Basseterre, St. Kitts (SKNIS): In a significant move to boost economic growth and business development, Prime Minister of St. Kitts and Nevis, the Honourable Dr Terrance Drew, announced during his 2024 Budget Address in the National Assembly on December 13, 2023, that the Corporate Income Tax rate for corporations registered in the Federation will be officially set at 25 percent effective January 01, 2024.
This decision follows a period of temporary reductions in the Corporate Income Tax rate, which were initially implemented until June 2023 and subsequently extended to December 2023. This policy, he noted, is an investment in the nation’s future, fostering an environment conducive to business growth, innovation, and community prosperity.
“It is our expectation, therefore, that with a lower tax rate, businesses would use the resultant savings to expand their operations to provide more innovative products and services, reinvest the funds in research and development as well as new technologies and most importantly, employ more people,” said Prime Minister Dr Drew. “This not only enhances the competitiveness of local businesses at the regional and international level but also drives economic growth and innovation domestically.”
Moreover, the prime minister pointed out that a reduced Corporate Income Tax rate is a key factor in attracting foreign investment.
“In today’s interconnected world, countries compete for global capital. A more favourable tax environment entices foreign companies to establish operations within our borders, bringing not just investments but also expertise, technology, and job opportunities for our citizens,” said Dr. Drew.
Prime Minister Drew acknowledged the vital role of businesses of all sizes in the economic growth and development of the Federation. He stressed that the government’s partnership with the private sector is essential for nation-building and that the fixed Corporate Income Tax rate is a tangible effort by his administration to promote stability and sustainability, enabling businesses to develop long-term plans for their future contributions to the nation.