- May 24, 2013
- |Investor's Guide
Personal Income Tax
There is no personal income tax in St. Kitts.
Corporate Income Tax
(Income Tax Act – No. 17 of 1966 as amended)
Corporate tax is 33% of net profits. Qualified companies enjoy full exemption from taxes on corporate profits for a period not exceeding 15 years. Corporate tax does not apply to exempt companies or to enterprises that have been granted tax concession.
Value Added Tax
(Value Added Tax Act No 3 of 2010)
VAT or Value Added Tax is a tax on consumption. It is charged on the value of imports and on the value added (mark-up) on goods and services supplied by one business to another or to the final consumer. The tax is levied on imports, transactions between businesses and the final consumer and transactions with the Government.
The standard VAT rate is 17%. A special rate of 10% is extended to hotels, restaurants and tour operators.
(Income Tax Amendment Act No. 14 of 1980)
Individuals and ordinary companies remitting payments to persons outside of St. Kitts must deduct 10% withholding tax from the following:
- Administration, management or head office expenses
- Technical services fees
- Accounting and audit expenses
- Non-life insurance premiums
Withholding tax does not apply to profits of an approved enterprise, which is enjoying benefits under the Fiscal Incentives Act. This tax does not apply to exempt trusts, limited partnerships, companies or foundations.
Alien Landholding Licence
(Alien Landholding Regulation Act – CAP 102 as amended)
An Alien Landholding Licence is required for:
- A foreign person purchasing land in St. Kitts
- A foreign person desirous of acquiring 1/3 or more of the shares in an ordinary company
- A foreign person desirous of becoming a director of an ordinary company
Foreign investors buying land are charged an Alien Landholding fee of 10% of the value of the land being purchased.
A foreign investor desirous of acquiring 1/3 or more of the shares in an ordinary company or becoming a director of an ordinary company is required to pay a fee of EC $250.00 per application.