Nevis is an island situated in the Caribbean. Together Nevis and St Kitts forms the St Kitts and Nevis Federation. Nevis is among the well known offshore tax havens which provide services such as incorporation of offshore companies, the formation of offshore Limited Liability companies (LLC), offshore banking, the formation of exempt trusts and offshore foundations, and offshore insurance among other services. Nevis also has a thriving tourism industry. Nevis tax haven has put many laws in place which keeps encouraging clients from around the world to set up business in the offshore jurisdiction.
A haven can be described as a safe place which provides shelter; so therefore, a tax haven provides people with a legal means of reducing tax liabilities. Tax havens today are those countries which have zero taxation or else have low tax regimes in place. Most tax havens available today are also offshore jurisdictions which are known to provide privacy, confidentiality and efficient services to clients.
Nevis as a tax haven can be referred to as a pure tax haven. The tax haven of Nevis imposes no local taxes on the income earned by Nevis International Business companies outside of the jurisdiction. Offshore companies which carry out business undertakings outside of Nevis are not subjected to corporation tax and income tax on the island. According to International business Companies legislation in tax haven Nevis, offshore companies are not subjected to any of the following forms of taxation; withholding tax, capital gains tax, estate tax, inheritance tax and gift among others.
Nevis as a tax haven provides privacy for clients. When incorporating Nevis offshore business companies the names and information regarding the beneficial owners and directors of the offshore company is not filed as public information therefore this remains private. Offshore business companies in Nevis needs for incorporation one shareholder and one director who can be the same person. To incorporate in offshore Nevis nominee shareholders and nominee directors can be used which will provide added privacy.
In order to protect offshore clients (corporations included) and other professionals in tax haven Nevis, a Confidentiality Relationship Act was passed in 1985. According to this act anyone who divulges information which is of a business or professional nature, is liable to be fined and serve a prison sentence. Corporations which do not cooperate with this law are liable to be fined also. Banking secrecy laws are also in place to protect offshore banking records and offshore bank account owners. Bank information will only be given out in cases of criminal investigations.
Tax haven Nevis has no exchange controls in place which makes it favorable for offshore business companies to engage in international trade. Nevis international business companies are not required to disclose the amount of funds which it transfers therefore making the movements of large sum of monies easy.
The offshore jurisdiction of Nevis has not signed double taxation treaty with the many countries in the world including the United States of America (USA) and Canada.
Nevis tax haven allows for the formation of exempt trusts and Limited Liability Companies (LLC). A Nevis Exempt Trust or offshore trust is exempted from paying taxes on all incomes gained abroad. Incomes can take the form of profits, dividends or interest earned. Nevis offshore trusts are also exempted from Stamp Duty on transactions conducted on behalf of the offshore trust. Individuals and corporations who have bank accounts at Nevis offshore banks benefit from reduced taxes since there are no taxes applied to the interests made by offshore bank accounts in tax haven Nevis.
A Limited Liability Company (LLC) formed in the offshore jurisdiction of Nevis pay no taxes in the tax haven of Nevis. Capital gained from outside of the offshore jurisdiction of Nevis is not subjected to any form of local taxation. Nevis offshore limited liability companies pay no taxes on dividends, interests earned and disbursement of wages. Nevis Limited Liability Companies receives the same level of privacy and confidentiality that international business companies, offshore bank accounts and trust company receive.
The laws regulating the incorporation of international business companies in Nevis tax haven does not obligate such offshore business entities to prepare and disclose to any authority in the offshore jurisdiction, its annual financial statement. The statement showing the annual accounts of a St Kitts offshore company is prepared for the benefit of the beneficial owners and directors of the company and can be kept at any location convenient to the members of the company.
Nevis is one of the most popular tax havens to be found in the Caribbean. Tax haven Nevis provides persons with a legal mean of tax planning. Tax haven Nevis provides privacy and asset protection for its clients who can be of any nationality.