(1) Upon incorporation an international business company may elect—
(a) to be exempted from income tax; or
(b) to be liable to income tax on the chargeable income of the international business company at a rate of 1% in accordance with the Income Tax Act.
(2) Despite any provisions of the Income Tax Act an international business company that elects to be exempt from tax under subsection (1)(a) shall not be required to file any tax returns, but an international business company that elects to pay tax under subsection (1)(b) shall file an annual tax return based on annual audited or unaudited financial statements. (Amended by Act 13 of 2012)
(3) An international business company shall not be subject to withholding, capital gains or other like taxes except for income tax for an international business company making an election as provided for in subsection (1)(b).
(4) For purposes of this section, an international business company shall not be considered to be doing business in Saint Lucia solely because it engages in one or more of the following activities—
(a) maintaining one or more bank, trust or securities accounts in Saint Lucia;
(b) holding meetings of directors or members in Saint Lucia;
(c) maintaining corporate or financial records in Saint Lucia;
(d) maintaining an administrative or managerial office in Saint Lucia with respect to assets or activities outside Saint Lucia;
(e) maintaining a registered agent or registered office in Saint Lucia; or
(f) investing in stocks or entities doing business in Saint Lucia or being a partner in a partnership existing under the laws of Saint Lucia or a beneficiary of a trust or estate which has Saint Lucia as its situs.
(5) Despite any provision of the Stamp Duty Act to the contrary—
(a) an instrument relating to transfers of any property to or by an international business company;
(b) an instrument relating to transactions in respect of the shares, debts obligations or other securities of an international business company; or
(c) an instrument relating in any way to the assets or activities of an international business company,
is exempt from the payment of stamp duty.
(6) Where an international business company does not elect either to be exempted or to be liable to tax in accordance with subsection (1), it will be deemed to be exempted from income tax.
(7) An international business company, which is deemed to be exempted from income tax or which has elected not to be liable to tax, may by notice filed with the Registrar, by the registered agent acting on the authority of the directors, elect to be liable to income tax at the rate of 1% from the date of the election.
(8) An international business company that has made an election to be liable to tax at the time of incorporation, or a company that subsequently elected to pay tax in accordance with subsection (7), will be bound by such election for the life of the company.
(9) This section only applies to a company incorporated prior to the 1st day of December, 2018 and continues to apply to that company until the 30th day of June, 2021. (Inserted by Act 13 of 2018)
(Amended by Acts 14 of 2002 and 29 of 2003)