INCOME TAX
WHO IS LIABLE FOR CORPORATE INCOME TAX?
Any company registered or incorporated under the Companies Act CAP 20.22. A corporation is required to file even if no business transactions has occurred during the year or if a tax holiday or an exemption was granted. Remember there are penalties if a tax holiday or an exempt company does not file on time.
WHEN IS THE TAX RETURN DUE?
Companies are required to file 3 1/2 months after the end of their fiscal year.
Filing is based on the regular periods, which normally runs from 1st January to 31st December. Companies desirous of using a different reporting period commencing any month outside of January and concluding 12 months after, must request permission from the Comptroller of Inland Revenue.
CAN AN EXTENSION TO FILE BE GRANTED?
An extension may be granted at the sole discretion of the Comptroller. To obtain consideration for an extension, the taxpayer must make an application in writing to the Comptroller outlining the specific reason requested for the extension.
WHAT HAPPENS IF A COMPANY FAILS TO FILE A RETURN?
If a taxpayer fails to file a return as required, the Comptroller has the authority to make an assessment based on whatever relevant information may be available at that time or to make an assessment to the best of the Comptroller’s judgment. As long as the return remains unfiled, the Comptroller can indefinitely reassess the ‘best judgment assessment’, as many times, as new information is discovered. Remember there are penalties if a company does not file on time.
WHAT IS AN INCOME TAX INSTALLMENT?
An installment is a prepayment of taxes. An installment for income tax is an amount equal to one quarter of the tax as estimated by the taxpayer at the rate of 33% on their chargeable income for that year.
WHEN ARE INSTALLMENTS DUE FOR INCOME TAX?
Generally, taxpayers are required to pay their Corporate Income tax in installments. Installments are due on the 15th day of each calendar year quarter.
March 15th
June 15th
Sept 15th
Dec 15th
Section 44 (6) of the Income Tax Act Amendment Act No. 6 of 2006 states;, any balance owing on a Corporate Income Tax Return is due on the filing deadline of the return. If payment is received after that date, interest will be charged commencing on the filing deadline and will be charged up until the amount owing has been fully paid.
WHAT ARE SOME OF THE PENALTIES FOR CORPORATE INCOME TAX?
Any person who fails to file a return on or before the date on which filing is due, is liable for:
• Penalty of 10% of the amount tax owing.
• $100 per month or part thereof during which failure to file continues.
• $1000 per month or part thereof during which failure to file continues by a person who is exempt from the payment of any tax.
• Underpayment of tax as a result of an incorrect statement or material omission in the taxpayer’s return attracts a penalty of 25% of the sum underreported.
• Any person who knowingly makes false statement or false representation, concerning income on which tax is payable, commits an offence and is liable to a fine not exceeding $50,000 or imprisonment with or without hard labor for a term exceeding 12 months.
WHAT MUST BE SUBMITTED WHEN FILING CORPORATE INCOME TAX?
• Returns must be accompanied by the company’s
• Financial Statements
• Statement of Financial Position (Balance Sheet)
• Statement of Comprehensive Income (Profit and Loss)
• Cash Flow Statement
• Statement of Retained Earnings
• Notes and Disclosures to Financial Statement
WHAT RECORDS SHOULD BE KEPT AND FOR HOW LONG?
Taxpayers are required to keep all documents and records to support the Corporate Income Tax Returns filed for a minimum of six years after the date on which the original tax return was required to be filed.
WHO CAN BE AUDITED?
Any corporation which was incorporated in St. Kitts and Nevis or individual operating a business can be audited by the Inland Revenue Department.
WHAT KIND OF ACCOUNTING SYSTEM SHOULD I USE?
Taxpayers are required by law to keep in the English language a proper set of books of accounts. There are many systems available that will meet the book of accounts standards required by the tax legislation, both computerized and manual.
DO FINANCIAL STATEMENTS HAVE TO AUDITED?
Taxpayers are required to file Audited Financial Statements using IFRS or other recognized GAAP requirements for submissions to the Inland Revenue Department. These financial statements must be compiled by an independent third party. The Inland Revenue Department will also accept compilations and reviews that are performed using IFRS and other recognized GAAP requirements by an independent third party.
DRIVERS' LICENCE
WHAT IS THE COST TO RENEW DRIVER'S LICENCE?
The Drivers’ licence Fees payable are as follows;
| LICENCE TYPE
| LICENCE FEE
|
| Learners Permit |
$62.50 |
| First Licence |
$162.50 |
| Licence Renewal (3 Year Licence) |
$187.50 |
| Instructors Licence |
$62.50 |
| Lost/Stolen/Misplaced |
$75.00 |
| Upgrade Licence |
$68.75 |
| Temporary Licence |
3 months - $62.50 or 1 year - $125.00 |
WHEN WILL MY DRIVER LICENCE EXPIRE?
