Nevis: Domestic Corporate Taxation
Unincorporated Business Tax
The Unincorporated Business Act 2010 was passed by the Federation National Assembly on October 26, 2010 and received the Governor General’s assent on October 28. The legislation imposes a 4% tax on every person carrying on business in St. Kitts and Nevis.
Part I of the Act stipulates that the tax does not apply to a company registered under the Companies Act or to a partnership which is treated as a company for purposes of the Income Tax Act, Cap. 20. 22, and is liable to tax under that Act.
The tax applies to any business, profession, trade, venture or undertaking, provision of personal services or technical and managerial skills, and any adventure or concern in the nature of trade, but does not include employment.
The tax base in relation to the supply of goods for a calendar month is the gross takings derived from the supply of goods for the month, reduced (but not below zero) by ECD12,500. In relation to the supply of services for a calendar month, the tax base is the gross takings derived from the supply of services for the month, reduced (but not below zero) by ECD2,000.
The Act further states that for the purposes of subsection (2), gross takings shall be taken into account for the month in which the goods or services are considered to be supplied for purposes of the value-added tax (or would be considered to be supplied for purposes of the value-added tax if the person making the supply were registered for VAT).
In the case of a business carried on by a partnership, each partner is liable for tax relating to the partner’s share of the gross receipts. The partnership may designate one partner to file the returns and pay the tax on behalf of the partners.
Every person carrying on business in Saint Kitts and Nevis who is liable to pay tax under the provisions of section 4 of the Act must, within fifteen days after the end of each calendar month, file a return with the Comptroller in a form to be approved by the Comptroller accompanied by payment of the tax due for that month.
The legislation also states that the provisions of the Tax Administration and Procedures Act, No. 12/2003, relating to the collection and payment of taxes, fees in nature of taxes, and fines or penalties, and such other related matters shall apply to this Act.