Saint Vincent and the Grenadines: Domestic Taxation
Domestic Corporate Taxation
International entities registered in Saint Vincent and the Grenadines are not subject to taxation. Favourable tax laws are common also in the domestic economy, where there is no capital gains tax, no inheritance tax, no tax on dividends and corporate tax ranges from 10 – 37.5% (although Budget 2007 saw a commitment to reduce the upper level to 30% over the coming years). There is no capital gains tax.
Withholding Tax rates are as follows:
- Royalties and management charges 20%;
- Property Rental 10%;
- Other Payments 10%
There is a Property Tax of 5% of assessed value.
Companies granted Fiscal Incentives are exempted from paying corporate tax, but foreign nationals working in Saint Vincent and The Grenadines are subject to the same tax rate as nationals. See Personal Taxation for details.
A Value Added Tax (VAT) was introduced on 1 May 2007. The introduction of VAT replaced the five different consumption taxes, which were charged at rates of up to 55%, with one tax at a standard rate of 15%.
Although the standard rate is 15%, there is a reduced rate of 10% for hotel accommodation.