All Drivers’ Licence issued by the Inland Revenue Department has a maximum duration of 3 years. Each license is set to expire the day before the holders' birthday.
IS THERE A LATE FEE FOR NOT RENEWING YOUR DRIVER'S LICENCE AFTER IT EXPIRES?
No, however it is an offence to operate a motor vehicle with an expired Driver’s Licence. There are implications associated with such, renewing your licence late will result in your licence duration being less than the three allotted years.
CAN I RENEW MY ST. KITTS AND NEVIS DRIVERS' LICENCE WHILE ABROAD?
Yes, the procedure below gives details as to the entire process.
Click the link below:
https://www.sknird.com/formguide-showformguide-20.aspx
MOTOR VEHICLE LICENCE
WHAT IS THE COST TO LICENCE OR RENEW MY VEHICLE?
Weight and rate of vehicle licence fees schedule:
| WEIGHT/LBS
| 1 YEAR
| 3/4 YEAR
| 1/2 YEAR
| 1/4 YEAR
|
| Motor Cycle |
$186.00 |
$139.50 |
$93.00 |
$46.50 |
| Motor Cycle (with side) |
$218.00 |
$163.50 |
$190.00 |
$54.50 |
| Motor Vehicles - 1120 |
$287.00 |
$215.25 |
$143.50 |
$71.50 |
| 1121-2240 |
$325.00 |
$243.75 |
$162.50 |
$81.25 |
| 2241-4480 |
$362.00 |
$271.50 |
$181.00 |
$90.50 |
| 4481-6720 |
$400.00 |
$300.00 |
$200.00 |
$100.00 |
| 6721-7840 |
$431.00 |
$323.25 |
$215.50 |
$107.75 |
| 7841-8960 |
$468.00 |
$351.00 |
$234.00 |
$117.00 |
| 8961-100800 |
$500.00 |
$375.00 |
$250.00 |
$125.00 |
| 10081-11200 |
$575.00 |
$391.25 |
$287.50 |
$143.75 |
| 11201-12320 (Plus $2500) |
$593.00 |
$444.75 |
$296.50 |
$148.75 |
| 12321-13440 (Plus $2500) |
$687.00 |
$515.25 |
$343.50 |
$171.50 |
| 13441 & Over (Plus $2500) |
$1100.00 |
$825.00 |
$550.00 |
$275.00 |
| Trailers under 2240 |
$150.00 |
$112.50 |
$75.00 |
$37.50 |
| Trailers over 2240 |
$250.00 |
$187.50 |
$125.00 |
$62.50 |
| All vehicles must be licence upon purchase before the owner drives the vehicle.* |
ARE THERE FEES FOR LATE PAYMENT OF WHEEL?
There is a 1% interest charge if you renew after its expiry date.
PROPERTY TAX
WHEN IS MY PROPERTY TAX DUE?
Property Tax is due on or before 30th June of each year. Bills are mailed by the first day of May. If you do not receive your bill by the first day of June please contact the Inland Revenue Department.
WHAT IS THE RATE OF TAX APPLIED TO PROPERTIES?
The Property Tax Act Cap 20.32 states that each property must be categorized in at least one valuation class in accordance with the property's use. The table below shows the five different valuation classes and the applicable tax rate.
| VALUATION CLASS
| RATE APPLICABLE
|
| Residential |
0.002% |
| Commercial |
0.003% |
| Accommodation |
0.003% |
| Institutional |
0.00% |
| Agriculture |
0.00% |
HOW IS PROPERTY TAX CALCULATED?
Example of calculation of tax on a residential property with market value $140,000.00 (building value $120,000 and land value $20,000)
| Building Value
| $120,000.00
|
| Exemption |
- $80,000.00 |
| Taxable building value |
$40,000.00 |
| |
x 0.002% |
| Tax on building |
$80.00 |
| Land value |
$20,000.00 |
| |
x 0.002% |
| Tax on land |
$40.00 |
| Tax on building |
$80.00 |
| Tax on land |
$40.00 |
| Tax Due |
$120.00 |
WHAT ARE THE PENALTIES AND INTEREST CHARGES ASSOCIATED WITH PROPERTY TAX?
The charges are as follows:
1% per month or 12% per annum .
WHAT HAPPENS IF I DO NOT PAY MY PROPERTY TAX?
Where taxpayers default on paying their property tax, the Comptroller reserves the right to prepare a certificate confirming the default and send it to the Provost Marshall where the remedy may be either sale by public auction of the property itself or part thereof or seizure and sale of goods and chattels of the owner.