Corporate and Personal Taxation

General Information

There is no net worth tax, gift tax, sales tax, turnover tax, or estate duty on Saint Kitts and Nevis. There is also a 15% excise duty on alcohol and tobacco products and a 2% increase in the Social Services Levy on salaries in excess of EC$8,000 monthly.

Personal Taxation

There is no personal income tax in St. Kitts and Nevis, but foreign nationals working in the country are required to obtain a work permit for which there is an annual charge of 3,500 Eastern Caribbean dollars.

There is no VAT as yet.

Employed individuals and their employers each pay 5% of gross wages as social security contributions. Self-employed people pay 10%. Maximum earnings for contribution and benefit purposes: Eastern Caribbean $6,500 per month.

Capital Gains Tax

There is a capital gains tax of 20% on profits or gains derived from a transaction relating to assets located in the Federation which are disposed of within one year of the date of their acquisition.

Withholding Tax

Individuals and ordinary companies remitting payments to persons outside of the Federation must deduct 10% withholding tax from profits, administration, management or head office expenses, technical service fees, accounting and audit expenses, royalties, non-life insurance premiums and rent.

Property Taxes

The following is the land tax schedule for St. Kitts and Nevis (showing the tax rate as US Dollars per acre):

• All cultivated land on the island of St. Kitts $1.48;
• All uncultivated land on the island of St. Kitts $0.37;
• All cultivated or uncultivated land on the island of Nevis $0.37;
• In Special Development Areas, such as the South East Peninsula on St. Kitts, there is a tax of 0.5% of the assessed market value of the land, or land and improvements.

Import Taxes

St. Kitts and Nevis has adopted the common external tariff of CARICOM which ranges from 5% to 20%. In addition, the government imposes a stamp tax of 2% on imports and a consumption tax of 15% on many products, as well as a 3% Customs Service charge.

Corporate Income Tax

Corporate income tax has been reduced in the last few years from 40% to 38% and now to 35%. Many businesses may qualify for development and tax concessions under the fiscal incentives act.

Taxation is based on financial statements adjusted for inflation. Royalties, exchange losses and interest paid to foreign affiliates are now fully deductible without restrictions. A minimum tax on assets has been established, which is equivalent to two percent of net assets adjusted for inflation. The base to calculate business equity now does exclude 50 percent of debts to bank and creditors.

Source: lowtax.net