The Nevis Inland Revenue Department is introducing a new Corporation Tax Return
The Nevis Inland Revenue Department is introducing a new Corporation Tax Return (Form CIT-101) for completion annually by all Nevis Exempt Companies, International Business Corporations (NBC’s) and Limited Liability Companies (NLLC’s) registered on the island on or before December 31, 2019. Registrations after that date will be required to file the form annually commencing in the year following organisation. Together with the ongoing program of tax reform in St. Kitts and Nevis the form is also aimed at detecting base erosion and profit shifting through these entities. Regarding the matter of tax reform amendments to the Nevis Business Corporations Ordinance and Nevis Limited Liability Companies Ordinance are being drafted to enshrine the concept of tax neutrality for those entities.
Nevis Exempt Companies, NBC’s and NLLC’s will be required to file the CIT-101 Tax Return electronically, via a link provided by the St. Kitts and Nevis Inland Revenue Department (SKNIRD). This link and instructions will be provided to the Registered Agents who will be required to file the information for all managed entities. Initial filings must be submitted to the SKNIRD no later than 31st October 2020.
As part of the program of tax reform in St. Kitts and Nevis the jurisdiction is moving towards a territorial system of taxation based on the concept of mind and management. That is to say that only entities managed and controlled in the jurisdiction will be subject to taxation there (although they will continue to be required to file form CIT-101). It will therefore be important in future to be capable of demonstrating that your Nevis NBC’s and NLLC’s have no income arising in St. Kitts and Nevis and the management and control are exercised outside the jurisdiction.