INVESTMENT SECTORS

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CONCESSIONS

Concessions are an important tool in the development process; it allows Government to direct the economy along a predetermined path and ensures that everyone is afforded the opportunity to participate. The Nevis Island Administration (NIA) is keen on improving the quantity and quality of information available to the public at large. To this end, policies that have been implemented by the NIA over the years are being made available. The initiative is aimed at achieving transparency in the concessions on duties and taxes, which may be granted by the Administration.

List of Concessions

The core legal basis for the granting of concessions are made up of the following:

  • The Fiscal Incentives Act (FIA) 1974
  • The Customs Tariff Act, 1984
  • The Consumption Tax Act, 1974
  • The Hotels Aid Ordinance

Various provisions included in the Income Tax Act

  • Mercantile tax qualifying goods (Duty free shops)
  • Duty free concessions for returning nationals
  • Concessions on vehicle for use by churches
  • Concessions under the sporting goods agreement
  • Concessions on foodstuff
  • Duty free concessions for agricultural purposes
  • Travel tax and departure tax exemption
  • Duty free concessions to bona fide taxi operators
  • Concessions to small businesses

 

The Fiscal Incentives Act

The Fiscal Incentives Act (FIA) stipulates that the basic criteria for concessions to enterprises are based on what is termed “approved enterprises” and “approved products”. Eligible enterprises are classified in one of three classes depending on the amount of local value added in production, as in “enclave enterprises” produced solely for export. Concessions on import duty may be granted in cases where the goods in question are not available in Member States at comparable prices and qualities or in adequate quantities.

The scope of tax concessions allowed under the FIA is limited to the corporation tax under the Income Tax Act. Generally, if a concession is given for import duties, concession is also given for income tax.

Concessions relating to corporation tax are provided for in the FIA in the form of complete or partial exemptions for income taxes if incorporated businesses for a specified number of years. The duration of the “tax holiday” depends on the classification of the enterprise, the size of the investment and the number of persons to be employed.

In cases where losses are accumulated during the tax holidays, a loss carry-over during the subsequent five years is allowed. Capital expenditure incurred during the tax holiday is treated as having been incurred at the end of the tax holiday and normal capital allowances (but not the initial allowance) are given accordingly.

Concessions relating to import duties are provided for specified imports of approved enterprises, including unincorporated enterprises, on an ad hoc basis, and may include duties on plant, equipment, spare parts and raw materials. Concession is provided in full i.e. for the totality of the duty but does not include the consumption tax and service charge.

The FIA, as drafted, grants concessions for the construction and equipment of new enterprises or the expansion of exiting ones. The procedures are initiated by application from the enterprise and/or importer specifying, the local value added content of production, the expected employment effect and the wages expected to be paid. Upon evaluation by the Ministry of Finance, all relevant parties, including the Ministry of Finance makes the final decision regarding approval or rejection.

According to the FIA, the Authorities (the Ministry of Finance) are required to appraise the impact of the concession after 3 years and then every second year.

LIST OF CONDITIONAL DUTY EXEMPTIONS

For Industry, Agriculture, Fisheries, Forestry and Mining

  • Machinery and equipment, including equipment for the transportation of goods, and materials for use in approved industries, and parts thereof, agriculture (including livestock, fisheries (including aqua-culture), forestry and mining (including the exploration, exploitation and storage of geothermal energy), as approved by the Competent Authority; and
  • Building for installation or extension of industrial enterprises as approved by the competent authority.

For Purposes Connected With Tourism

Building materials for first installation of approved hotels, guest-houses and other facilities and attractions and approved renovations and extensions.; Equipment and appliances for initial equipping of approved hotels and for approved extensions and renovations; Equipment for use in sports and recreational activities as approved by the Competent Authority; and Motorcars and public transport-type passenger motor vehicles including coaches and minibuses for use as approved by the Competent Authority; Equipment for use in sports and recreational activities as approved by the Competent Authority; and Motorcars and public transport-type passenger motor vehicles including coaches and minibuses for use as approved by the Competent Authority.

