Americas

Montserrat

Corporate rate
30%
Top personal rate
40%
VAT / GST rate
15%
One-sentence summary Montserrat's corporate tax position: 30% flat rate on chargeable income, confirmed directly via Section 37 of the primary Income and Corporation Tax Act (CAP 17.01) - resolving an earlier conflict with secondary sources citing 15-20%, which do not match the statutory text. Personal income tax: Progressive, 5% to 40%, with an annual tax-free threshold of $15,000. VAT/consumption tax: 15% standard rate reported by one source; not independently cross-verified against a primary source this session.

British Overseas Territory in the Eastern Caribbean; a member of the Eastern Caribbean Currency Union.

Corporate Tax Rate

30% flat rate on chargeable income, confirmed directly via Section 37 of the primary Income and Corporation Tax Act (CAP 17.01, gov.ms): "Tax shall be charged, levied and collected on the chargeable income of any company, building society or any body of persons at the rate of thirty percent." This resolves an earlier conflict where secondary sources cited figures as low as 15-20% - those figures do not match the actual statutory text and are not used here. International Business Companies (IBCs) - see Residency below - are exempt from this tax on income derived outside Montserrat.

Personal Tax Rate

Progressive, 5% to 40%, with an annual tax-free threshold of $15,000.

VAT / GST Rate

15% standard rate reported by one source; not independently cross-verified against a primary source this session.

Residency

Confirmed directly via Section 40(4) of the primary Income and Corporation Tax Act: an individual is resident in Montserrat for a year of assessment if (a) their permanent place of abode is in Montserrat and they are physically present for some period during the basic year (unless absent solely for education, medical treatment, or government duty), or (b) they are physically present in Montserrat for not less than 183 days during the basic year, or (c) they are physically present for some period during the basic year continuous with a qualifying period in the immediately preceding or succeeding year. Non-domiciled residents are taxed only on income remitted to Montserrat rather than worldwide income - a remittance-basis system distinct from the pure worldwide-taxation approach used by many other jurisdictions in the region. Companies incorporated in Montserrat as International Business Companies (IBCs) under separate legislation are exempt from local tax on income derived outside Montserrat, including income tax, capital gains tax, and withholding tax on dividends, interest, and royalties - provided no local residents are shareholders and no local real estate is owned by the IBC.

CFC (Controlled Foreign Company) Rules: Not identified

No specific confirmation of a Controlled Foreign Company regime (or its absence) was found in available sources for Montserrat this session. Given the primary Income and Corporation Tax Act contains numerous entity-specific exemption orders (e.g., named exemptions for specific companies), a targeted review of the Act's anti-avoidance provisions would be needed to confirm CFC status definitively - flagged as a gap rather than assumed either way.

Thin Capitalization

No statutory thin capitalization ratio or interest-limitation rule was identified in available sources for Montserrat this session.

Foreign Bank Account / Foreign Financial Asset Reporting

No domestic FBAR/Form 8938-equivalent requiring Montserrat residents to self-report their own foreign accounts was identified. Montserrat, as a UK Overseas Territory, entered into savings-income taxation exchange arrangements with EU member states dating to a 2004/2005 UK-Montserrat agreement (implementing the EU Savings Directive framework), reflecting a longstanding institutional information-exchange relationship that predates and likely underlies its current CRS participation - current CRS/FATCA status specifically was not independently re-confirmed this session. Separately and independently of Montserrat law, US citizens and Green Card holders with Montserrat accounts remain obligated to file FinCEN Form 114 (FBAR) once aggregate foreign accounts exceed USD 10,000, and potentially Form 8938, regardless of Montserrat's own domestic requirements.

Treaty Network

No comprehensive double tax agreement network was identified for Montserrat beyond the UK savings-income information-exchange arrangement noted above (an information-exchange instrument, not a full bilateral DTA). Montserrat's very small financial-services footprint (per the Tax Justice Network's Corporate Tax Haven Index, under 0.1% of multinational-corporation cross-border investment activity globally passes through Montserrat) is consistent with a minimal or nonexistent treaty network, though this is an inference from the jurisdiction's overall profile rather than a primary-source-confirmed zero.

Sources: Government of Montserrat - Income and Corporation Tax Act (primary legislation, residency/domicile framework), UK Legislation - Tax Information Exchange Agreement (Taxes on Income) (Montserrat) Order 2005, Montserrat IBC Formation and Benefits, Tax Justice Network - Montserrat Country Profile (Corporate Tax Haven Index). Page last verified: August 08, 2026. General information only - confirm current rates with a licensed advisor in this jurisdiction before relying on this page.