ACT
(Acts 1 of 1989, 18 of 1990, 7 of 1994, 8 of 1996, 24 of 1996, 11 of 1998,
12 of 1999, 9 of 2001, 14 of 2003, 15 of 2003, 7 of 2006, 11 of 2007,
2 of 2009, 1 of 2010, 2 of 2012, 3 of 2014, 12 of 2017, 12 of 2018, 5 of 2019, 16 of 2019, 8 of 2021, 21 of 2022, 19 of 2023, 20 of 2023 and Statutory Instruments 86/1985, 78/1990, 56/1996, 26/1997, 38/1997, 102/1997, 34/1999, 69/2000, 141/2000, 232/2000, 84/2001, 98/2001, 136/2001, 12/2003, 19/2003, 59/2003, 64/2003, 4/2004, 4/2007, 40/2007, 172/2007, 100/2008, 47/2010, 59/2010, 67/2010, 14/2011, 51/2011, 62/2011, 70/2011, 31/2013, 113/2015, 35/2018, 43/2018, 108/2019, 131/2019, 132/2019, 141/2019, 173/2019, 99 of 2021, 209/2021, 94/2023, 143/2023, 144/2023 and 164/2023)
Act 1 of 1989 .. in force: section 25(1)(j)(i): 1 June 1987
remainder: 1 January 1988
Amended by Act 18 of 1990 .. in force 26 January 1991
Amended by Act 7 of 1994 .. in force 25 September 1994
Amended by Act 8 of 1996 .. in force 25 September 1994
Amended by Act 24 of 1996 .. in force 9 May 1990
Amended by Act 11 of 1998 .. in force 2 May 1998
Amended by Act 12 of 1999 .. in force 27 March 1999
Amended by Act 9 of 2001 .. in force 23 June 2001
Act 14 of 2003 applies in respect of income year 2002. See section 2 and 3 of Act 14 of 2003.
Amendments to Schedule 2 by Act 15 of 2003 takes effect in respect of income year 2002. See section 5(2) of Act 15 of 2003.
Amended by Act 7 of 2006 .. in force 6 February 2006
Amended by Act 11 of 2007 .. in force 17 September 2007
Amended by S.I. 86/1995 .. in force 29 December 1995
Amended by S.I. 78/1990 .. in force 1 January 1988
Amended by S.I. 56/1996 .. in force 26 October 1996
Amended by S.I. 26/1997 .. in force 26 April 1997
Amended by S.I. 38/1997 .. in force 17 May 1997
Amended by S.I. 102/1997 .. in force 27 December 1997
Amended by S.I. 34/1999 .. in force 22 May 1999
Amended by S.I. 69/2000 .. in force 25 March 2000
Amended by S.I. 141/2000 .. in force 1 January 2000
Amended by S.I. 232/2000 .. in force 25 November 2000
Amended by S.I. 84/2001 .. in force 8 September 2001
Amended by S.I. 98/2001 .. in force 13 October 2001
Amended by S.I. 136/2001 .. in force 1 December 2001
Amended by S.I. 12/2003 .. in force 10 February 2003
Amended by S.I. 19/2003 .. in force 3 March 2003
Amended by S.I. 59/2003 .. in force 21 July 2003
Amended by S.I. 64/2003 .. in force 25 August 2003
Amended by S.I. 4/2004 .. in force 9 February 2004
Amended by S.I. 60/2004 .. in force 9 August 2004
Amended by S.I. 75/2004 .. in force 1 November 2004
Amended by S.I. 82/2004 .. in force 29 November 2004
Amended by S.I. 4/2007 .. in force 12 February 2007
Amended by S.I. 40/2007 .. in force 8 June 2007
Amended by S.I. 172/2007 .. in force 29 October 2007
Amended by S.I. 100/2008 .. in force 3 November 2008
Amended by Act 2 of 2009 .. in force 19 January 2009
Amended by Act 1 of 2010 .. in force 1 February 2010
Amended by S.I. 47/2010 .. in force 3 May 2010
Amended by S.I. 59/2010 .. in force 14 June 2010
Amended by S.I. 67/2010 .. in force 19 July 2010 (Repealed by S.I. 70/2011 .. in force 19 July 2011)
Amended by S.I. 14/2011 .. in force 14 March 2011
Amended by S.I. 51/2011 .. in force 30 May 2011
Amended by S.I. 62/2011 .. in force 27 June 2011
Amended by Act 12 of 2012 .. in force 1 January 2013
Amended by S.I. 31/2013 .. in force 13 May 2013
Amended by Act 3 of 2014 .. in force 20 January 2014
Amended by S.I. 113/2015 .. in force 15 December 2015
Amended by Act 12 of 2017 .. in force 27 November 2017
Amended by S.I. 35/2018 .. in force 23 April 2018
Amended by S.I. 43/2018 .. in force 7 May 2018