For Shipping

  • Boats, boat and navigational equipment and boat fittings, sail canvas, marine engines, fuel and lubricants for services as approved by the Competent Authority.
  • Navigation aids.

For Approved Purposes Associated With Aircraft

Aircraft, competent parts, accessories, instruments grounds and technical equipment and motor vehicles for aircraft services and operations including air clubs, as are approved; Fuel lubricants for approved aircraft services and operations.

For Educational and Cultural Purposes

  • Supplies, equipment, instruments and apparatus, tools, books (including workbooks and activity books), specimens illustrate of natural history and sciences, for approved educational and cultural institutions and purposes , including for museums, zoos and historical societies; Materials for the construction, renovation and extension of approved educational and cultural institutions; Equipment and supplies for sports, as approved by the Competent Authority; exploration, exploitation and storage of geothermal energy, as approved by the competent Authority; and
  • Academic robes admitted as such by the Competent Authority.

 

For Health

  • Equipment and vehicles drugs, medical surgical and laboratory supplies for approved hospitals and veterinary institutions, including approved institutions providing outpatient health care; Materials for the construction, furnishing, replacement or extension of approved hospitals and veterinary institutions offering outpatients healthcare and furnishing for such health care facilities; Hearing aids, crutches manual and motorized wheelchairs, trusses, colostomy bags and similar appliances and apparatus, identifiable spare parts for the relief of permanent bodily disablement, including reading matter and articles specifically designed for the blind.
  • Other goods catering to the needs of the mentally or physically handicapped and admitted as such by the Competent Authority; Tools of trade for the disabled, admitted by the Competent Authority; and Ambulances.

The Hotels Aid Ordinance

  • Under the Hotels Aid Ordinance, imports of equipment and materials aimed at the construction or enlargements of hotels may be exempted from import duty. These concessions are granted in much the same way as the concessions under FIA, and the Ministry of Finance administers provisions.
  • The Hotels Aid Ordinance provides relief from customs duties and pier 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 Ordinance provides special tax relief benefits for a proprietor who has been granted a license under the Hotel Aids Ordinance. This stipulates that the gains of a hotel of more than 30 bedrooms are exempt from income tax for 10 years. If the hotel has less than 30 bedroom, gains or profits would be exempt from income tax for 5 years.

Income Tax Act

The Minister of Trade has power under the FIA to exempt companies from Corporation Tax for periods of up to ten, twelve or fifteen years (depending on various factors e.g. the local value added).

Duty Free Concessions for Returning Nationals

The Federal Cabinet introduced a policy of granting total duty free concession on household and personal items to nationals who lived abroad for ten years and are returning to the Federation to take up permanent residence. Returning Nationals should indicate the specific time they will take up permanent residence in Nevis.

Duty Free Concessions for Agricultural Purposes

Guideline for Granting Concessions

Application should be submitted to the Permanent Secretary, Ministry of Agriculture, who would seek the advice of the Department of Agriculture before submission to the Ministry of Finance, on the advice of the Ministry of Agriculture, shall grant duty free concession on the approved items. Applications for concession relating to new projects should be accompanied by a detailed project proposal.

TAXATION

Personal Income Tax

There is no personal income tax in Nevis.

Corporate Income Tax

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

Corporate tax is 33% 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.

Value Added Tax

(Value Added Tax Act No 3 of 2010)

VAT or Value Added Tax is a tax on consumption. It is charged on the value of imports and on the value added (mark-up) on goods and services supplied by one business to another or to the final consumer.

The tax is levied on imports, transactions between businesses, and the final consumer and transactions with the Government. The standard rate is 17%. A special rate of 10% is extended to hotels, restaurants, commercial rent and tour operators.

