Financial Crime World

Compliance Audit Checklist in St. Kitts and Nevis: A Guide for Businesses

Introduction

Incorporated businesses in St. Kitts and Nevis are required to maintain accurate accounting records that reflect their financial position. This guide outlines the compliance audit checklist for businesses operating in the country.

Tax Filing Requirements

  • No Corporate, Income or Property Taxes: Companies do not pay corporate, income or property taxes.
  • Annual Registration Fee: Companies pay an annual registration fee instead of taxes.
  • Resident Company Tax Returns: All resident companies are required to file an income tax return, even if they did not conduct any business transactions during the reporting period.
  • Non-Resident Corporation Tax Returns: Non-resident corporations with a permanent business establishment in St. Kitts and Nevis must also file an annual income tax return.

Minimum Requirements for Tax Returns

To comply with tax filing requirements, companies must submit the following financial statements:

  • Balance Sheet: Made at the end of the period.
  • Profit and Loss Statement: Made at the end of the period.
  • Cash Flow Statement: Showing inflows and outflows of cash.
  • Statement of Retained Earnings: Showing retained earnings over time.
  • Notes to Accounts: Providing additional information about account balances.

Auditing Requirements

  • Offshore Companies: Offshore companies are not required to conduct an audit.
  • Resident Companies: All resident companies, corporations or other persons with a permanent business establishment in St. Kitts and Nevis must audit their financial statements.
  • IFRS Compliance: Financial statements must be prepared according to International Financial Reporting Standards (IFRS).
  • Independent Auditor’s Opinion: A positive auditor’s opinion from an independent auditor is required.

Filing Deadlines

  • Corporate Tax Return Deadline: 3.5 months after the end of the financial year.
  • Penalties for Late Filing: Failure to meet deadlines attracts penalties of:
    • 100 Eastern Caribbean dollars per month.
    • A late payment penalty of 10% of the amount.
    • A late payment fee of 1.25% per month.

Penalties for Non-Compliance

  • Failure to Provide Accounts: Failure to provide accounts according to legislation on controlled foreign companies results in a penalty of 500,000 rubles imposed on the controlling person.

Consolidated Financial Statements

  • Resident Companies: Resident companies must prepare consolidated financial statements in accordance with IFRS.
  • Offshore Companies: Offshore companies are exempt from this requirement.