Bond investors now able to reclaim interest paid on withholding tax

Investors in the bond market can now reclaim interest paid on their withholding tax on corporate issues.
Andre Gooden, Group Business Development Manager at the Jamaica Stock Exchange, says the development comes after nearly two years of discussions with Tax administration Jamaica.
"That 25 per cent that is normally withheld on your interest on your corporate bonds, or on bonds generally, can now be reclaimed 45 days subsequent to the payment date," he said. 
The approval for the change came in February.
Mr. Gooden said additional changes have been made to the market to ensure more sustainable growth and to benefit investors.
Additionally, the JSE has announced changes to the repo model, resulting in more efficient processing and movement of securities between brokers. 
Repo is an abbreviation for "repurchase agreement" or "sale and repurchase agreement".
It is a financial transaction in which an investor, usually a bank or a dealer, sells bonds to an investor with an agreement to repurchase the security at a later date and at a slightly higher price.
The difference between the sale price and the repurchase price is the interest paid on the transaction.

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