St. Kitts-Nevis removed from EU’s nonoperative list in light of good governance principles

From the government of St. Kitts and Nevis 

The European Union has removed the Federation of St. Kitts and Nevis from its list of noncooperative jurisdictions for tax purposes. The de-listing of St. Kitts and Nevis took effect May 25.

The Economic and Financial Affairs (ECOFIN) Council’s Code of Conduct Group on Business Taxation – the working group responsible for the listing process – decided that St. Kitts and Nevis should be moved from Annex I to Annex II (de-listed). Annex I is the EU’s list of noncooperative jurisdictions for tax purposes, whereas Annex II comprises jurisdictions that have made commitments to implement tax good governance principles.

St. Kitts and Nevis has committed to amend the relevant legislation to address the EU’s concerns regarding preferential tax regimes by the end of December 2018. The federation remains committed to the implementation of the various international standards and has exhibited its commitment by joining the Organisation for Economic Co-operation and Development’s (OECD’s) Inclusive Framework on Base Erosion and Profit Sharing (BEPS). The BEPS Inclusive Framework comprises more than 100 jurisdictions that are collaborating on the implementation of the OECD/G20 anti-BEPS package. The package aims to tackle BEPS practices, which refer to tax avoidance strategies that involve artificially shifting profits to low- or no-tax locations.

Moreover, St. Kitts and Nevis has signed the OECD Multilateral Convention on Mutual Administrative Assistance in Tax Matters. Prime Minister the Honourable Dr. Timothy Harris signed the convention and deposited the Instrument of Ratification with the OECD at its headquarters in Paris, France on Aug. 25, 2016. St. Kitts and Nevis also signed the Multilateral Competent Authority Agreement to facilitate the automatic exchange of financial account information in accordance with the Common Reporting Standard (CRS).

The federation is a member of the Global Forum on Transparency and Exchange of Information for Tax Purposes – the premier international body that ensures the implementation of the international standards on tax transparency – and is deemed by it to be “Largely Compliant.”