Nevis tax system: audit, reporting and optimization of taxation of Nevis companies and individuals: VAT, income tax and capital gains
Basic taxes (briefly)
|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|
|Stamp duty||Stamp duty is payable at various rates for real estate transactions.|
International tax agreement
|Denmark, Norway, Sweden, Switzerland, the United Kingdom and the United States of America|
|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|
The employment income of individuals is not subject to personal income tax.
However, in addition to social security contributions earnings are subject to housing and social development levy. For employers, the rate is 3%. Employees are charged at the rate of 3.5% on monthly earnings ranging from XCD (East Caribbean Dollar) 1,000 to 6,500, 10% on earnings from XCD 6,500 to 8,000, and 12% on earnings over XCD 8,000.
The income of individuals from any business that includes trade, professional services, or any kind of entrepreneurship, but does not include employment, is taxed at the rate of 4% on the revenue less XCD 12,500 for trading business and less XCD 2,000 for business of providing services. Entrepreneurs have the right to switch (only once) from this tax regime to the payment of corporate income tax.
Corporate income tax
Resident companies pay tax on their worldwide income and non-residents on income sourced within the country.
The corporate income tax rate is 33%.
Until recently, companies that did not do business in the country or only did business with foreign counterparties were exempt from tax. This regime does not apply to newly incorporated companies and from July 2021 ceases to apply to companies incorporated before 31 December 2018.
Gains from the sale of assets held for up to a year are taxed at half the tax rate, but in any case, at no more than 20%.
Withholding tax on dividends, interest, and royalties is levied at the rate of 15%.
Withholding tax may also be levied on some other types of income.
The standard VAT rate is 17%.
A reduced rate of 10% applies in the tourist and hospitality industry.
Social security contributions
Social security contributions are paid on the earnings at the rate of 5% by employers and at the rate of 5% by employees. The maximum monthly earnings used to calculate contributions are XCD 6,500.
There are other contributions too, in particular, contributions to the Severance Payments Fund (1% for the employer) and employment injury coverage (1% for the employer).
There is a housing and social development levy. For employers, the rate is 3%. For employees, the contribution is levied at progressive rates: 3.5% for monthly earnings from XCD 1,000 to 6,500; 10% for earnings from XCD 6,500 to 8,000, and 12% for earnings over XCD 8,000.
This tax is levied on the market value of the property. Residential property is taxed at 0.2% rate and commercial property – at 0.3% rate.
There are exemptions.
Stamp duty is payable at various rates on real estate transactions.
Stamp duty may also be charged on certain other transactions.
Double taxation treaties
Nevis has entered into the following tax information exchange arrangements:
6 DTC: Denmark, Norway, Sweden, Switzerland, the United Kingdom and the United States of America.
: 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 transactions can generally be made without restrictions.
Taxes of Saint Kitts and Nevis
|Min. rate for corporate tax||33%|
|Capital gains tax||20%|