Once the endorsement does not result in a change in the value of the policy, the registration fee would not be changed. However, on renewal of policies the registration fee is applicable.

Kindly refer to the Insurance Act Cap 21.11 section 228 (3) which states
“Every insurer shall pay to the Accountant General a registration fee of two dollars for every one thousand dollars worth of insurance up to a maximum registration fee of thirty dollars per policy in respect of any insurance policy issued or applicable in Saint Christopher and Nevis.”

The insurance registration fee is based on the value of the policy issued.

The insurance registration fee is paid to the Department in the period in which the policy was issued.  For example, policies issued in October 2019 would be reported on the tax return covering the period 01 September – 30 November 2019 due December 16, 2019.

No, the insurance registration fee is not refundable on cancelled polices.

For third party policies that do not carry a policy value , the registration fee will be paid on the maximum liability the insurer will cover on the third party policy. 

Example: The sum insured is $14,600 (14.6).  The correct calculation of the tax: 14 x $2.00 = $28.00.  The registration fee for sum insured of $14,600 is 28.00.

The fee is payable on the sum insured (Value of policy).

For third party policies that do not carry a policy value, the registration fee will be paid on the maximum liability the insurer will cover on the third party policy.

For comprehensive policies which carry a value, the registration fee would be payable on the policy value (sum insured).

This fee is payable on any new policy and on any renewal of a policy.  Section 22 of the
Insurance Act states:
                      (22)     Effect of cancellation of registration
            (2)       For the purpose of subsection (1), an insurance company shall be treated as having entered into a new policy if a policy entered into prior to the date of the notification under section 23 is renewed or varied after that date.

The registration fee is paid on the value of the policy.

For third party policies that do not carry a policy value, the registration fee will be paid on the maximum liability the insurer will cover on the third-party policy. 

By registering to use the Inland Revenue Department's e-Services, you can file your tax returns and or make payments at any time and from any location.

Taxpayers are encouraged to ensure they are up to date with their tax filings and payments to avoid any delays in the issuance of their Tax Clearance Certificate. Certificates are only issued if all tax filings and payments have been made, or arrangements have been made to complete the filings and payments.

Taxpayers should first visit the customer service desk to make enquiries, verify outstanding amounts or obtain tax payment forms. Your next step is the cashier’s station to make payment.

Cash
Cheques (payable to Accountant General and from individuals or companies in good standing)
Credit or Debit cards (Visa /Master card only)
Money Orders
Wire Transfers

Payments are due monthly, quarterly and annually depending on the type of tax. For ease of reference please sees our Tax Calendar located on our website, www.sknird.com.

Overdue taxes increase over time due to fines, penalties and interest for non-payment. No matter how much time has passed, you are still responsible for any tax liability incurred by you or your business. It is advisable to pay your taxes immediately or make arrangements with Inland Revenue to pay over a short time period.

Yes, once the tax debt was incurred while the business was still operating you are responsible for payment. Overdue taxes increase over time due to fines, penalties and interest for non-payment. No matter how much time has passed, you are still responsible for any tax liability incurred by you or your business. It is advisable to pay your taxes immediately or make arrangements with Inland Revenue to pay over a short time period.

The Department empathizes with situations such as these, however, taxpayers in these circumstances should contact the Inland Revenue Department immediately. An officer will assist you in making the appropriate arrangements for filing and payment of taxes.

Breech in payment agreements, results in the Department recovering the tax using the recovery methods outlined in Part VI of the Tax Administration and Procedures CAP 20.52.

Payment Agreements which are not honored, results in the Inland Revenue Department recovering the full tax using the recovery methods outlined in Part VI of the Tax Administration and Procedures CAP 20.52.

Example: The sum insured is $14,600 (14.6). The correct calculation of the tax: 14 x $2.00 = $28.00. The registration fee for sum insured of $14,600 is 28.00.

“Every insurer shall pay to the Accountant General a registration fee of two dollars for every one thousand dollars worth of insurance up to a maximum registration fee of thirty dollars per policy in respect of any insurance policy issued or applicable in Saint Christopher and Nevis.”

If you fail to file when required, the Comptroller shall make an estimated assessment to determine the amount of tax payable.

In the case where the Comptroller has made an assessment to determine the amount of tax payable, he/his designate may enter your place of business and demand the amount of tax outstanding. Failure to comply with the request for payment may result in court action.

Yes, every taxpayer shall file a tax return for each tax period with the Comptroller after the end of the tax period, whether or not tax is payable.

Yes, a taxpayer may file an amended tax return no later than six years after the due date on which the original tax return was required to be file. The Comptroller may re-assess the taxpayer’s liability if he is satisfied that the previous assessment was incorrect.

A non-filer is a taxpayer who fails to voluntarily file a tax return and pay his/her taxes as required by law.

A Stop Filers are taxpayers/assesses who have discontinued filing returns. These were previously voluntary filers but for whatever reason have stopped submitting their returns as required by law.

A self-assessment occurs when the taxpayer calculates his/her tax liability, files the tax return and pays the applicable taxes. Be aware that these tax liabilities may be reassessed by the Comptroller if there is sufficient reason to do so.

After receiving a Best Judgment Assessment Notice or Any Notice of Assessment from the Inland Revenue Department, the taxpayer has 30 days in which to object. This objection must be in writing to the Comptroller of Inland Revenue. It is noteworthy that when filing an objection, you should provide documentation and the completed Tax Return Form for the period you are objecting, in order to validate your claim

A reassessment occurs when the taxpayer has filed his return and the Inland Revenue Department’s examination and computation of the tax liability, reveals an underassessment, overassessment or filing error which will lead to a reassessment of the tax liability. This may also be initiated as a result of an audit, an appeal or court action where the tax liability requires amendment based on a ruling.

