(1) Despite anything contained in the Income Tax Act there shall be levied on the chargeable income of a free zone business within a free zone, income tax at the rates prescribed in Schedule 1.
(2) In the computation of income tax under this section, there shall be given credits in accordance with the number of citizens of Saint Lucia employed on a continuous basis by every free zone business in accordance with the scale prescribed in Schedule 2.
(3) During the first 5 years of its operation, a free zone business shall be exempt from income tax or capital gains tax or any new corporate tax levied by the Government of Saint Lucia after the commencement of this Act. (Amended by Act 11 of 2018)
(4) Where a free zone business incurs a total net loss over the 5 year tax holiday specified in subsection (3) that loss may be carried forward and deducted against profits in the 3 years following the tax holiday period.
(5) Any proceeds from the sale of stock or other partial or complete ownership interest in a free zone business shall be exempt from tax levied under this section.
(6) The tax levied under this section shall be collected by the Comptroller of Inland Revenue and the Income Tax Act shall, subject to this section and any regulations made under this Act, apply to the collection of tax, and any appropriate action may be taken under the Income Tax Act against a defaulter.
(7) A free zone fee equal to the sum of 5% of tax collected by the Comptroller of Inland Revenue under this section in any year of assessment shall be placed to the credit of the FZMA.
(8) The FZMA shall be exempt from all taxes.
(9) Despite the Income Tax Act gross receipts tax and any form of value added tax shall not apply within a free zone.