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Saint Kitts and Nevis: A Guide to its Legal System and Tax Framework
Legal System
Saint Kitts and Nevis has a robust legal system that underpins its democratic government. Here are some key points about the country’s legal framework:
- Saint Kitts and Nevis is a common law jurisdiction with a democratic system of government.
- The legal system is based on English common law, with the Constitution as the supreme law.
Hierarchy of Laws
The hierarchy of laws in the Federation includes:
- The Constitution of Saint Kitts and Nevis: The supreme law of the land.
- Acts passed in the Federal Legislature (National Assembly): Including international (tax) treaties.
- Ordinances passed by the Nevis Island Legislature (Nevis Island Assembly): These ordinances have the force of law on the island of Nevis.
- Subsidiary legislation: Such as regulations, statutory rules, and orders.
Tax System
The tax system in Saint Kitts and Nevis is governed by several laws, which are outlined below:
Key Laws Governing Income Tax
- Income Tax Act
- Unincorporated Business Tax Act
- Tax Administration and Procedures Act
- Nevis Tax Administration and Procedures Ordinance
Tax Rates and Obligations
- Resident Corporations: Are taxed on their worldwide income at a rate of 33%.
- External (Foreign) Companies: Operating in Saint Kitts and Nevis must register with the Registrar of Companies and pay corporation tax on locally sourced income, as well as a tax on branch profits remittance.
- Domestic Trusts, Partnerships, and Estates: Are taxed at the same rate as companies.