system for ling of corporate income tax, VAT and social contributions. Trading across Borders: Jamaica reduced the time of documentary compliance for exporting by implementing an automated customs data management system, ASYCUDA World. DB2016 Starting a Business: Jamaica made starting a business easier by streamlining internal procedures. Dealing with Construction Permits: Jamaica made dealing with construction permits easier by implementing a new work ow for processing building permit applications. Paying Taxes: Jamaica made paying taxes easier and less costly for companies by encouraging taxpayers to pay their taxes online, introducing an employment tax credit and increasing the depreciation rate for industrial buildings. At the same time, Jamaica introduced a minimum business tax, raised the contribution rate for the national insurance scheme paid by employers and increased the rates for stamp duty, the property tax, the property transfer tax and the education tax. Resolving Insolvency: Jamaica made resolving insolvency easier by introducing a reorganization procedure; introducing provisions to facilitate the continuation of the debtor’s business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public o ce responsible for the general administration of insolvency proceedings. DB2015 Starting a Business: Jamaica made starting a business easier by consolidating forms, but also made it more time-consuming as a result of delays in the implementation of the electronic interface with di erent agencies. Getting Electricity: Jamaica made getting electricity less expensive by reducing the cost of external connection works. Getting Credit: Jamaica improved access to credit by establishing credit bureaus and by adopting a new secured transactions law that implements a functional secured transactions system, broadens the range of assets that can be used as collateral, allows a general description of assets granted as collateral and establishes a modern, notice-based collateral registry. Paying Taxes: Jamaica made paying taxes more costly for companies by introducing a new minimum business tax. DB2014 Starting a Business: Jamaica made starting a business easier by enabling the Companies O ce of Jamaica to stamp the new Page 66   company’s articles of incorporation at registration. Doing Business 2018 DB2014 Jamaica Starting a Business: Jamaica made starting a business easier by enabling the Companies O ce of Jamaica to stamp the new company’s articles of incorporation at registration. Registering Property: Jamaica made transferring property more di cult by increasing the transfer tax and the stamp duty. Getting Credit: Jamaica improved its credit information system by creating a legal and regulatory framework for private credit bureaus. Paying Taxes: Jamaica made paying taxes less costly for companies by reducing the corporate income tax rate—though it also increased vehicle and asset taxes. DB2013 Paying Taxes: Jamaica made paying taxes easier for companies by allowing joint ling and payment of all social security contributions. Trading across Borders: Jamaica reduced the time to import by allowing customs entries to be lodged at night. DB2011 Registering Property: Jamaica eased the transfer of property by lowering transfer taxes and fees, o ering expedited registration procedures and making information from the company registrar available online. DB2010 Registering Property: Jamaica made registering property easier by reducing the property transfer tax. DB2009 Dealing with Construction Permits: Jamaica reduced the time required for dealing with construction permits by introducing a statutory time limit for the issuance of building permits. Registering Property: Jamaica made transferring property less costly by reducing the property transfer tax and the stamp duty. Page 67   statutory time limit for the issuance of building permits. Registering Doing 2018Jamaica Property: Business made transferring property less costly by reducing the property transfer tax and the stamp duty. Jamaica Page 68