Update for clients of AMS Trustees (Nevis) Limited (“AMS”).

New requirement to file Simplified Tax Return in Nevis.

This is to inform you that the Inland Revenue Department (”IRD”) of the government of St. Kitts and Nevis introduced a regulatory initiative earlier this month under which entities will be required to file a Simplified Tax Return (CIT-101 Tax Return) annually with the IRD. This new requirement to file the Simplified Tax Return will apply to all entities that are registered under the Nevis Business Corporations Ordinance and the Limited Liability Companies Ordinance and going forward Directors of Nevis Corporations as well as Managers of Limited Liability Companies will be required to sign a declaration and provide the IRD with information about tax residence, activities and income of entities, etc. (as applicable).

The Simplified Tax Return will need to be filed by AMS as the registered agent of your entity; however, all required information must be provided by the Director(s)/Manager(s) of the entities to AMS.

Rationale for this IRD regulatory initiative. 

This regulatory initiative was launched as a response to ongoing projects by the European Union and the Organization for Economic Cooperation and Development around fair taxation which have affected a number of international financial centers in recent years.

As a background in early 2018 St. Kitts and Nevis was blacklisted by the European Union as a non-cooperative jurisdiction; therefore, the government of St. Kitts and Nevis implemented the necessary legislative reforms to its Companies Act, NIBC Ordinance and NLLC Ordinance to comply with international tax good governance principles which resulted in St. Kitts and Nevis receiving a rating of largely compliant and being removed for the aforementioned blacklist.

The government of St. Kitts and Nevis in addition to amending the legislative regimes mentioned above instituted grandfathering provisions to cover existing entities at the time of the amendments.

In order to maintain its largely compliant status and to continue to comply with its international obligations, the government of St. Kitts and Nevis has instituted this new regulatory initiative which   was only adopted in mid-August and was due to start on August 18, 2020. Nevis entities formed before December 31, 2019 are expected to file their first return by August 26, 2020.

What’s next ?

These were clearly very ambitious timelines and it is practically impossible and unreasonable for AMS, our clients and industry peers in Nevis to meet the first filing deadline of August 26, 2020. AMS has signed on to a petition by the Nevis International Service Providers Association (NISPA) to request the IRD for additional guidance on the specifics of this regulatory initiative as well as for filing relief in addition to filing a separate request of relief solely for AMS. We will keep you updated about developments and in particular about any filing relief that will be granted by the IRD.

With apologies that we cannot give you more clarity at this point while many matters are still being fleshed out, we will keep you abreast of further relevant developments in this matter.

Feel free to contact Eric van Aalst at eric.vanaalst@amsfinancial.com in case you have any questions about this update

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