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.

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.

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.

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.

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.

• 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

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.

Any corporation which was incorporated in St. Kitts and Nevis or individual operating a business can be audited by the Inland Revenue Department.

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.

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.

The Drivers’ licence Fees payable are as follows;

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.

Yes, the procedure below gives details as to the entire process. Click the link below: here

There is a 1% interest charge if you renew after its expiry date.

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.

Example of calculation of tax on a residential property with market value $140,000.00 (building value $120,000 and land value $20,000)

The charges are as follows: 1% per month or 12% per annum .

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.

Collection enforcement action begins when a taxpayer fails to file their tax returns and fails to pay their taxes on or before the due dates.

Any asset owned by the deceased person, in whole or in part, shall be used to recover the applicable taxes. If the deceased person has multiple creditors the Inland Revenue Department has the right to claim these assets before any other creditor.

Yes, once the tax debt was incurred while the business was still operating you are responsible for payment. Overdue taxes increase over time due to penalties and interest from non-payment. No matter how much time has passed, you are still responsible for any tax liability incurred by you or your business. It is advisable to pay your taxes immediately or make arrangements with Inland Revenue to pay over a short time period.

Breaking a payment agreement arrangement, results in the Inland Revenue Department recovering the tax using the recovery methods outlined in Part VI of the Tax Administration and Procedures CAP 20.52.

The Debt Management and Compliance Officer assists taxpayers who are (1) in arrears or (2) have not filed the mandatory tax returns. These officers engage taxpayers on a personal level to assist them to become and maintain a good tax compliance status.

An Objection can be filed by completing a Notice of Objection form or by writing a letter to the Comptroller of the Inland Revenue Department. The form must be signed by the taxpayer, the owner of the business or an authorized employee of the company. If a representative is appointed, the taxpayer must provide written authorization. A Notice of Objection may be sent by regular mail or facsimile transmission, or may be hand delivered to the Inland Revenue Department, Bay Road, Basseterre – Objections and Appeals section.
OBJ-001: Objection Form For Tax Assessments: To be used for all tax objections except Property Tax and VAT objections.
OBJ-002 – Objection Form For Property Tax Assessments: To be used for Property Tax objections.
OBJ-003: Objection Form For Value Added Tax Assessments: To be used for VAT objections.

Summary of the Steps

• The taxpayer's name
• Account or taxpayer’s number
• Taxation statute under which the assessment or disallowance was issued
• Date and number of the assessment
• Tax Period or transaction in question
• Amount of tax or refund, and
• Description of issue(s)
• Facts and reasons for objection
• Any other additional factual information to support your objection.

There is no fee to file a Notice of Objection. However for a Value Added Tax (VAT) objection, the Value Added Tax Act No. 3 of 2010, Section 64 (4) states:

“(4) An objection to an appealable decision shall be
(a) in such form as may be prescribed by the Comptroller;
(b) specify in details the grounds upon which it is made, and
(c) be accompanied by payment of all tax not in dispute and 50% of the amount of tax in dispute”. 

If you have a good reason for requiring more than 30 days to file a Notice of Objection, you can apply to the Comptroller of the Inland Revenue Department for an extension of time, before the 30 days for objections have expired. Extensions are not given for reasons such as vacation, inventory-taking or year-end timing. However, if you apply after the 30-day period for objections, you must be able to demonstrate that it was impossible to file within the 30-day period and that the Notice of Objection was filed as soon as circumstances permitted. If the explanation provided is not satisfactory, no extension of time will be granted, and your Notice of Objection will be considered invalid.

Taxpayers who successfully object or appeal will be paid interest on any amounts paid on an assessment, from the dates the payments were made. However, the amount refunded, including interest, will first go to reducing other tax liabilities owed to IRD before any refund is made.

There are no provisions in the Income Tax Act Cap 20.22, tax statutes to allow for the reduction of the tax or interest that has been assessed because of the taxpayer’s inability to pay. The Appeals Officer can only recommend a variance to the tax or penalty that has been assessed if it is his or her opinion that the amount assessed is an error due to an incorrect application of the law.
However, under the Property Tax Act, 2006, No. 13 of 2006 the Minister may perform a Remission of taxes (Section 65) or a Deferral of tax (Section 66) if a taxpayer is experiencing hardship or injustice has resulted or is likely to result.

No compensation for costs is granted to a taxpayer who may obtain a favourable resolution at the Notice of Objection stage. The Notice of Objection process is intended to be simple, inexpensive and easily accessible

All taxes collected by Inland Revenue Department on behalf of the Government of St. Christopher and Nevis, are used to support the economic and social growth of the Federation.

Individual/partnership business licence registration:

1. To SKN government issued ids of owner or partner (valid SKN Driver Licence, valid passport, valid SKN Social Security card, National ID card);
2. A utility bill showing proof of mailing address.

Company or Registered Partnership business licence registration:

1. Two government issued ids of each registered owner or partner (valid SKN Driver Licence, valid passport, valid SKN Social Security card);
2. A utility bill showing proof of mailing address of each registered owner or partner;
3. A copy of the Certificate of Incorporation;
4. A copy of the Memorandum of Articles of Association.

1. Insurance Premium Tax
2. Insurance Registration Fee
3. Withholding Tax
4. Excise Tax
5. Incom Tax (Companies)
6. Value Added Tax (VAT)
7. Unincorporated Business Tax (UBT)
8. Island Enhancement Fund
9. Property Tax
10. Drivers' Licence and Vehicle Licence
11. Coastal Levy
12. Travel Tax"