Investor's Guide: Taxation

Personal Income Tax
There is no personal income tax in St. Kitts.

Corporate Income Tax
(Income Tax Act – No. 17 of 1966 as amended) 

Corporate tax is 35% of net profits. Qualified companies enjoy full exemption from taxes on corporate profits for a period not exceeding 15 years. Corporate tax does not apply to exempt companies or to enterprises that have been granted tax concession.

Withholding Tax
(Income Tax Amendment Act No. 14 of 1980)

Individuals and ordinary companies remitting payments to persons outside of St. Kitts must deduct 10% withholding tax from the following: 

• Profits
• Administration, management or head office expenses
• Technical services fees
• Accounting and audit expenses
• Royalties
• Non-life insurance premiums
• Rent

Withholding tax does not apply to profits of an approved enterprise, which is enjoying benefits under the Fiscal Incentives Act. This tax does not apply to exempt trusts, limited partnerships, companies or foundations.

Consumption Tax
(Consumption Tax Act – No. 5 of 1974 as amended)

This tax is levied on the gross revenue of services provided by professionals such as Doctors, Lawyers, Dentists, and other specified persons listed in the Schedule to the Consumption Tax Act at a rate of 4%.

Hotel Room Tax & Restaurant Tax
(Hotel Accommodation Tax Act – No. 12 of 1976 as amended)

This is a tax levied on the total accommodation charges of a hotel or guest house and on the cost of food and beverage sold by a restaurant. The total rate of tax is 9% (with 2% contributing to the Hotel and Accommodation Enhancement Levy). This tax is levied on the total accommodation.

Entertainment Tax
(Public Entertainment and Lotteries Act – No. 15 of 1968 as amended)

This tax is charged at a rate of 10% on admission fees to places of entertainment except in cases where exemption is granted. Arrangements must be made with the Inland revenue Department before the commencement date of the function.

 Alien Landholding Licence
(Alien Landholding Regulation Act – CAP 102 as amended)

An Alien Landholding Licence is required for:

• A foreign person purchasing land in St. Kitts
• A foreign person desirous of acquiring 1/3 or more of the shares in an ordinary company
• A foreign person desirous of becoming a director of an ordinary company

Foreign investors buying land are charged an Alien Landholding fee of 10% of the value of the land being purchased.

A foreign investor desirous of acquiring 1/3 or more of the shares in an ordinary company or becoming a director of an ordinary company is required to pay a fee of EC $250.00 per application.