St. Kitts Investment Promotion Agency

Investor's Guide: Incentives

The Government of St. Kitts has a favourable attitude towards investments that have had a positive impact on the citizens. In an effort to encourage such investments the government provides generous incentive packages.

Corporate Tax Incentives

Under the Fiscal Incentives Act, four types of enterprise qualify for tax holidays. The length of the tax holiday for the first three depends on the amount of value added in St. Kitts & Nevis. The fourth type, known as enclave industry, must produce goods exclusively for export outside the CARICOM region.

Enterprise	Value Added	Maximum Tax Holiday
Group I	50% or more	15 years
Group II	25% to 50%	12 years
Group III	10% to 25%	10 years
Enclave	Enclave	15 years

Export Allowance
St. Kitts provides companies with a further tax concession effective at the end of the tax holiday period. In effect it is a rebate of a portion of the income tax paid based on export profits as a percentage of total profits.

Rebate of Income Tax
% of Total Profits	% of tax Export Profits
10% to 20%	25%
21% to 40%	35%
41% to 60%	45%
More than 60%	50%

Exemption from Import Duties
Full exemption from import duties on parts, raw materials, and production machinery is also available.

Hotels Aids Act
The Hotel Aids Act provides relief from customs duties on items brought into the country for use in construction, extension and equipping of a hotel of not less than 10 bedrooms. In addition, the Income Tax Act provides special tax relief benefits for hotels of more than 30 bedrooms. These hotels are exempt from income tax for 10 years. If the hotel contains less than 30 bedrooms, gains or profits would be exempt from income tax for 5 years.

Repatriation of Profits
Companies registered in St. Kitts can repatriate all profits, dividends and import capital.