In compliance with international standards, the Nevis Business Corporation (Amendment) Ordinance 2018 and Nevis Limited Liability Company (Amendment) Ordinance 2018 were passed on 28 December 2018 to repeal tax exempt provisions.
Under the Amendment Ordinances, all Nevis Business Corporations and Limited Liability Companies (LLCs) formed on or before 31 December 2018 will continue to benefit from the full tax exemptions until 30 June 2021, provided they do not carry out business in Nevis.
Engaging in one (1) or more of the following activities will not be viewed as carrying on business in Nevis:
- maintaining bank accounts in Nevis;
- holding meetings of the entities in Nevis;
- maintaining the entities or the financial books and records in Nevis;
- maintaining an administrative office in Nevis with respect to assets, business or activities done outside of Nevis;
- maintaining a registered agent in Nevis;
- investing in shares of a Nevis company, international business corporations, or investing in the interest of Nevis limited liability companies, acting as a partner of a partnership registered under the Partnership Act or the Limited Partnership Act, or as a beneficiary of an international trust or a qualified foreign trust; or
- acquires real property in a local, industrial or tourist facility provided always that such property shall be situated in a project or development approved and authorised by the Nevis Island Administration.
Further legislative changes for a local territorial tax regime are expected for corporations and LLCs established from 1 January 2019.
If you have any questions, please do not hesitate to contact your Asiaciti Trust representative.