All residents of Saint 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 Saint Lucia (IRD).
Corporation Tax 30%
Withholding tax 25%(Non-CARICOM Nationals)
Withholding tax 15%(CARICOM Nationals)
How to register with the 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.
2. 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)
3. Complete the Non-individual Enterprise registration form
4. Submit both forms and their supporting documentation to the Tax Roll Unit at the IRD
5. 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 one third (1/3) of the estimated tax for the year.
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.
Individual tax rates
Taxable Threshold or Personal Allowance: EC$ 18,000
First $10,000 thereafter – 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 each year. Tax return forms can be found at the offices of the IRD or on their website at www.ird.gov.lc
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 tax
The taxes are due within 30 days of the date on which the values of the property was determined by the IRD through a routine assessment.
Value Added Tax (Effective October 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.
Reduced – 10% on goods and services provided by hotels and other providers in the tourism sector.
Zero-rated – items taxed at 0%. For more information on these items please visit the VAT implementation office website at www.vat.ird.gov.lc. Electricity and water are zero-rated.
Exempt – the gods and services that are exempt from VAT cannot be charged VAT. (Final consumers do not pay VAT, VAT registered taxpayers cannot claim VAT on their purchases).
Persons and businesses 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 EC$180,000 in the previous twelve months or less; or
• It is reasonably expected to meet or exceed EC $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 EC $45,000.
How to register for VAT
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.