JCSD ‘Raising the Platform’ for Secondary Bond Market

The Jamaica Central Securities Depository, JCSD, has launched a solution which will enable retail, non-prescribed investors, easier access to their withholding tax certificates on the TAJ RAIS platform to reclaim withholding tax on interest paid on bonds purchased.

JCSD is a subsidiary of the Jamaica Stock Exchange.

It has launched the solution in association with the Tax Administration Jamaica, TAJ.

The JCSD says previously, while prescribed institutional investors were facilitated in this regard, retail investors were not able to re-coup tax on interest paid on purchased bonds on the secondary market.

This was due to the inability to generate tax certificates to claim refunds on the TAJ RAIS platform.

It says the solution will allow the Issuers of the Bond to grant the JCSD Trustee Services, as paying agent, access to the platform to file the withholding taxes as “casual”.

Previously, with a bond on the secondary market, retail investors paid gross interest to acquire the security.

The solution will now enable retail investors to pay net of withholding tax.

The JCSD says this development will reduce the purchase costs of bonds to retail investors, while reducing the need for brokers to absorb the costs of withholding tax from investors who cannot re claim withholding taxes paid on purchases made on the secondary market.

The solution works with bonds under the management of the JCSD and JCSD Trustee Services.