With no direct taxation in the TCI, what is their primary source of income?
Residents and TCI registered companies are not subject to any form of direct taxation (no income tax, no capital gains tax, no gift tax, no property tax, no corporation tax, no rates, no inheritance tax etc). The Government’s primary source of income therefore is indirect taxation. The government charges a flat licensing fee to financial institutions that operate in the islands. There is a government service tax of 10% in restaurants. Each tourist exiting the islands is charged a $35 fee (already included in your flight costs) and there is a small government tax added to all accommodations. There are also certain one-time indirect taxes such as stamp duty, work permits, residency fees and import taxes on certain types of goods imported into the island.ss In some cases, Conch Developments are able to cover some of the above costs for our clients. Many clients who buy land from us are offered free flights and accommodation to inspect their purchase and this includes the islands exit and
