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Nevis Taxation and Confidentiality

Tax Advantages for Nevis International Companies

Confidentiality

Tax Advantages for Nevis International Companies

Nevis was one of the first jurisdictions in the Eastern Caribbean to realise the economic benefits of diversification through international financial services. The jurisdiction has a long history of addressing tax exemption through honest and fair regulation. Any corporation organised under the Nevis Business Corporation Ordinance or the Nevis Limited Liability Company Ordinance that does not carry on business in Nevis, is completely exempt from corporate, income, withholding, stamp, asset and other fees or taxes in the Federation based upon income or assets originating outside of Nevis or in connection with other activities outside of Nevis. Coupled with this significant freedom from taxation for companies deriving income from outside of Nevis, is the complete waiver of all Nevis exchange controls.

To qualify for these tax incentives is a simple procedure. A corporation is not considered to be doing business in Nevis solely because it engages in one or more of the following activities:

  • Maintains a bank account in Nevis
  • Holds meetings of directors or shareholders in Nevis
  • Keeps its corporate or financial records in Nevis
  • Runs an administrative or managerial office in Nevis with respect to assets or activities outside Nevis
  • Maintains a registered office in Nevis
  • Invests in stocks or entities of Nevis corporations or is a partner in a Nevis partnership or a beneficiary of a Nevis trust or estate

In addition, any dividend or distribution paid by a corporation having no business in Nevis to another corporation, entity or individual who is neither a citizen nor resident of Nevis, is exempt from Nevis withholding tax. The Ordinances also offer expeditious company formation procedures and do not require the disclosure of company ownership, management and financial records of any kind. They provide that the records, principal office and meetings of a Nevis company may be held anywhere in the world and they allow for the re-domiciliation of companies.


Confidentiality

Growth and Development of Nevis Financial Services

In 1985, the Federation of St. Kitts and Nevis passed The Confidentiality Act. Under penalty of mandatory imprisonment or fines, employees and officials are subject to its mandates. Though privacy is protected, this legislation does not prevent prosecution by foreign jurisdictions for tax evasion or other criminal activity.

Download a pdf of The Confidentiality Act, 1985