Taxes in Saint Lucia

The main legal bases include the Income Tax Act, VAT Act, Land and House Tax Act, Stamp Duty Act, Health and Citizen Security Levy Act 16/2023 and Tourism Development Act 1/2024. Saint Lucia uses the East Caribbean dollar (XCD), and no separate regional or municipal income-tax level is evidenced. For personal income tax, a resident and ordinarily resident individual is generally taxed on income from all sources. A resident who is not ordinarily resident is generally taxed on Saint Lucia-source income and on foreign income only when it is remitted to Saint Lucia. A non-resident is generally taxed on Saint Lucia-source income, while passive payments to non-residents may be subject to withholding on the gross amount. Chargeable personal income is taxed at 15% on XCD 0–15,000, 20% on XCD 15,001–30,000 and 30% above XCD 30,000. The personal allowance is XCD 25,000. Since 1 January 2025, specified allowances and deductions have a combined maximum of XCD 40,000. Further relief can include child allowances of XCD 5,000 for primary or secondary education and XCD 10,000 for tertiary education, a dependent-relative allowance of XCD 5,000, mortgage interest up to XCD 40,000, credit-union shares up to XCD 10,000, local and regional investments up to XCD 10,000, and expanded medical deductions. Pension income is fully exempt from 1 January 2025 when the applicable conditions are met. A resident Saint Lucian citizen aged 60 or older can also have up to XCD 6,000 of earned income exempt, excluding pension income, subject to the relevant conditions. A resident individual whose annual income exceeds XCD 17,400 generally files an income-tax return. Self-employed individuals generally file even when they report zero income or a loss. The usual filing deadline is 31 March, and a Tax Account Number (TAN) is required. Employers deduct Pay As You Earn (PAYE) from employee wages according to the employee's tax code and the applicable tables. PAYE, withholding tax and contract tax payments are generally due by the 15th of the following month; employers submit the annual PAYE remittance and TD5 forms by 31 January. Companies and individual enterprises need a TAN. A company registration normally includes its incorporation certificate, employee list and National Insurance Corporation data. Corporate income tax is generally 30% when the company is in good standing with the Inland Revenue Department and 33.3% when compliance or good standing is lacking. Every corporation normally files a return, including a corporation with no profit or an exemption. The statutory rule generally requires filing within three months after the financial year, although the public portal also states 31 March; the applicable deadline should therefore be confirmed with the Inland Revenue Department for the company's financial year. Value-added tax (VAT) is normally charged at 12.5%. Accommodation has a 7% VAT-inclusive rate, and the Inland Revenue Department guide lists 10% for other tourism providers. Some goods and services are zero-rated or exempt under the VAT schedules. VAT registration generally applies when taxable supplies reach XCD 180,000, with the application submitted within at least 10 working days of the relevant obligation. The Inland Revenue Department states a processing period of up to 15 working days, and voluntary registration may be available. VAT returns and payment are generally due within 21 days after the tax period. A registered business normally offsets eligible input VAT against output VAT. A recipient may owe 12.5% VAT on imported services, especially where the recipient is not registered or uses the service for exempt or non-taxable activities. A refund claim requires the VAT return and the relevant Customs declaration or receipt. The Health and Citizen Security Levy (HCSL) is generally 2.5% on imported goods calculated on the cost, insurance and freight value, and 2.5% on covered services supplied by a VAT-registered taxpayer. Customs collects the levy on goods and the Inland Revenue Department handles it for services. Exemptions apply to VAT-exempt or zero-rated goods and services, specified tourism services and other listed categories. The temporary zero-rating for essential food ended on 31 May 2026. Certain building materials are zero-rated from 1 July 2026 to 30 November 2030 under specified Customs Tariff Headings, and feminine-hygiene products are permanently zero-rated according to the government announcement. Imports may attract Customs Duty, Excise Tax, Service Charge and HCSL depending on the tariff classification and schedule. The importer or an authorised agent submits an ASYCUDA declaration. Customs may assign green clearance for immediate release, yellow for a document check, red for a full examination or blue for release followed by a post-clearance audit. Typical documents include the invoice, air waybill or bill of lading, Form 61 or 62, required permits and a certificate of origin when preferential treatment is claimed. Land and House Tax applies to property. Land of 10 acres or less is generally charged at zero; larger holdings use rates of XCD 0.25 per acre for more than 10 and fewer than 50 acres, XCD 0.50 per acre for 50 to fewer than 100 acres, XCD 0.75 per acre for 100 to fewer than 500 acres and XCD 1 per acre for 500 acres or more. Residential property is generally assessed at 5% of annual rental value, while commercial property is generally assessed at 0.25% of open-market value. A statutory residential exemption covered 2017–2023; property is generally taxable from 2024 unless a current order provides otherwise. Payment after assessment is generally due within 30 days, and an objection is generally due within 30 days. Stamp Duty on a property transfer is generally 2% of the value for the purchaser. A vendor who is not a Saint Lucian citizen, or a foreign company, generally pays 10%; a citizen or local company vendor follows a progressive schedule. Amendments applying in 2026 should be checked for the specific transaction. Approved tourism operators collect the Tourism Levy from visitors or customers. Current or legacy accommodation bands use US$3 or US$6 per person per night according to the room-rate band; guests aged 12–17 pay 50%, and children under 12 are exempt. The operator reports and remits the levy monthly to the Saint Lucia Tourism Authority. The Inland Revenue Department provides electronic registration, filing and payment. Individual TAN registration is generally completed the same business day and business or company TAN registration takes about three business days, with no registration fee. VAT registration has no fee. Tax clearance can take one to three business days when filings are current and no arrears remain. A payment plan may be discussed with a Collections Officer. Income-tax and VAT objections generally must be filed within 30 calendar days after the notice, although an extension may be available for reasonable cause. A tax amnesty runs until 31 December 2027 for eligible liabilities covering tax periods ending by 31 December 2025. It can waive 100% of interest and penalties for eligible income tax, VAT, property tax and other statutory liabilities, but the principal tax remains payable. Cross-border matters may involve the CARICOM Double Taxation Agreement, the United States FATCA Model 1 agreement, OECD Common Reporting Standard exchange, mutual administrative assistance, transfer-pricing rules, economic-substance requirements and anti-abuse rules. Treaty relief or a foreign-tax credit depends on the facts and does not create an automatic exemption.