Taxes in St Vincent and Grenadines

The Inland Revenue Department (IRD), under the Ministry of Finance, administers income tax, corporate tax, value added tax and land tax. The Customs and Excise Department (CED) assesses import duty, import VAT, excise and related vehicle or environmental charges. The Treasury handles payment and refund processing. National rules apply throughout Saint Vincent and the Grenadines, with local Revenue Offices in Georgetown, Barrouallie, Bequia, Canouan and Union. Personal income tax can apply to employees, self-employed professionals, unincorporated businesses and qualifying pensioners. A resident individual generally has a permanent abode in Saint Vincent and the Grenadines or is physically present there for at least 183 days. Income arising in Saint Vincent and the Grenadines and certain foreign income can fall within the tax calculation. For the 2024/2025 basis, the standard deduction is XCD 25,000. Chargeable income is taxed at 10% on the first XCD 5,000, 20% on the next XCD 5,000 and 28% above XCD 10,000. An individual return and payment are generally due by 31 March of the following year. Employers use Pay As You Earn (PAYE) to withhold income tax from employees whose income exceeds the standard deduction. The employer normally remits the amount by the 15th of the following month and files the annual PAYE return by 31 January of the following year. The exact withholding depends on the employee's taxable income and applicable deductions. Corporate income tax applies to incorporated companies on business profits at 28%. A company generally files and pays within three months after the end of its financial year. Estimated tax is paid in four instalments: at the end of the sixth, ninth and twelfth months of the income year and three months after the income year. A company incorporated in Saint Vincent and the Grenadines, or a foreign company managed and controlled there, can be treated as resident for tax purposes. Value added tax (VAT) is a consumption tax on taxable goods and services. Registration is generally required when taxable gross sales reach XCD 300,000 in any twelve-month period. Public-entertainment promoters and hotels, guest houses and apartments also have specific registration requirements. The current IRD operational rates are 16% standard VAT and 11% for accommodation. Zero-rated supplies carry a 0% rate, while exempt supplies have no VAT rate. A registered business can usually claim eligible input VAT, and a registered recipient may have to account for reverse-charge VAT on imported services. VAT returns and payments are generally due by the 15th of the month following the tax period. Older official pages may still show 15% and 10%; the current IRD portal and transaction-specific assessment should be used for the applicable rate. Withholding tax can apply when a resident payer or agent pays a non-resident. The stated rates include 20% for services, 10% for rent and 15% for certain payments to CARICOM recipients, including royalties, interest and management fees. Withheld amounts are generally remitted by the 15th of the following month. A non-resident providing services connected with Saint Vincent and the Grenadines can also have a local tax obligation. Land tax is charged annually by reference to market value, with the exact treatment depending on the parcel and island group. The IRD table lists rates such as 0.08% for urban land and buildings and exclusive commercial property, and 0.04% for agriculture, hotels, guest houses, tourism property and manufacturing factories. Rural vacant land below six acres and property valued at or below XCD 50,000 can attract an annual charge of XCD 10 under the listed rules. Land tax is generally due by 31 July. The current valuation table for the specific parcel controls the calculation. Budget 2026 planning refers to land registration and a national revaluation, but no direct rate increase has been announced. Imports can attract several charges at the border. The CED uses the CARICOM Common External Tariff and the product's Harmonized System (HS) code to determine import duty. Import VAT, excise, vehicle environmental surcharges and other transaction-specific charges can also apply. Vehicle duty rates in the CED guidance range from 0% to 35%, and vehicle excise rates range from 35% to 60%, depending on the vehicle and classification. Import VAT rates shown in CED material may differ from the current IRD VAT rate, so the live tariff and CED assessment should determine the amount. ASYCUDA World 4.4 has supported paperless commercial and home-use entries since 8 June 2026, while the VSWIFT system remains under development. VAT refunds are handled through the IRD rather than the CED. Excise applies to selected locally manufactured or imported goods, including alcohol, tobacco, petroleum, vehicles, non-alcoholic beverages, water and used tyres. Other transaction-based charges include the XCD 8 per night and room Caribbean Regional Levy for transient visitors in visitor accommodation, a 5% travel tax on ticket or fare costs for departures from Saint Vincent and the Grenadines, and a 5% insurance business tax on insurance premiums. A taxpayer needs a Tax Identification Number (TIN), and eTax is used for personal tax, corporate tax and VAT services. The CED provides ASYCUDA and online payment functions for customs matters. Tax records must be kept in English for seven years. Refunds move through IRD processing and Treasury verification before payment to the taxpayer's own account or an account for which the taxpayer has signing authority. The Inland Revenue Department can issue an estimated assessment when a return is missing or implausible. A taxpayer can object in writing to the Comptroller of Inland Revenue by giving reasons and attaching a copy of the assessment. A further appeal can go to the Appeal Commissioners and then to the High Court on a question of law. An objection to a VAT assessment does not automatically suspend payment, although the Comptroller can suspend recovery. The Tax Administration Act 2019 provides penalties for non-compliance. Examples include up to XCD 2,500 for failing to report a required change, up to XCD 25,000 for a false TIN or VAT invoice or receipt, late-filing penalties calculated by reference to tax due or a monthly minimum subject to a XCD 10,000 cap, a 20% late-payment penalty, and a 1.5% monthly interest charge. Underpayment can attract 25%, or 75% where the statutory higher-threshold conditions apply. Missing required documents can attract XCD 50 for each item. International rules can affect source, residence and reporting. Employment exercised in Saint Vincent and the Grenadines, local property and local management services are examples of income connections that can create local tax exposure. The Income Tax Act permits foreign-tax credit relief in relevant cases. Saint Vincent and the Grenadines has a verified CARICOM double-taxation agreement, but the available official material does not establish a comprehensive bilateral treaty network. The country has a FATCA Model 1B agreement with the United States and applies Common Reporting Standard (CRS) regulations for automatic exchange of financial-account information. The IRD acts as competent authority for these reporting systems. The Economic Substance Act 2020 and Regulations 2021 cover relevant activities such as banking, distribution and service centres, finance and leasing, fund management, headquarters, holding entities, insurance, intellectual property holding and shipping. An entity carrying on a relevant activity generally files its economic substance annual return within four months after the financial year ends. Certain exports and services supplied outside Saint Vincent and the Grenadines may qualify for VAT zero-rating. Proposed 2026 changes, including possible VAT reductions and exemptions for fresh food, medicines and domestic electricity, do not change the current rates until implemented.