St Kitts and Nevis: New Insurance Registration Fee (Tax)
This article is to advise the Lloyd’s market of a new tax which is being introduced in St Kitts and Nevis.
Lloyd’s Underwriters currently have an obligation to report and pay insurance premium tax on all Lloyd’s insurance business (excluding reinsurance) where the risk is located in St Kitts and Nevis. The existing insurance premium tax is a charge on the insurer and a deduction from gross premium received and is administered centrally by Lloyd’s tax department.
Effective since 1 October 2019, a new tax (“insurance registration fee”) has been introduced in St Kitts and Nevis applicable to all Lloyd's insurance business (excluding reinsurance). The new tax is charged at 0.2% of the sum insured up to a maximum of EC$30 per policy. The new tax will be treated as a charge on underwriters and a deduction from premium received. Lloyd's tax department will centrally administer the insurance registration fee and pay it to the St Kitts and Nevis tax authorities on a quarterly basis.
The insurance registration fee should be shown in the fiscal and regulatory section of the MRC under “Taxes payable by insurers”.
A risk is located in St Kitts and Nevis for the purposes of insurance premium tax and the insurance registration fee if it relates to property (fixed or moveable) situated in St Kitts and Nevis or in relation to all other classes of insurance where the risk covered is ordinarily situated in St Kitts and Nevis, e.g. liability attaching to a resident insured or vessels/aircraft operating in or from St Kitts and Nevis.
The registration of a vessel or aircraft in St Kitts and Nevis on its own will not create a tax risk location.
For further guidance on the application of taxes in St Kitts and Nevis please consult Lloyd’s Crystal or contact Lloyd’s Tax Department by visiting https://www.lloyds.com/resources-and-services/tax-information/tax-contacts.