www.statusin.org

Organization : Inland Revenue Department
Type of Facility : Corporate Tax Return Filing
Country: St. Kitts & Nevis

Website : https://www.sknird.com/

Corporate Tax Return Filing :

Any business incorporated in Saint Christopher and Nevis must file an Income Tax Return even if the corporation did not have any business transactions during the year or if it was granted a tax holiday.

Related : Inland Revenue Department St. Kitts & Nevis Property Tax Payment : www.statusin.org/8310.html

In addition, any non-resident, corporation or otherwise, with a permanent business establishment in Saint Christopher and Nevis must also file an annual Income Tax Return. Saint Christopher and Nevis Branch offices of offshore corporations are treated as if they were incorporated in Saint Christopher and Nevis and as separate tax entities from their head office.

The Corporate Income Tax Return must be filed on the forms prescribed by the Comptroller. If you are unclear about which forms you should be using, we encourage you to contact the Inland Revenue Department.

The Corporate Tax Return is due three and one half (3½) months after the fiscal year end of the entity. For example, if the fiscal year end of a corporation is the 31st December, the Income Tax Return must be filed with the Inland Revenue Department on or before the 15th of April of the following year. Similarly, if a corporate year end is the 30th of June, the Income Tax Return must be filed on or before the 15th of October.

The official filing date depends on the delivery method. If the Corporate Tax Return is hand delivered, the return will be date stamped by Inland Revenue on the day it is received by the department and that date will be considered the filing date. If the Income Tax Return is mailed or delivered by some other delivery method, the postmarked date will be considered the date of filing. In the event that a tax return is filed late, penalties and interest will be applied.

Tax Records & Accounting Systems:
You are required to keep all supporting documents and records to support the Income Tax Returns filed for a minimum of six years after the date on which the original tax return was required to be filed. It is the obligation of the taxpayer to retain information to support the tax return that was filed with the Inland Revenue Department. The consequences of not maintaining adequate records may be significant. For example, in the event that you fail to keep records for the period required and the Inland Revenue Department has selected your return for an audit, you may be denied a deduction of all expenses you are unable to support.

Accounting Systems For Tax:
Taxpayers are required by law to keep in the English language, proper books of accounts. There are many systems available that will be sufficient to meet the book of accounts standards required by the tax legislation, both computerized and manual. Selecting the appropriate accounting system is personal for each taxpayer and they should consider both tax requirements and business needs when deciding on the appropriate system. Whatever system a taxpayer selects for its bookkeeping and accounting purposes, that system must maintain an audit trail. That means that an independent person should be able to trace all items of information contained on the company’s financial statements and Tax Return from source to destination.

An appropriate accounting and record keeping system will allow the taxpayer or an independent person to identify all the individual transactions that comprise an amount reported in the financial statements or on the Income Tax Return. In addition, it will allow the taxpayer to locate all the supporting documents for any of those transactions, such as an invoice, voucher, cheque, purchase order, bank debit or credit, written agreement or some other document or combination of documents. The user will be able to determine where any particular individual transaction, such as a cheque, debit memo or invoice, has been reported in the financial statements or on the Income Tax Return. If an audit trail does not exist, it will be difficult for the taxpayer to support the financial statements and the Tax Return. This could result in deductions being disallowed or an assessment that is based on best judgments rather than based on the financial statements.