by Linda
(Scotland)
I've been avidly reading this magnificent site. Thank you for your hard work in producing it - an absolutely invaluable resource.
I wonder if you could please expand on the 6% stabilization levy you mention? I'm not sure I completely understand it.
You advise that "half of it caps to about $5000 a month." Say, if you had a monthly income of $7000 are you saying you would be taxed at 6% only up to $5000? But then what do you mean by 'half of it'?
And what if you are living off capital (not from income from a pension - just capital) because you no longer work? Does the stabilization levy apply then?
I also have a question - seeing as you have filled in one yourself - what does a medical report ask of one? At least one member of my family has had a (non-communicable) illness in the past and another has a chronic (also non-communicable) condition.
Neither requires medical attention other than a prescription and (for one) yearly scans. Would this preclude a move to Anguilla on medical grounds? Obviously we would buy private medical insurance.
Many thanks for your generous time.
Best wishes,
Linda
Reply by Dad The "Interim" Stabilization Levy is looking less interim Linda. It was extended into 2013 and will almost surely be into 2014. Once government gets habituated to a tax, it never comes off.
I am reminded of Canadian income tax, introduced during World War I. 3%, I believe, as a "temporary" measure to fund the war. The war stopped. But, well, you know the rest!
Anguilla's "temporary" Stabilization Levy is 6%, half to be paid by the employer, half by the employee. Beyond approximately $5,000/month, income is not taxed. I believe that has not changed.
However, those earning less than EC$2,000 (approx US$750) per month are NOT subject to this tax. That was a positive change.
The "half," Linda, is "half employer" and "half employee." If you are self-employed, you pay the full 6%.
So yes, if you earn $7,000, I believe that income beyond $5,000 is tax-free. I am not 100% sure if that cap remains, though. Please check with Eustella, our attorney, to be sure.
NO other form of income is taxed. So capital gains, dividends, interest are all tax-free.
Capital itself is not taxed. I don't know of a country where it currently is. That's just plain theft.
I forget the medical report's details, but it's fairly innocuous. The medical conditions you describe do not sound serious enough to warrant exclusion. I'd need more details to be sure about that.
Note that, depending on the conditions, private insurance companies may exclude those conditions from coverage or add a rider to cover them, for which you would pay more.
Again, it depends on the conditions.
Good luck!
P.S. If anyone knows of any updates to this, please comment.
