Companies are exempt from all taxes as long as they conduct their business exclusively with person who are not resident in the Federation. Not managed or controlled in or from within St. Christopher and Nevis and has no permanent establishment in the Federation.

A company is called an International company if it qualifies for the tax exemption mentioned above. An ordinary company is a company which is not an International company.

Ordinary companies will not pay income tax on dividends, interest and royalties received from a qualifying participating interest in another body corporate.

No estate, inheritance, succession or gift tax, rate, duty, levy or other charge is payable by any person with regard to any property owned by, or securities issued or created by or in respect of, an exempt company.

No stamp duty or other tax is payable by any person with regard to any transaction in any securities issued or created by or in respect of an exempt company.