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BASIC COUNTRY FACTS

Saint Vincent and the Grenadines

Kingstown

  • English
  • Vincentian Creole

110,210

Eastern Caribbean dollar

.vc

+784

Eastern Caribbean dollar

STATUTORY LABOR REQUIREMENTS

Probation Period

  • Probationary period shall not exceed six months

Annual Leave

  • A domestic worker, except a domestic worker who is employed on a day-to-day basis, shall be entitled to holidays as follows:
    • 1 to 5 years’ service, 14 calendar days
    • 6 to 10 years of service, 21 calendar days

Public Holidays

  1. New Year's Day (1st January)
  2. National Heroes Day (14th March)
  3. Good Friday (10th April)
  4. Easter Monday (13th April)
  5. Labor Day (1st May)
  6. Whit Monday (1st June)
  7. Emancipation Day (of Saint Vincent and the Grenadines) (1st August)
  8. Carnival (3rd to 4th August)
  9. Independence Day (27th October)
  10. Christmas Day (25th December)
  11. Boxing Day (26th December)

Maternity Leave

  • A worker who has two years’ continuous service with an employer shall be entitled to maternity leave for the aggregate period of four weeks’ confinement, during which time the employer shall pay not less than thirty-five percent of wages to the domestic worker.

Paternity Leave

  • Provisions for circumstantial leave by which an employee is entitled to a certain number of days of paid leave (usually fewer than five days) upon the birth of a child are considered paternity leave

Sick Leave

  • A domestic worker who has six months’ continuous service with an employer shall be entitled to fourteen days’ sick leave with pay in any one year

Work Hours

  • The hours of work shall be eight hours per day and forty-eight hours per week.

Overtime

  • Where a domestic worker works in excess of the hours of work specified, the employer shall pay overtime wages at time and half for every hour or part thereof.

Notice Period

  • Notice periods for weekly paid employees is as follows: -
    • Under 1 year, 1 week
    • 1 year and under 3 years, 2 weeks
    • 3 years and under 6 years, 3 weeks
    • 6 years and over, 4 weeks
  • Notice periods for fortnightly paid employees is as follows: -
    • Under 2 years, 2 weeks
    • 2 years and under 6 years, 3 weeks
    • 6 years and over, 4 weeks
  • Notice periods for monthly paid employees is as follows: -
    • 4 weeks

Severance

  • The rate of severance pay which is payable by an employer shall be: 
    • two weeks’ pay for each year of continuous service from two to ten years; 
    • three weeks’ pay for each further year of continuous service from eleven to twenty-five years;  
    • four weeks’ pay for each further year of continuous service in excess of twenty-five years.

13th Month Salary in Brazil

  • No
  • There is no statutory requirement to pay the 13th or the 14th month salary.
  • There is no evidence that it is customary to give bonuses.

INCOME TAX

  • Resident individuals are taxed on worldwide income, but only to the extent received in St. Vincent & the Grenadines if they are not ordinarily resident there
  • Such taxable income includes income generated from St. Vincent & the Grenadines and income from activities performed there
  • Taxable income includes income from employment and business income less allowable deductions and allowances
  • The rates are as follows: - 

Taxable Income

Rate

XCD 5,000

10%

XCD 5,001 – 10,000

20%

Over XCD 10,000

30%

 

DEDUCTIBLE EXPENSES

Individuals are entitled to a personal allowance of XCD 20,000.

IMMIGRATION 

  • Most of the foreign nationals visiting Saint Vincent and the Grenadines are granted visa free access
  • Nationals of the following countries listed hereunder are required to obtain a pre-entry visa for Saint Vincent and the Grenadines:
    • Dominican Republic
    • Jordan
    • Syria
    • Iran
    • Iraq
    • Lebanon
    • China
    • Nigeria
  • The key factors looked at when someone applies for a Visa are:
    • Ability to maintain him or herself financially
    • Evidence of Employment
    • Evidence of Accommodation
    • Period for which Visa is applied
    • Invitational letter from Sponsor
    • Evidence of Sponsor’s status on the island
    • Police Record (Applicant)