List of Concessions

The VAT Act replaces the following pieces of legislation:

  • Consumption Tax Act, Cap.20.02
  • Hotel Accommodation and Restaurant Tax Act,Cap.20.20
  • Traders Tax Act,Cap.20.46
  • Cable TV Tax Act
  • Self Drive Motor Vehicle(Rentals) (Tax)Act, Cap.20.37
  • Export Duty Act,Cap.20.12
  • Telecommunications Tax Act
  • Parcels Tax Act,Cap.20.30
  • Gaming Machine Tax Act
  • Public Entertainment and Lotteries Tax Act,Cap.20.34

Alien Landholding License

(Alien Landholding Regulation Act – CAP 102 as amended)

An Alien Landholding License (ALHL) is required for:

  • A foreign person to acquire and own property in Nevis
  • 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

The following supporting documentation will be needed for the processing of Alien Land Holding applications.

  1. Completed Questionnaire.
  2. Statutory declaration / Affidavit of Identity and Character.
  3. Certified copies of the identification pages of applicant passport.
  4. A copy of the Certificate of Incorporation where applicable.
  5. A copy of Certificate of Good Standing where applicable.
  6. A copy of the recent annual return of applicant if applicable.
  7. Maps, Plans of the land.

The Nevis Island Administration (NIA) reserves the right to request an original police record or certificate of each applicant from his or her own local Police Station/Department before the approval of the application.

NB. Where the application is for holding shares clearly state the number of shares to be allotted to the applicant.

The processing fee payable on all ALHL applications for the purchase of land or buildings will be EC$1,000.00, this includes permission for sale of land and or property.

The processing fee on all ALHL applications to hold shares in, and or act as a director of a local company will be EC$500.00.

Additionally, permission to sell shares in a local company will be EC$500.00. Permission to sell property will attract a fee of $1,000.00.

Processing fees will be per application and must be paid at the time that the application for ALHL is submitted. Cheques should be made payable to the Nevis Island Administration.

LABOUR FORCE

Nevis has a labour force of approximately 5,000 with a literacy rate of 98%. The country’s technical and training needs are met largely by the Sixth Form College and Clarence Fitzroy Bryant College.

Most of our professionals have been trained in the Caribbean, the United States of America, Canada and the United Kingdom prior to returning home.

INFRASTRUCTURE

 

Roads

Quality main road and secondary roads around the island. Two lanes are provided and we drive on the left.

Electricity

110 and 220V stable power supplied by Nevis Electricity Company (NEVLEC).

Water

The annual average precipitation is 1371.6mm or 45inches which is the main source of potable water. Other water sources include mountain springs, dams and wells. Bottled water is supplied by private companies.

WORK PERMITS

Non-nationals of St. Kitts and Nevis who reside legally and have applied to work in Nevis, work permit applications are available and are processed by the Premier’s Ministry of Nevis Island Administration, 2nd Floor, Social Security Building, Pinneys Estate, Nevis.

Work Permits

7 months – 1 year – $2500.00

3 – 6 months – $1300.00

1 – 2 months – $ 300.00/month

Persons who attended school on Nevis – $ 250.00 (before age 14)

Work Permit Requirements:

  1. Completed work permit form (sold at Premier’s Ministry for XCD $5.00)
  2. Medical:- Mantoux skin test. If reading is above 10mm a chest x-ray must be done. VDRL/RPR (Rapid Plasma Reagin) for syphilis
  3. Three passport sized photos
  4. Police record from country of usual residence, dated not more than 6 months
  5. Evidence of three weeks of advertisements(preferably in the newspaper)
  6. Notarized passport identification page

Travelling with Spouse

  • If married, and your spouse wishes to relocate with you, items 1-4 & 6 listed above, in addition to a birth certificate and marriage certificate are required. He/she must also complete the Temporary Residence Application Form.

Travelling with Child/Children

  • If travelling with your child/children one must present their immunization record(s), birth certificate(s), 2 passport sized photos, notarized passport data page(s), school transcript(s) if applicable, and the completed school attendance application forms. These are available at the Premier’s Ministry.

All documents should be presented in its original form or a certified true copy. This means that they should be notarized by a public notary.

