Saint Kitts and Nevis

953. Saint Kitts and Nevis can legally issue the following five types of rulings within the scope of the transparency framework: (i) preferential regimes;1 (ii) cross-border unilateral APAs and any other cross-border unilateral tax rulings (such as an advance tax ruling) covering transfer pricing or the application of transfer pricing principles; (iii) rulings providing for unilateral downward adjustments; (iv) permanent establishment rulings; and (v) related party conduit rulings.

954. For Saint Kitts and Nevis, past rulings are any tax rulings within scope that are issued prior to 1 September 2018. However, there is no obligation for Saint Kitts and Nevis to conduct spontaneous exchange information on past rulings. Future rulings are any tax rulings within scope that are issued on or after 1 September 2018.

955. In the prior years’ peer review reports, it was determined that Saint Kitts and Nevis’s undertakings to identify rulings and all potential exchange jurisdictions were sufficient to meet the minimum standard. In addition, it was determined that Saint Kitts and Nevis’s review and supervision mechanism was sufficient to meet the minimum standard. Saint Kitts and Nevis’s implementation remains unchanged, and therefore continues to meet the minimum standard.

956. Saint Kitts and Nevis has met all of the ToR for the information gathering process and no recommendations are made.

957. Saint Kitts and Nevis has international agreements permitting spontaneous exchange of information, including being a party to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters: Amended by the 2010 Protocol (OECD/Council of Europe, 2011[4]) (“the Convention”).

958. As Saint Kitts and Nevis did not issue any future rulings within the scope of the transparency framework in the relevant period, Saint Kitts and Nevis was not required to exchange any information on rulings in the year in review and no data on the timeliness of exchanges can be reported.

959. In the prior years’ peer review reports, it was determined that Saint Kitts and Nevis’ process for the completion and exchange of templates were sufficient to meet the minimum standard. Saint Kitts and Nevis’ implementation in this regard remains unchanged and therefore continues to meet the minimum standard.

960. Saint Kitts and Nevis has the necessary legal basis for spontaneous exchange of information and a process for completing the templates in a timely way. Saint Kitts and Nevis has met all of the ToR for the exchange of information process and no recommendations are made.

961. As no rulings were issued, no statistics can be reported.

962. Saint Kitts and Nevis offered three preferential regimes, which also provided benefits to income from intellectual property,2 that are not subject to the transparency requirements under the Action 5 Report (OECD, 2015[1]), because:

  • New entrants benefitting from the grandfathered IP regime: no exchanges were needed to take place as described in the prior year peer review report.

  • Third category of IP assets: not applicable as the IP regimes have been abolished.

  • Taxpayers making use of the option to treat the nexus ratio as a rebuttable presumption: not applicable as the IP regimes have been abolished.

References

[3] OECD (2021), BEPS Action 5 on Harmful Tax Practices - Terms of Reference and Methodology for the Conduct of the Peer Reviews of the Action 5 Transparency Framework, OECD Publishing, Paris, http://www.oecd.org/tax/beps/beps-action-5-harmful-tax-practices-peer-review-transparency-framework.pdf.

[1] OECD (2015), Countering Harmful Tax Practices More Effectively, Taking into Account Transparency and Substance, Action 5 - 2015 Final Report, OECD/G20 Base Erosion and Profit Shifting Project, OECD Publishing, Paris, https://dx.doi.org/10.1787/9789264241190-en.

[2] OECD (ed.) (2017b), Harmful Tax Practices - 2017 Progress Report on Preferential Regimes, OECD Publishing, Paris, http://dx.doi.org/10.1787/9789264283954-en.

[4] OECD/Council of Europe (2011), The Multilateral Convention on Mutual Administrative Assistance in Tax Matters: Amended by the 2010 Protocol, OECD Publishing, Paris, https://dx.doi.org/10.1787/9789264115606-en.

Notes

← 1. 1) Nevis LLC, 2) Nevis business corporation and 3) Companies act – exempt companies.

← 2. See note 1.

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