Amended by Act 12 of 2018 .. in force 12 December 2018
Amended by Act 5 of 2019 .. in force 11 February 2019
Amended by Act 16 of 2019 .. in force 3 July 2019
Amended by S.I. 108/2019 .. in force 31 July 2019
Amended by S.I. 131/2019 .. in force 30 September 2019
Amended by S.I. 132/2019 .. in force 30 September 2019
Amended by S.I. 141/2019 .. in force 14 October 2019
Amended by S.I. 173/2019 .. in force 30 December 2019
Amended by Act 8 of 2021 .. in force 13 September 2021
Amended by S.I. 99/2021 .. in force 28 June 2021
Amended by S.I. 209/2021 .. in force 28 December 2021
Amended by Act 21 of 2022 .. in force 14 November 2022
Amended by Act 19 of 2023 .. in force 31 July 2023
Amended by S.I. 94/2023 .. in force 31 July 2023
Amended by Act 20 of 2023 .. in force 17 August 2023
Amended by S.I. 143/2023 .. in force 13 November 2023
Amended by S.I. 144/2023 .. in force 14 November 2023
Amended by S.I. 164/2023 .. in force 27 December 2023
ARRANGEMENT OF SECTIONS
PART 1
PRELIMINARY
| 1. | Short title and application |
| 2. | Interpretation |
PART 2
ADMINISTRATION
| 3. | Comptroller of Inland Revenue |
| 4. | Delegation by Comptroller |
| 5. | Indemnity against liability for acts done |
| 6. | Secrecy |
PART 3
IMPOSITION OF INCOME TAX
Division 1 — Charge to Tax
| 7. | Charge to tax: general |
| 8. | Scope of charge to tax |
| 9. | Income accrued: meaning of |
| 10. | Income deemed to have accrued from sources whether in or outside Saint Lucia |
| 10A. | Income deemed to have accrued from a source outside Saint Lucia |
| 11. | Basis of assessment |
Division 2 — Persons Chargeable to Tax
| 12. | Persons chargeable: general |
| 13. | Married women |
| 14. | Minor children: dispositions to |
| 15. | Settlements and wills |
| 16. | Revocable dispositions |
| 17. | Deceased persons |
| 18. | Estates of deceased persons |
| 19. | Incapacitated persons |
| 20. | Insolvent persons |
| 21. | Partnerships |
| 22. | Non-resident persons |
| 23. | Transactions involving liability to tax |
| 24. | Responsibility of representative taxpayers |
PART 4
EXEMPT INCOME
| 25. | Exemptions |
| 26. | Exemption: hotels |
| 27. | Exemption: income from residential accommodation |
| 28. | Exemption: interest from housing mortgages |
| 29. | Exemption: interest paid on approved borrowings by mortgage companies |
| 30. | Comptroller may require Company to keep special account |
| 31. | Exemption: approved enterprises for fiscal incentive relief |
PART 5
ASCERTAINMENT OF ASSESSABLE INCOME
Division 1 — Gains or Profits forming Assessable Income
| 32. | Assessable income: general |
| 33. | Business income |
| 34. | Employment income |
| 35. | Loans or advances by a controlled company to a shareholder, director or higher paid employee |
| 36. | Rental income |
Division 2—Deductions allowable in ascertaining assessable income
| 37. | Deductions allowable : general |
| 38. | Deductions allowable : specific |
| 39. | Restrictions on deductions: management charges and certain payments by controlled companies to shareholder |
| 40. | Capital allowance |
| 41. | Deduction for losses |
| 41A. | Interpretation in respect of sections 41B to 41J |
| 41B. | Determination of subsidiary company |
| 41C. | Claim for group relief |
| 41D. | Companies joining group |
| 41E. | Relief obtainable once for the same amount |
| 41F. | Aggregate of claim |
| 41G. | Capital Allowances |
| 41H. | Tax recovery |
| 41I. | Exempt companies |
| 41J. | Profits and losses and distribution or charge on income vis-a-vis group relief |
| 41K. | Exemption from stamp duty |
| 42. | Deductions not allowable under more than one provision |
