Post by congregatio on Jan 28, 2019 23:40:17 GMT 4
There has been an important legislative change relating to taxation of IBCs in St. Vincent & the Grenadines. From January 1, 2019 all new IBCs incorporated will be taxed at a rate of 30% on worldwide income (i.e. income earned in St. Vincent & the Grenadines and outside of St. Vincent & the Grenadines). IBCs incorporated prior to January 1, 2019 will be tax exempt until 2021.
The reason for the changes is that the European Union ("EU") threatened to blacklist St. Vincent & the Grenadines if certain changes were not made to its tax regime by December 31, 2018. In order to avoid blacklisting the jurisdiction was required to tax IBCs at a rate significantly or substantially similar to that of their local companies which is 30%.
St. Vincent & the Grenadines taxes on worldwide income but when the new laws came in to place everyone was expecting the jurisdiction to switch to a territorial system of taxation, taxing only income earned in the jurisdiction and exempting income earned outside the jurisdiction from taxes as IBCs earn their income outside of the jurisdiction they would continue to be exempt from taxes. However the authorities have decided to defer switching to a territorial system of taxation until a later date.
The reason for the changes is that the European Union ("EU") threatened to blacklist St. Vincent & the Grenadines if certain changes were not made to its tax regime by December 31, 2018. In order to avoid blacklisting the jurisdiction was required to tax IBCs at a rate significantly or substantially similar to that of their local companies which is 30%.
St. Vincent & the Grenadines taxes on worldwide income but when the new laws came in to place everyone was expecting the jurisdiction to switch to a territorial system of taxation, taxing only income earned in the jurisdiction and exempting income earned outside the jurisdiction from taxes as IBCs earn their income outside of the jurisdiction they would continue to be exempt from taxes. However the authorities have decided to defer switching to a territorial system of taxation until a later date.