Nevis is updating its legislative and regulatory framework commitments to the European Union Code of Conduct Group (EUCoCG) under its Tax Governance Initiative and at the same time to the OECD Base Erosion and Profit Shifting (BEPS) Inclusive Framework.

The parliament recently passed the Nevis Business Corporation (Amendment) Ordinance, 2018, and the Nevis Limited Liability Company (Amendment) Ordinance, 2018.

Under these amendments, LLCs and corporations incorporated on or before December 31, 2018, will still enjoy full tax exemptions until June 30, 2021, provided that they do not carry out business in Saint Kitts & Nevis.

LLCs and companies incorporated after December 31, 2018, will be subject to the local tax regime (currently, 33% tax on worldwide income). The amendments have also abolished the preferential tax regime for companies incorporated by non-residents that obtained a tax resident status.

However, the Nevis Island Administration is expected to shortly introduce additional legislation to implement a local territorial tax system for corporations and LLCs established from 1 January 2019, similar to the introduced in the above-mentioned amendments for companies incorporated on or before December 31, 2018. Therefore, income derived from foreign-sources would not be subject to taxation.

For more information, please visit our  Valsen Fiduciaries’ Nevis offering, or contact us.