Introduction on St. Kitts Tax

tax policy

Personal Income Tax

There is no personal income tax in St. Kitts.

corporate income tax

Corporate income tax is 35% of net profit, and qualified companies enjoy full exemption from corporate profit tax for a period not exceeding 15 years. Corporate tax does not apply to exempt companies or businesses that have been granted tax incentives.

VAT

VAT is a tax on consumption. It depends on the value of imported goods and the added value of goods and services provided by one business to another or to the final consumer.

Imported goods are taxed in transactions between businesses, between businesses and final consumers, and between businesses and governments.

VAT is not an additional tax but a replacement for some existing indirect taxes.

The VAT law supersedes the following regulations:

The Excise Tax Act, Cap.20.02;

Hotel Accommodation and Dining Tax Act, Cap.20.20;

Trade Tax Act, Cap.20.46;

Cable TV Tax Act;

Self-Driving Vehicles (Rental) Tax Act, Cap.20.37;

Export Tariff Act, Cap.20.12;

Telecommunications Tax Act;

Parcel Tax Act, Cap.20.30;

Tax bill for gaming machines;

Public Entertainment and Gaming Tax Act, Cap.20.34.

The standard rate is 17%, with a special rate of 10% extended to hotel, restaurant and tour operators.

withholding tax

(Income Tax Amendment Act No. 14 of 1980)

10% withholding tax must be deducted for the following categories of fees paid by individuals and ordinary companies to persons outside St. Kitts:

profit;

Administrative, management or headquarters expenses;

Fees for technical services;

accounting and audit fees;

royalty

non-life insurance premiums;

rent.

Withholding tax does not apply to corporate profits that receive benefits under the Fiscal Incentive Act, nor does this tax code apply to exempt trusts, limited partnerships, corporations or foundations.

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