Saint Kitts: Personal Taxation
This page was last updated on 12 Sept 2018.
TThere is no personal income tax in St Kitts and Nevis, but foreign nationals working in the country must obtain a work permit, the annual fee for which can be up to EC$2,500 (US$926).
From January 2011, employed individuals earning between EC$1,000 and EC$6,500 pay 3.5% (3% previously) of gross wages as social security contributions. Those earning between EC$6,500 and EC$8,000 pay 10% (8% previously), and income over EC$8,000 is subject to contributions of 12% (10% previously).
A system of value-added tax came into force on 1 November 2010. In the 2008 budget, Douglas announced a review of the jurisdiction's tax system, and revealed that the government was exploring the merits of introducing a system of value-added tax. The standard VAT rate is 17%, with bread, flour, fuel, infant formula and a number of other items zero-rated. Exemptions apply to articles, books, education services and several other items/services.
The VAT consolidates a wide range of taxes including consumption tax, mercantile tax, traders tax, hotel room tax, island enhancement fund, travel tax, insurance premium fee, parcel tax, vehicle rental tax, overseas call and telecommunication fee, export duty and rum duty.
In April 2009 St. Kitts and Nevis Minister of Finance, Timothy Harris announced the introduction of a tax amnesty which would allow taxpayers, until September 30, 2009, to settle outstanding debts, as outlined in the 2009 budget. The tax amnesty was offered to both registered and unregistered taxpayers.
The group of 18 taxes to which the amnesty applied was comprised of corporate income tax; traders tax; consumption tax on services; hotel room and restaurant tax; insurance premium tax; gaming machine tax; insurance registration fee; travel tax; vehicle rental levy; island enhancement levy; withholding tax; property tax; tax on lottery proceeds; business and occupation licence; radio licence; telecom services licence; and insurance licence.
Pointing to the methodology that was being adopted, he explained that the government was offering taxpayers with arrears the opportunity to pay off their taxes without interest and any penalties.
Taxpayers, wanting to take advantage of this limited time offer, could visit the Inland Revenue Department to verify their tax balances. Taxpayers living abroad were also encouraged to submit their requests, in writing, to the Inland Revenue Department, in order to be considered under the amnesty programme. Alternatively, overseas based taxpayers could authorize a representative residing in the federation, to act on their behalf, noted the government.