Basseterre, St. Kitts, November 13, 2020 (SKNIS):
The Team Unity Cabinet of Ministers met on Monday, November 09, 2020, at the Ministry of Finance Conference Room, under the chairmanship of Prime Minister Dr. the Honourable Timothy Harris. Several issues affecting the Federation of St. Kitts and Nevis were deliberated on.
The COVID-19 National Task Force brought the Cabinet up to date in relation to the reopening of the Federation’s borders with the first international flight from Miami, which arrived at the RLB International Airport on Saturday, November 07, 2020.
The Task Force detailed the number of passengers with a breakdown of nationalities.
The processing time for all arriving passengers was 2 ½ hours and the procedure was described as seamless.
Many passengers expressed satisfaction with the ease with which they cleared the formalities.
This demonstrates that the measures and protocols put in place were adequate.
There were a few minor glitches, which will be addressed.
A team from the Inland Revenue Department (IRD) made a presentation to the Cabinet on the updating of the current Income Tax Act to clarify when a company is a resident in St. Kitts and Nevis for taxation purposes.
The IRD made proposals that the company would be resident in St. Kitts and Nevis if it was managed and controlled in the Federation.
The IRD also provided an update to the Cabinet in terms of the progress to date in the Federation’s compliance with the European Union (EU) and the Organization for Economic Co-operation and Development (OECD) international tax governance standards.
The Federation through the efforts has not been included on the EU list of non-cooperative tax jurisdictions nor recorded on the EU Grey List.
The IRD also provided an update with respect to the Federation’s compliance with FATCA (Foreign Account Tax Compliance Act) reporting to the IRS (Internal Revenue Service) and common reporting standards in regard to the OECD.
The grandfathering period for tax exemption for entities registered under the Nevis Ltd Liability Corporation Ordinance, the Nevis International Business Companies Ordinance, and the Exempt Companies Act, would end on 20th June 2021.
The Cabinet in response to a request of the Chamber of Industry and Commerce (CIC) agreed to two VAT Reduced Days instead of one. The days are the 18th and 19th December 2020.