Saint Vincent and the Grenadines: Domestic Taxation
Income tax is levied on all persons whose chargeable income is more than EC$18,000 per annum. Rates range from 10% to 32.5%. There is no capital gains tax.
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.
In addition to this, some commodities - including cars, petrol products, alcohol and cigarettes - are subject to an Excise Tax (at varying rates).
National Insurance (social security) Contributions are payable from salary up to EC$51,996 per annum at the following rates (2011):
- Employer: 4.5%
- Employee: 3.5%
Foreign nationals working in Saint Vincent and The Grenadines are subject to the same tax rate as nationals.