Schedule 3
(Sections 76, 80, 87, 90 and 142)
DEDUCTION OF TAX FROM PAYMENT TO NON-RESIDENTS
1. Application
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(1) This Schedule applies to every person who makes any payment by way of —
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(a) royalty;
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(b) management charges;
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(c) commission or fee, not being in respect of an employment to which section 77 applies;
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(d) interest or discount;
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(e) the distribution of income of a trust being income of the kind specified in paragraphs (a) to (d);
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(f) premiums including insurance premiums but excluding re-insurance;
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(g) any other payments of an income nature and excludes the following payments —
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(i) dividends,
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(ii) lease, premium or licence,
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(iii) annuities or other periodic payments such as payments by way of alimony or maintenance,
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to a non-resident, and subject to subparagraph (2) does not apply to any other payments to a non-resident carrying on business or exercising employment in Saint Lucia.
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(Substituted by S.I. 59/2010)
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(2) This Schedule also applies to any payment to a non-resident person in respect of the independent personal services performed in Saint Lucia other than by way of carrying on a business in Saint Lucia through a permanent establishment in Saint Lucia.
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(3) Where the accounts of a business are maintained on an accrual basis, and during a year of income any amount of the kind specified in subparagraph (1) is charged as an expense but payment is not made, tax shall be deducted and accounted for to the Comptroller as if payment had been made on the last day of such income year.
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(4) For the purposes of proviso (a) to paragraph 2, where the income accruing to a trust is of different kinds, it shall be treated as retaining such character for determining the rate of tax to be deducted therefrom by the trustee.
2. Deduction to be made by person making payment
Where any payment is made to which this Schedule applies, then such amount shall not form chargeable income of the person to whom the payment is made and the person making such payment shall deduct tax from the gross amount of such payment at the rate specified in paragraph 3. However—
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(a) where income accrues to a trust, and a non-resident beneficiary is entitled to the immediate benefit of the whole or part thereof, the trustee shall deduct and account for the tax required to be deducted under this Schedule;
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(b) where income which accrues to a non-resident is payable to a bank or other agent on his or her behalf, then for the purposes of collection, such bank or agent shall deduct and account for the tax required to be deducted under this Schedule;
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(c) where income which accrues to a non-resident is payable by another non-resident then, for the purpose of collection of the tax imposed by this section, the Comptroller may issue an assessment directly on the non-resident to whom the income accrues and the general provisions of Part 12 relating to the recovery of tax shall apply;
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(d) where income accrues to a non-resident in respect of rental of residential accommodation provided in Saint Lucia the provisions of Parts 5 and 6 apply and in that case the tax payable shall be at the rate provided in Schedule 5.
3. Rate of tax to be deducted
Subject to section 60, and paragraph 2, the rate of tax to be deducted on any payment of the kind specified in —
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(a) paragraph l(a), (b), (c), (e), (f) and (g) is 25%;
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(b) paragraph 1(d) is 15%.
This is the final liability in respect of such income
(Substituted by S.I. 59/2010)
4. Certificate and record of payments made and tax deducted
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(1) Every person who has deducted any tax under this Schedule shall furnish to the person to whom payment is made a certificate showing the gross amount of the payment made and the tax deducted therefrom.
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(2) Every person making any payment to which this Schedule applies shall maintain a record showing in relation to each calendar year—
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(a) the nature of the payment;
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(b) the gross payment made to each non-resident; and
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(c) the tax deducted therefrom,
and such record shall be kept available for examination by the Comptroller as and when required for any period not exceeding 6 years.
5. Returns of deduction and remittances of tax
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(1) Every person shall, when making any payment under section 116, furnish a return in such form as the Comptroller may approve showing the amount of tax deducted and remitted, together with a copy of all certificates issued under paragraph 4 in respect of such deductions of tax.
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(2) Every person to whom this Schedule applies, shall in respect of each calendar year, within 2 months after the end of such year or within such further time as the Comptroller may allow, furnish to the Comptroller a return in such form as he or she may approve showing the total of tax deducted by that person during such year and the total payments of such tax which have been made to the Comptroller.
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(3) In the event of there being any deficiency between the total amount of tax deducted in any year and the total payments of such tax made to the Comptroller, that person shall be required to account to the Comptroller for such deficiency.
6. Personal liability where failure to deduct tax
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(1) Where any person fails to deduct any tax under this Schedule he or she shall, in addition to any penalty for which he or she may be liable, be personally liable to pay to the Comptroller within the time specified in section 116 the amount which he or she has failed to deduct.
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(2) Where any person pays to the Comptroller the amount of tax which he or she failed to deduct, such amount shall be deemed to have been deducted under this Schedule.
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(3) The person making any payment to the Comptroller under this paragraph is entitled to recover such amount from the person to whom payment was made.
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(4) Where any person has failed to deduct tax as required under this Schedule but the Comptroller is satisfied that tax deducted from earlier or later payments is sufficient to meet the amount of tax which he or she has failed to deduct, the Comptroller may absolve such person from his or her liability under subparagraph (1).