Reduction in Corporate & Personal Income Taxes to take effect January 1

By Admin. Updated 3:11 p.m., Thursday, December 28, 2022, Atlantic Standard Time (GMT-4).

The maximum tax rate for Corporate Income Tax and Personal Income Tax in St. Vincent and the Grenadines will be reduced from 30 percent to 28 percent from January 1, 2023.

Finance Minister Camillo Gonsalves had made this announcement weeks ago, but a December 23 memorandum from the Comptroller of the Inland Revenue Department confirmed the January 1 date for the tax reductions to take effect.

In addition to the reductions in income taxes for all taxpayers, the standard deduction rates will also see some changes.

As it stands now, an individual’s salary, once it reaches $20,000 per year, is subject to income taxes.

But with the new changes to take effect from January 1, 2023, the income taxes will only be applied for individuals whose salaries reach $22,000 dollars or more, per year.

The move is expected to be good news for all taxpayers in the new year.