Consultants, Professional Service Providers and Entertainers Requirements

  1. Three passport sized photos
  2. Police record from country of usual residence, dated not more than 6 months
  3. Notarized passport identification page

Consultancy & Professional Service – $ 500.00
(Trainers, Accountants, Photographers & General Managers)

Entertainers
i) 5 + persons (group fee) -$1000.00
ii) 1- 4 persons (group fee) -$ 250.00

C. Ministers of Religion – Free

D. Personnel Recruited by Government – Free

Fees for Residence Status

A. Application Fee (Permanent Residence) – $200.00 (not charged in Nevis)

B. Grant of Temporary Residence (without work) – $600.00 (7 months – 1 year) – $300.00 (6 months or less)

Who qualifies:
• Retired Expatriates.
• Non-nationals who rent (who have been visiting the island consecutively for 3 years or more) or own property here.
• Minors of work permit/residence permit holders under the age of 18 years.
• Persons who attended school on Nevis.
– Government Recruited Personnel – Free
– Bona Fide Ministers of Religion, Spouses & Dependents – Free

Temporary Residence requirements

  1. Birth Certificate
  2. Passport(s): Old & New
  3. Police record from country of usual residence dated not more than 6 months
  4. Marriage Certificate(if applicable)
  5. Divorce Decree(if applicable)
  6. Birth Certificate of Spouse
  7. Birth Certificate of each unmarried child under the age of 18 years
  8. Three passport sized photos
  9. Medical:- Mantoux skin test. If reading is above 10mm a chest x-ray must be done. VDRL/RPR (Rapid Plasma Reagin) for syphilis

C. Grant of Annual Residence (with work) – $1500.00 (annually); – $750.00 (3 to 6 months); $ 200.00/month (1 – 2 months)

Who qualifies:

Persons who have resided legally in the Federation for three (3) consecutive years.

  • Persons who have resided legally in the Federation for three (3) consecutive years.
  • Persons who attended school in the Federation.
  • Minor children of Permanent Residence holders who wish to work
  • Persons who held work permits in the Federation for three (3) consecutive years

Annual Residence Requirements:

  1. Birth Certificate
  2. Passport(s): Old & New
  3. Police record from country of usual residence, dated not more than 6 months
  4. Marriage Certificate(if applicable)
  5. Divorce Decree(if applicable)
  6. Birth Certificate of spouse
  7. Birth Certificate of each unmarried child under the age of 18 years
  8. Three passport sized photos
  9. Medical:- Mantoux skin test. If reading is above 10mm a chest x-ray must be done. VDRL/RPR(Rapid Plasma Reagin) for syphilis

D. Residence Permit via Marriage

Who qualifies: Spouses of Citizens – $500.00

Residence Permit Requirements

Applicant

  1. Birth Certificate
  2. Passport
  3. Police record from country of usual residence dated not more than 6 months
  4. Marriage Certificate
  5. Divorce Decree/Death Certificate (if applicable)
  6. Four passport sized photos
  7. Birth Certificate of each minor child

Citizen

  1. Birth Certificate
  2. One passport sized photo
  3. Divorce Decree/Death Certificate (if applicable)
  4. Passport
  5. Citizenship Certificate

Fees for Visa/entry

A. Entry Visa – Online/in Person $267.00 (Evisa.gov.kn) The fee is payable upon entry into the Federation

B. Entry Letter $100.00

C. Student Visa $400.00 (Does not apply to MUA students)

D. School Attendance: -Primary & Secondary $ 75.00 -Tertiary $400.00

E. Extension of Stay: – Monthly up to three months $ 55.00 – Monthly after 3 months $ 75.00 5 days grace period for application

OTHER

A. Late Fee $100.00 (A five days grace period is allowed. This fee is applicable for each year outstanding/part thereof)

B. Work Permit Forms $ 5.00

C. Work Permit IDs $ 25.00

Please note that all forms are available at the Premier’s Ministry, 2nd Floor Social Security Building, Pinneys Estate, Nevis.
Contact: 869-469-5521 ext 2003/2009