Ceasing your tax residency in Saint Kitts and Nevis is a significant but straightforward process. Whether you're moving to a new country or making other life changes, it's crucial to follow these steps carefully to ensure compliance with local laws.
Step 1: Determine Your New Tax Residency
Before you can cease your tax residency in Saint Kitts and Nevis, you need to establish tax residency in another jurisdiction. This usually involves meeting the residency requirements of the new country, such as physical presence, employment, or owning property there.
Step 2: Notify the Inland Revenue Department
Write a formal letter to the Inland Revenue Department in Saint Kitts and Nevis, informing them of your intention to cease tax residency. Include your personal details, the date of your planned departure, and your new country of residence.
Step 3: Settle Outstanding Tax Liabilities
Ensure that all your tax liabilities in Saint Kitts and Nevis are settled. This includes filing any pending tax returns and paying any owed taxes. Obtain a tax clearance certificate to confirm that your tax obligations have been fully met.
Step 4: Close Local Bank Accounts and Financial Holdings
Close any local bank accounts and liquidate other financial holdings in Saint Kitts and Nevis. This step ensures that you no longer have financial ties to the country, which could affect your tax residency status.
Step 5: Keep Detailed Records
Maintain thorough records of all correspondence with the Inland Revenue Department, tax clearance certificates, and other relevant documents. These records will be crucial if there are any future queries regarding your tax residency status.
Legal References
- Income Tax Act, Cap 20.22
- Tax Administration and Procedures Act, Cap 20.52
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