Withholding tax on services takes effect today

The three per cent withholding tax on services, introduced by the Jamaican Government, takes effect today.
   
The tax, which is to be charged on payments of $50,000 or above to local providers of  specified services, was delayed from its original May 1 implementation date.
   
It is being implemented on a phased basis, with only businesses with revenues above $500 million and central and local government authorities the only withholding agents for now.
   
Specified services to be affected by the new regime include accounting and auditing, catering, consultancy, engineering, entertainment, legal services, as well as information technology.