Tax Changes Introduced at the End of 2020
In late 2020, the St Kitts & Nevis Inland Revenue Department (IRD) issued guidance notes regarding the treatment of international companies in relation to federal tax.
- Where a company is managed and controlled outside the Federation, for example in Europe, and the company does not have a permanent establishment in St Kitts & Nevis (just a registered office and registered agent), the company is classified as 'non-resident', and is only subject to tax on income arising in St Kitts & Nevis.
All companies must complete a simplified annual tax declaration, in which they state whether there are local connections or whether the company should be considered non-resident, and will not therefore be subject to tax in Nevis.
It is anticipated that these guidelines will formally become law during 2021.
- Nevis has no public or Government registers for directors, shareholders or beneficial owners. All information is maintained at the registered office, of the company, by the registered agent.
- Corporate records can be kept anywhere in the world, but must be readily available to the registered agent, if required.
Incorporation and Maintenance of Nevis International Companies
- Nevis structures can be established within 24 hours.
- Sole directors are permissible, with no obligation to appoint officers.
- Company names can be reserved instantly and free of charge, for up to 10 days.
- As the Registry is smaller than in many comparable jurisdictions, there is a much wider selection of names available.
- Certificates of 'Incumbency and Good Standing' can be issued with Apostille within 48 hours.
- Companies can be incorporated to conduct any lawful business.
- The directors and officers can be located anywhere in the world and can be a person or legal entity.
- Authorised share capital can be denominated in any recognised currency.
- The procedures for Nevis IBCs to amend their articles of incorporation, merge, or consolidate with foreign corporations or other Nevis corporations, are relatively simple.
- It is easy to redomicile foreign entities into and out of Nevis and 'emergency redomicile', is available for foreign entities, if required.
- St Kitts & Nevis has a number of consulates overseas, including one in Dubai. This makes legalisation of company documents in these locations easier and significantly less expensive than for other jurisdictions.
- Nevis Limited Liability Corporations (LLCs), can easily be converted into IBCs.
- There is no obligation to file annual returns or financial statements.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.