Nevis

Basic taxes (briefly)

Personal tax No
Corporate tax (in detail) Resident companies pay tax on global income, non-residents - on income from sources in the country. The income tax rate is 33%.
Capital gains tax. Details Gains from the sale of assets with a holding period of up to a year are taxed at half the tax rate, in any case not more than 20%.
VAT. Details The standard VAT rate is 17%. A preferential rate of 10% applies to the tourism and hospitality industry.
Other taxes Social contributions, Real estate tax
Government fee
Stamp duty Stamp duty is payable at various rates for real estate transactions.

International tax agreement

Tax treaties entered 14: Switzerland, Trinidad and Tobago
   
Tax Exchange Information Agreement (TEIA) 24: Aruba, Australia, Belgium, Canada, Curaçao, Denmark, Faroe Islands, Finland, France, Germany, Greenland, Guernsey, Iceland, India, Ireland, Liechtenstein, Netherlands, New Zealand, Norway, Portugal, Saint Maarten, South Africa, Sweden, United Kingdom


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TAXATION

General Info

Any NBC which does no business in Nevis shall not be subject to any corporate tax, income tax, withholding tax, stamp tax, asset tax, exchange controls, or other fees or taxes based upon or measured by assets or income originating outside of Nevis or in connection with other activities outside of Nevis.

Personal Income Tax

There is no personal income tax in Nevis.

Corporate Tax

Nevisian IBC is not subject to corporation tax if it does no business in Nevis. Those companies that carry out business in Nevis are taxed at a rate of 33% (from the 2013 income year). A resident company is taxed on worldwide income. A nonresident company is taxed on income derived or sourced from Nevis. Taxable income is calculated as net profit before tax, adjusted for nondeductible expenses and allowable deductions.

Dividends

Dividends paid by a resident company to another resident company are subject to corporation tax.

Capital gains tax

Capital gains are not subject to tax unless the asset is sold within one year of purchase. When applicable, capital gains tax is the lower of half of the effective St. Kitts & Nevis corporation tax rate for the year or 20%.

Losses

Losses can be carried forward for up to five years. The carryback of losses is not permitted.

Tax year

The tax year is based on a company’s fiscal year end.

VAT

VAT applies on sales of goods or supplies of services within Nevis and on imports of goods into Nevis. As NBCs are not supposed to do business in Nevis, they are exempt from VAT.
The standard rate is 17%, and a reduced rate of 10% applies within the tourism sector. Certain goods and services may be zero-rated or exempt.

VAT Registration

The registration threshold is a total value of supplies in a 12-month period that exceeds XCD 96,000 for specific professional services and XCD 150,000 for other business. Voluntary registration may be allowed at the discretion of the Comptroller of Inland Revenue.

VAT tax period and returns

Returns and payments must be submitted for each calendar month by the 15th day of the following month.

Withholding tax

Dividends, interest, royalties, and technical service fees paid to nonresidents are subject to withholding tax at a rate of 10%.
NBCs that do no business in Nevis are not subject to withholding tax.

Stamp duty

Stamp duty on the transfer of real property ranges from 2% to 18.5%, depending on the consideration and/or the location of the property. This duty is payable by the seller. Nonresident purchasers must obtain an alien landholding license at a cost of the greater of 10% of the value of the property or XCD 750. Stamp duty on the transfer of shares is 2%, payable by the seller.
NBCs that do no business in Nevis are not subject to stamp duty.

Government fee

Every corporation in Nevis shall pay to the Minister of Finance an annual registration fee of 200 US dollars.

Other taxes and duties

Real property tax assessed on the market value of real property and ranges from 0.2% to 0.3%, depending on the property’s use and location.
Unincorporated Business Tax (UBT) levied on the income of all unincorporated businesses. UBT applies on monthly receipts at a rate of 4% on the supply of goods over XCD 12,500 and 4% on the supply of services above XCD 2,000.
Social security contribution Employers must contribute 5% of employee earnings to social security and 1% of employee earnings for employment injury benefits. Employees contribute 5% of earnings to social security.

NBCs that do no business in Nevis are not subject to abovementioned taxes.

Anti-avoidance rules

There are no anti-avoidance rules in Nevis.

Double Tax Agreements

Saint Kitts and Nevis have entered a whole range of double tax and tax information exchange mechanisms:
  • 13 DTC: Antigua and Barbuda, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Monaco, Saint Lucia, Saint Vincent and the Grenadines, San Marino, Switzerland, Trinidad and Tobago;
  • 21 TIEA: Aruba, Australia, Belgium, Canada, Curaçao, Denmark, Faroe Islands, Finland, France, Germany, Greenland, Guernsey, Iceland, Liechtenstein, Netherlands, New Zealand, Norway, Portugal, Saint Maarten, Sweden, United Kingdom

Foreign exchange control

There is no exchange control in Nevis.

ACCOUNTS

Accounting records

Nevis companies records and accounts do not have to be held or filed with the authorities. If the shareholders, directors or officers decide to maintain such records or accounts, these may be held anywhere in the world.

Financial statements

NBCs are not required to prepare and file financial statements.

Annual Return

Generally speaking, Annual Return is a short review on the current state of the company, which is prepared by the company secretary annually. As a rule it includes the following information:
  • Incorporation information (registration date, registered address);
  • Information about directors and their resignation;
  • Information about secretaries and their resignation;
  • Information about registered capital, nominal value of shares and amount of issued shares;
  • Information about shareholders and share transfer.


NBCs are not required to prepare and file annual return.

Tax returns

NBCs are not required to prepare and file tax return.
Those companies that are subject to tax liability due to doing business in Nevis, should file tax return by the 15th day of the fourth month after the company's year-end, along with financial statements. The penalty for late filing is 5% of the tax owed, plus 1% of the tax owed for each month the return is outstanding.

    Taxes of Saint Kitts and Nevis

    Min. rate for corporate tax 33%
    Capital gains tax 20%
    VAT 17%
    Withholding tax 15%/15%/15%
    Exchange control No
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