| 43. | Expenditure for which no deduction allowable |
PART 6
ASCERTAINMENT OF CHARGEABLE INCOME : DEDUCTIONS AND ALLOWANCES
| 44. | Concessional deductions: General |
| 45. | Personal allowance to individuals |
| 46. | Allowance for spouse |
| 47. | Deduction for maintenance or alimony |
| 48. | Deduction for maintenance of children |
| 49. | Deduction for education of certain children |
| 50. | Deduction for higher education |
| 51. | Allowance for housekeeper |
| 52. | Allowance for dependent relative |
| 53. | Deduction for contributions to life assurance, or other retirement benefits |
| 54. | Deduction for mortgage interest, rates and insurance on owner occupied property |
| 55. | Deduction for gifts for certain approved purposes |
| 56. | Deduction for medical expenses |
| 57. | Deductions for payments to co-operative or building society |
| 58. | Deduction for interest on student loan |
| 59. | Deductions for purchase of new shares in a Resident Public Company |
| 59A. | Deduction for hobby farming |
| 59B. | Deduction for community road rehabilitation works project |
| 59C. | Deduction for the purchase and installation of photovoltaic systems |
PART 7
SPECIAL PROVISIONS RELATING TO CERTAIN TAXPAYERS
Division 1 – Variation of Normal Bases of Taxation
| 60. | International agreement for the avoidance of double taxation |
| 61. | General insurance companies and associations of underwriters |
| 62. | Life assurance companies |
| 63. | Approved pension funds |
| 64. | Deductions dependent on place where fund established |
| 65. | Interpretation of this Part |
| 66. | Applications for registration |
| 67. | Conditions subject to which registration may be granted |
| 68. | Permitted provisions in annuity contracts |
| 69. | Registration |
| 70. | Change in annuity contracts |
| 71. | Withdrawal of registration |
| 72. | Comptroller to be notified of payments under annuity contract and to be provided with returns |
| 73. | Allowable deductions |
| 74. | Deductions for payments to a RHOS plan |
| 75. | Tax Credit in respect of Foreign Currency from Income Year 2001 onwards |
| 75A. | Employee retention tax credit |
| 75B. | Eligibility for employee retention tax credit |
| 75C. | Application for an employee retention tax credit |
| 75D. | Application period for an employee retention tax credit |
| 75E. | Approval of an application for an employee retention tax credit |
| 75F. | Refusal of an application for an employee retention tax credit |
Division 2 — Withholding Tax on Payments to Non-Residents and Deduction of Tax by Employers, by Companies and from Payments to Contractors
| 76. | Deduction of tax from payments made to non-resident |
| 77. | Deduction of tax by employers |
| 78. | Deduction of tax from payments to contractors |
| 79. | Indemnification for tax paid to Comptroller |
PART 8
ASCERTAINMENT OF TAX PAYABLE
| 80. | Rates of tax |
| 81. | Credit for tax deducted or paid |
| 82. | Credit for tax paid outside Saint Lucia |
| 83. | Calculation of tax credit for foreign tax |
PART 9
RETURNS AND NOTICES
| 84. | Returns of income: general |
| 85. | Returns of income: cessation of income during any year of income |
| 86. | Returns of income: where no return furnished |
| 87. | Further return or information, production of books and giving of evidence to Comptroller |
| 88. | Examination of business records |
| 89. | Powers of entry |
| 90. | Maintenance of proper records of transactions, methods of accounting and preservation of books of account and records |
| 91. | Submission of accounts with return of income and certificate relating to preparation of accounts |
