St. Kitts

About Us

The Tax Reform Unit was established in January 2009 with the responsibility for the management of the Tax Reform and Modernization Programme for the Federation of St. Christopher & Nevis.

The Tax Reform Unit activities are primarily focused on the following:

  • Managing the implementation of the re-designed tax system
  • Tax legislative analysis and simplification
  • Organisational structures re-design
  • The provision of training and capacity building in tax administration departments
  • The provision of technical assistance in the reform process
  • Re-engineering of tax administration business processes and procedures
  • The re-tooling of the tax administration departments to enhance their E-Readiness & E-Governance
  • Advocating the incorporation of technology solutions into the tax compliance process of businesses
  • Soliciting and incorporating stakeholders’ recommendations in the re-design of the tax system to attain fairness, progressivity and stimulate business development


Tax Tips

Special Input tax rule for supplies at 10%

A taxpayer whose taxable activities include the provision of accommodation and restaurant services, subject to the reduced VAT rate of 10%, is not allowed to deduct in any given tax period, any input tax that exceeds its output tax both of which resulted from this reduced rate taxable activity.

Eg. A taxpayer who operates a guest house or a restaurant and calculates output tax for a particular tax period of $50,000 and allowable input tax for that period of $55,000, is not allowed to deduct $55,000. He/she must only deduct up to $50,000 although he incurred $55,000 in that period.

NB: This taxpayer must never carry forward a credit to the subsequent tax period.