Revised Laws of Saint Lucia (2021)

2.   Interpretation

In this Act —

“banking business” has the meaning assigned to it under section 2 of the International Banks Act, Cap. 12.17;

“beneficial owner” means a natural person —

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   (a)     who ultimately owns or controls a relevant entity;

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   (b)     who exercises ultimate effective control over a legal person or legal arrangement, such as a senior manager; or

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   (c)     on whose behalf a transaction or activity is being conducted;

“Competent Authority” means the Minister as specified under section 4 or his or her delegate under section 6;

“Comptroller” means the Comptroller of Inland Revenue under the Income Tax Act, Cap. 15.02;

“core income-generating activity” means an activity specified under section 12;

“distribution and service centre business” means a business where the only or main activity is —

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   (a)     the purchase of raw materials and finished products from a foreign group entity and the resale of the materials for a profit; or

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   (b)     the provision of services to a foreign group entity;

“domestic company” means a company that operates in Saint Lucia and provides goods and services solely for Saint Lucia and is not part of a multinational enterprise group;

“economic substance requirements” means the economic substance requirements specified under section 11;

“entity” means an organisation created by one or more individuals to carry on a trade or business;

“financing and leasing” —

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   (a)     means providing a credit facility for consideration, including consideration —

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      (i)     by way of interest,

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      (ii)     by the provision of credit by way of installments for which a separate charge is made and disclosed to the customer in connection with —

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         (A)     the supply of goods by hire purchase;

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         (B)     financial leasing, excluding land and interests in land; or

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         (C)     conditional sale or credit sale, and

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      (iii)     where an advance or credit repayable by a customer is assigned to another person, to that other person;

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   (b)     does not include a banking business, an insurance business or an international mutual funds business;

“foreign group entity” means a member of a group that operates outside of Saint Lucia;

“group” includes —

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   (a)     a collection of two or more related entities that operate in or outside of Saint Lucia;

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   (b)     a parent, branch, subsidiary of an entity or a similar related entity;

“group entity” means a member of a group;

“headquartering” —

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   (a)     means the provision of services to a foreign group entity that are material for decision-making in that foreign group entity;

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   (b)     does not include —

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      (i)     shipping,

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      (ii)     insurance business,

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      (iii)     banking business,

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      (iv)     international mutual funds business,

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      (v)     financing and leasing,

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      (vi)     distribution and service centre business,

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      (vii)     activities of a company holding tangible assets;

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      (viii)     activities of a company holding intangible assets, or

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      (ix)     activities of a pure equity holding company;

“high risk intellectual property company” means —

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   (a)     an intellectual property company that owns an intellectual property asset that —

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      (i)     has been acquired from related parties or obtained through the funding of overseas research and development activities by another entity, and

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      (ii)     is licensed to related parties or otherwise generates income as a consequence of activities performed by foreign related parties; or

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   (b)     an intellectual property company that owns an intellectual property asset and does not carry out research and development as part of its core income-generating activity in Saint Lucia;

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   (Substituted by Act 15 of 2020)

“holding company” —

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   (a)     means a company that holds assets from which income in the form of interest, rent and royalties is derived;

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   (b)     includes —

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      (i)     a company holding tangible assets,

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      (ii)     a company holding intangible assets,

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   (Substituted by Act 15 of 2020)

“income from an intellectual property asset” includes —

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   (a)     royalties;

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   (b)     income derived from a franchise agreement; and

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   (c)     income derived from licensing the intellectual property asset;

“information” means a fact, statement or record in any form;

“insurance business” has the meaning assigned to it under section 2 of the International Insurance Act, Cap. 12.15;

“intellectual property asset” means —

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   (a)     a patent;

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   (b)     technical know-how;

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   (c)     an industrial design;

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   (d)     software that is subject to copyright;

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   (e)     an intangible asset that is non-obvious, useful or novel; and

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   (f)     other similar intangible assets that are functionally equivalent to a patent,