Type of Visa/Permit

Documentation

Validity

Eligibility

Tourist Visa

  • Valid passport
  • Passport size photos
  • Completed visas application form
  • Proof of sufficient funds
  • Proof of accommodation

Varies

  • Foreigners seeking to visit Saint Vincent and the Grenadines for tourism purposes must obtain a tourist visa

Business Visa

  • Valid passport
  • Passport size photos
  • Completed visas application form
  • Proof of sufficient funds
  • Proof of accommodation
  • Invitational letter from Sponsor

Varies

  • Foreigners seeking to visit Saint Vincent and the Grenadines for business purposes must obtain a tourist visa

VALUE ADDED TAX

  • In 2007, VAT was introduced in Saint Vincent and The Grenadines.
  • VAT standard rate is 16 percent; VAT reduced rate is 0 percent, and 11 percent for the hotel sector. 

VAT

Standard Rate

16%

Reduced Rate

11%

Zero Rate

0%

WITHHOLDING TAX

Dividends

  • There is no withholding tax on dividends

Interest

  • Withholding tax applies to interest paid to nonresident companies and individuals
  • The rate is 15% on interest paid to a resident of a CARICOM country; otherwise, the rate is 20%
  • No withholding tax applies on interest paid to a resident company or individual

Royalties

  • Withholding tax applies to royalties paid to nonresident companies and individuals
  • The rate is 15% on royalties paid to a resident of a CARICOM country; otherwise, the rate is 20%
  • No withholding tax applies on royalties paid to a resident company or individual

Fees for Technical Services

  • The withholding tax rate on technical service fee (other than fees for independent private services) paid to a resident of a CARICOM country is 15%
  • A 20% rate applies to fees in respect of independent personal services paid to a resident of a CARICOM country, and all technical service fees paid to a resident of any other country

Type of Payment

Residents

Nonresidents

 

Company

Individual

Company 

Individual

Dividends

0%

0%

0%

0%

Interest

0%

0%

15%/20%

15%/20%

Royalties

0%

0%

15%/20%

15%/20%

Technical Service Fee

0%

0%

15%/20%

15%/20%

 TERMINATION 

The service of an employee shall be deemed to be terminated for good cause where the employee: 

    • has been found guilty of misconduct in or in relation to his employment which is of such a nature that it would be unreasonable to expect the employment relationship to continue, 
    • has been guilty of repeated misconduct or unsatisfactory performance which in the first instance is not sufficiently serious to warrant dismissal under paragraph (a) and is of such a nature that the employer could not reasonably be expected to continue his employment if such conduct is repeated, or 
    • not been performing satisfactorily and during any period within six months, the employee has been warned by the employer in writing or orally in the presence of two credible witnesses on more than one occasion whereby the employer has indicated to him the nature of his conduct or his unsatisfactory performance and the action which the employer intends to take and thereafter no improvement in the conduct or the performance of the employee has resulted.
    • has been found guilty of a criminal offence relating to his employment, without the connivance, express or implied, of his employer; 
    • does not have the capability or qualification to perform the work of the kind he was employed to do: Provided that the employer has given the employee at least two written warnings to that effect and that within three months thereafter the employee does not rectify the defect or make up the deficiency pointed out to him; or 
    • cannot be retained in the position he held without contravention by him or his employer of some existing law.

STATUTORY BENEFITS

  • These are mandatory benefits as postulated by law
  • These include probationary period, annual leave, public holidays, sick leave, maternity leave, paternity leave, overtime pay, notice period, and severance pay
  • Statutory benefits also include social security benefits

Statutory Benefits

Probationary Period

Annual Leave

Public Holidays

Maternity Leave

Paternity Leave

Sick Leave

Overtime Pay

Notice Period

Severance Pay

Social Security Benefits

PAYMENTS AND INVOICING

  • Tax year is the calendar year
  • Joint filing of spouses is not permitted
  • Each individual must file a tax return
  • The tax return must be filed by 31st March, with tax paid on the same date
  • A Pay As You Earn (PAYE) system is used to deduct tax from the salaries of employees

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