All residents of St. Lucia, including the self employed, Corporations, and Partnerships (regardless of profitability) are required to file an income tax return with the Inland Revenue Department of St. Lucia (IRD). Any changes to a taxpayers name or address should be communicated to the Tax Intelligence Department of the IRD via written correspondence or telephone.
Once registered, companies (including partnerships) and individuals are required to use the Tax Account number when they are conducting business with the IRD and Customs.
Corporation Tax 33.5%
Withholding tax 25%
How to register with the Inland Revenue Department (IRD)
1. Complete the registration form with the signature of a director or company secretary. The application should include a list of all the company’s employees with their NIC numbers and date of employment.
a. An Employee Declaration Form must be submitted to IRD within 14 days of the commencement of the employees’ employment to deduct the tax from employees’ earnings. The tax deduction tables provided by the IRD must be used by the employer to identify how much tax should be deducted from the workers’ pay based on their tax code (P.A.Y.E)
2. Complete the Non-individual Enterprise registration form
3. Submit the both forms and their supporting documentation to the Tax Roll
Unit at the IRD
4. The IRD will then issue a Tax Account Number. The registration form for a partnership should be signed by a partner and must be submitted along with:
i. Certificate of registration for the partnership;
ii. National insurance number for each partner
Payment of taxes
1. Taxes must be paid before March 25, June 25 and September 25 each income year. The amount to be paid at these respective times should be equivalent to (1/3) of the estimated tax for the year.
a. The estimated tax is calculated as 33 1/3% of the chargeable income for the preceding income year. The remainder of tax as estimated by the company must be paid by March 31 of the following year.
b. For companies that do not use a calendar year as their fiscal year, any outstanding tax must be paid within 3 months of the end of their financial year.
2. The Tax Account Number must be used on all correspondence to the IRD including remittances for P.A.Y.E., installments and any other tax.
3. Unpaid taxes will incur a late-payment penalty of ten percent (10%) as well as interest of 12.5% per annum.
Every corporation (non-profit or for profit), partnership and individual that has been granted exemptions on tax under the fiscal incentive regime must file a tax return with the local IRD.
Personal Income Tax
All resident individuals that have received over $17,400 by way of income in the taxable year are required to file tax returns. Forms are available at the IRD office or their website at www.ird.gov.lc.
Individual tax rates
First $10,000 – 10%
Next $10,000 -15%
ON THE NEXT $10,000 – 20%
ON THE BALANCE - 30%
How to register
1. The completed registration form must be submitted to the IRD with a suitable form of ID e.g. passport, drivers license, national ID or National insurance company card.
2. The self-employed must register according to the normal process for an individual as well as submit a certification of registration for their business.
Payment of taxes
Individual tax returns are due on March 31st per annum. Tax return forms can be found at the offices of the IRD or on their website at www.ird.gov.lc
Property Taxes in St Lucia
All property owners must declare any property that they own to the IRD within 30 days of becoming the owner. The following information should be provided at that time:
(1) The description, Block and Parcel number and area of the property.
(2) The mailing address and a contact number of the owner or representative.
(3) In the event that additions are made to a property, the owner should inform the Department of the change.
Payment of property tax
The taxes are due within 30 dates of the date on which the values of the property was determined by the IRD through a routine assessment.
Value Added Tax (Effective September 1st, 2012)
The Value Added Tax (VAT is charged when a taxable good or service is sold or provided
regularly whether or not for profit. Prices of all goods and services should be listed inclusive of VAT. All persons that provide such goods and services and meet the threshold requirements should become registered to charge the VAT.
Reduced – 8% on goods and services provided by hotels until April 2013 Zero-rated - items taxed at 0%. For more information on these items please visit the VAT implementation officer website at www.vat.ird.gov.lc. Electricity and water are zero-rated.
Persons and business that perform taxable activities are required to register and charge the VAT if they meet the required threshold. Only those businesses that are registered for
VAT with the IRD can charge VAT
Businesses trading in taxable supplies must register within ten working days (10) with the IRD if their taxable supplies or sales (goods and services):
· Meet or exceed $180,000 in the previous twelve months or less; or
· It is reasonably expected to meet or exceed $180,000 at the beginning of any
period of three hundred and sixty five days, and
· If in the first three months of trading their taxable supplies exceed $45,000.
How to register for Value Added Tax
1. Complete and submit the registration forms to the VAT Unit or the IRD in Castries. Forms are available from the VAT Unit or the IRD.
2. Sole traders - a copy of the Business Names’ Certificate should be submitted.
3. For a partnership, a copy of the Business Names’ Certificate should be forwarded to the Department
4. For a company, copies of the complete incorporation documents of when the company was incorporated need to be submitted.
5. Where there is a joint venture agreement, a copy of the joint venture agreement must be supplied.
The Comptroller may exempt from tax, capital goods imported, if the following conditions are satisfied before the importation:
· The importer is a registered person;
· The importer has a valid license under the Fiscal Incentives Act, Cap.15.16;
· The importer has not commenced taxable activity;
· The Minister of Finance approves of a Master List of the capital goods eligible for exemption;
· The goods are consigned directly to the approved importer;
· The capital goods eligible for exemption are goods to be used in a taxable activity;
· The importer whose investment has been approved under the Fiscal Incentives Act, Cap.15.16 has filed all required returns and paid all taxes due under all tax acts;
· The importer agrees to pay the amount of tax otherwise payable on the import of the capital goods if the importer violates the terms of the license agreement, if the importer’s registration is cancelled as a result of the expiration of the license, or if the registration is cancelled.