Nevis gets direct shot at corporate taxes

Premier Joseph Parry says a new amendment to the Income Tax Act targeting corporate profits will provide much-needed revenue to the island and is part of the efforts by The Nevis Island Administration to seek more autonomy from St Kitts.

"This historic landmark legislation is crucial for the island of Nevis, as for the first time since 1983 the government of Nevis is fully authorised to collect the corporation taxes from all companies operating on Nevis," Parry told a news conference.

"The taxes collected would immediately increase the Treasury's collections by EC$4 million to EC$10 million annually."

Parry said that the amendment would allow for businesses operating in Nevis to pay taxes to the Consolidated Fund of The Nevis Island Administration, and no longer to the federal govern-ment, through the Inland Revenue Department.

Companies in St Kitts with branches or subsidiaries in Nevis would be required to pay taxes in Nevis for their Nevis locations. Likewise, companies registered in Nevis but who carry out business in St Kitts will be required to pay corporate taxes to the federal government under the new amendment.

Parry said the legislation would put Nevis in a much better and stronger position to move ahead with its push towards decentralising power, allowing for Nevis to put more funds into the police force, job creation policies, more incentives for businesses, education, and other areas.

"We were able to make this amendment a reality without any arguments or conflicts with the federal government," said Parry.

The Nevis Island Cabinet has had several meetings with the Federal Cabinet, in addition to meetings between myself and Prime Minister Dr Denzil Douglas, and today we are able to say that the island of Nevis is able to collect millions of dollars that are owed to the Nevis Treasury."

- CMC