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   where such assets are legally protected and subject to an approval and registration process;

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      (Substituted by Act 15 of 2020)

“intellectual property company” means a company which holds, exploits or receives income from an intellectual property asset;

“international agreement” —

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   (a)     means a treaty, convention or an agreement that makes provision for the exchange of information;

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   (b)     includes an international agreement that is given legal effect under an enactment;

“international business company” has the meaning assigned to it under the International Business Companies Act, Cap. 12.14;

“international mutual funds business” means a class of regulated activity undertaken by a person in accordance with a licence issued under the International Mutual Funds Act, Cap. 12.16;

“material for decision making in the foreign group entity” includes —

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   (a)     the provision of senior corporate management to a group entity;

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   (b)     the assumption or control of risks for activities or assets owned by another group entity; and

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   (c)     advice to another group entity on the assumption or control of risks for its activities or assets;

“Minister” means the Minister responsible for finance;

“multinational enterprise group” means a group of associated companies with business establishments in two or more countries;

“partner jurisdiction” means a jurisdiction that is a party to an international agreement;

“premises” includes a place and a means of transport;

“pure equity holding company” means a company which only holds equity participations in other entities from which the only form of income means a company which only holds equity participations in other entities from which the only form of income derived are dividends and capital gains and which —

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   (a)     holds voting rights in another company;

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   (b)     has the right to appoint or remove a majority of the board of directors of that other company; or

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   (c)     controls alone, under an arrangement with other members, a majority of the voting rights in that other company;

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   (Substituted by Act 15 of 2020)

“Registrar” —

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   (a)     in the case of a company, means the Registrar of Companies under the Companies Act, Cap. 13.01;

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   (b)     in the case of an international business company, means the Registrar of International Business Companies under the International Business Companies Act, Cap. 12.14;

“relevant entity” —

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   (a)     means an entity that carries on economic activity in a relevant sector; and

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   (b)     includes —

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      (i)     a company incorporated or registered under the Companies Act, Cap. 13.01 or the International Business Companies Act, Cap. 12.14,

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      (ii)     a company that is incorporated outside of Saint Lucia and registered under the Companies Act, Cap. 13.01,

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      (iii)     a limited liability partnership that is registered under the Commercial Code, Cap. 244 of the Revised Laws of Saint Lucia 1957,

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      (iv)     an international trust,

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      (v)     an entity declared to be a relevant entity under section 9;

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   (c)     does not include —

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      (i)     a domestic company, or

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      (ii)     a relevant entity exempted under section 10;

“relevant sector” means a sector in which an entity carries on economic activity in Saint Lucia as listed under Schedule 1; (Amended by Act 15 of 2020)

“ship” —

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   (a)     includes a description of vessel used in navigation and is not propelled by oars;

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   (b)     does not include —

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      (i)     a fishing vessel,

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      (ii)     a vessel used primarily for sport or recreation,

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      (iii)     a harbour craft, or

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      (iv)     a vessel under twenty-four metres in length;

“shipping” —

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   (a)     means the operation of a ship in international traffic for income for the transport of passengers or cargo;

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   (b)     includes —

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      (i)     operations directly connected with, or ancillary to an operation under paragraph (a),

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      (ii)     any of the following activities —

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         (A)     the rental on a charter basis of a ship;

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         (B)     the sale of tickets or similar documents and the provision of services connected with the sale of tickets or similar documents, for the enterprise or any other enterprise;

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         (C)     the use, maintenance or rental of containers, including trailers and related equipment for the transport of containers, used for the transport of goods or merchandise; and

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         (D)     the management of the crew of a ship;

“ultimately own or control” —

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   (a)     means direct or indirect ownership or control of twenty-five per cent or more of shares, voting rights or ownership interest in a company;

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   (b)     includes ultimate effective control;

“vessel” has the meaning assigned to it under the Shipping Act, Cap. 13.27;

“year of income” has the meaning assigned to it under section 2 of the Income Tax Act, Cap. 15.02.