| 92. | Principal officer of company |
| 93. | Precedent partner of partnership |
| 94. | Returns deemed to be furnished by due authority and in full knowledge of contents |
| 95. | Returns: method of furnishing |
| 96. | Returns: extensions of time for furnishing |
PART 10
ASSESSMENT OF TAX
| 97. | Assessments |
| 98. | Additional assessment |
| 99. | Transactions designed to avoid liability to tax |
| 100. | Reduced assessments |
| 101. | Determination of assessed loss |
| 102. | Time limits for assessments |
| 103. | Notice of assessment |
| 104. | Record of assessment |
| 105. | Finality of assessment |
PART 11
OBJECTIONS AND APPEALS
| 106. | Objection to assessment |
| 107. | Decision by Comptroller on objection |
| 108. | Appeal Commissioners |
| 109. | Appeal from decision by Comptroller |
| 110. | Hearing by Appeal Commissioner |
| 111. | Right of further appeal |
| 112. | Payment of tax suspended by objection or appeal |
PART 12
PAYMENT, RECOVERY AND REFUND OF TAX
| 113. | Advance payment of tax |
| 114. | When tax is due and payable |
| 115. | Interest on unpaid tax |
| 116. | When tax deducted from remuneration, payments to contractors or payments to non-residents is due and payable |
| 117. | Interest on unpaid tax deductions |
| 118. | Recovery of tax by court action |
| 119. | Recovery of tax by distraint |
| 120. | Obstruction of officers |
| 121. | Recovery of tax as privileged debt by registration as judgement debt |
| 122. | Recovery of moneys from persons leaving Saint Lucia |
| 123. | Recovery of tax from assets of certain dispositions |
| 124. | Recovery of tax from representative taxpayer |
| 125. | Right of representative tax payer to indemnity |
| 126. | Personal liability of representative taxpayers |
| 127. | Recovery of tax from persons holding money for another person |
| 128. | Priority of tax debt upon bankruptcy or liquidation |
| 129. | Refund of tax overpaid |
| 130. | Remission of tax |
PART 13
OFFENCES
Division 1 – Civil Penalties
| 131. | Penalties: general |
| 132. | Penalties: failure to furnish return of income |
| 133. | Penalties: failure to furnish correct return of income |
| 134. | Penalties: failure to pay tax by due date |
| 135. | Penalties: failure to deduct tax or account for tax deducted |
| 136. | Penalties: failure to comply with notice to give information, produce documents or give evidence to Comptroller |
| 137. | Notice of intention to impose penalty to be given |
Division 2 – Criminal Proceedings
| 138. | Sanction for prosecution |
| 139. | Offences: breach of secrecy |
| 140. | Offences: failure to comply with requirements of the Act |
| 141. | Offences: intent to evade liability to tax |
| 142. | Offences: deduction of withholding tax and tax from payments to contractors |
| 143. | Offences: by employers or employees |
| 144. | Offences: evasion of tax in relation to deduction of tax by employer |
| 145. | Aiding or abetting an offence |
| 146. | Mitigation of penalties and compounding of offences |
| 147. | Time limits for proceedings to be taken |
PART 14
MISCELLANEOUS
| 148. | Forms of notices and returns |
| 149. | Service of notices or documents |
| 150. | Change of address for service of notice |
| 151. | Regulations |
| 152. | Amendment of Schedules and rates specified in the Act |
| 153. | Saving |
| Schedule 1 | |
| Schedule 2 | |
| Schedule 3 | |
| Schedule 4 | |
| Schedule 5 | |
| Schedule 6 | |
| Schedule 7 | |
| Schedule 8 | |
| Schedule 9 | |
AN ACT to revise and consolidate the law relating to income tax.
Commencement [Section 25(1)(j)(i): 1 June 1987]
[Remainder: 1 January 1988]