Saint Kitts: Domestic Corporate Taxation
Corporate Income Tax
Corporate Income Tax has been reduced in the last few years from 40% to 38% and now to 35%. Many businesses may qualify for development and tax concessions under the fiscal incentives act.
Taxation is based on financial statements adjusted for inflation. Royalties, exchange losses and interest paid to foreign affiliates are fully deductible without restrictions. A minimum tax on assets has been established, which is equivalent to two percent of net assets adjusted for inflation. The base to calculate business equity now does exclude 50 percent of debts to bank and creditors.