Revised Laws of Saint Lucia (2021)

PART 4
EXEMPT INCOME

25.   Exemptions

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   (1)   There is exempt from the tax—

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      (a)     the official emoluments of the Governor General, Deputy Governor General and of any Acting Governor General, any gratuity or pension payable to a former Governor or Governor General upon his or her retirement, any gratuity payable to his or her legal personal representative upon the death of a former Governor or Governor General and any pension payable to the widow of a former Governor or Governor General upon his or her death;

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      (b)     the official emoluments payable in respect of their offices to—

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         (i)     heads of diplomatic missions and consulates accredited to Saint Lucia,

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         (ii)     members of the staff of such missions and consulates, except such persons who are citizens of or ordinarily resident in Saint Lucia;

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      (c)     the official emoluments payable by —

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         (i)     any international organization of which Saint Lucia and one or more other countries are member, or

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         (ii)     any other Government,

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         in connection with the provision of any technical cooperation services, to the extent and subject to such conditions as may be prescribed by any enactment or in any agreement or memorandum of understanding entered into by the Government;

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         (Substituted by Act 2 of 2009)

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      (d)     any war pension (including any disability pension) or gratuity in respect of service during war;

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      (e)     any amount accruing under a scholarship or similar education grant to a person receiving full time education at a school, college, university or other educational establishment;

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      (f)     any interest accrued on any loan charged on the public revenue, which is declared by the Minister to be exempt;

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      (g)     any income accrued to any individual by way of—

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         (i)     interest on a deposit in any bank in Saint Lucia, or

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         (ii)     (Deleted by S.I. 51/2011);

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      (h)     (Deleted by S.I. 14/2011);

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      (i)     any amount accrued by way of gratuity on the termination of a contract of employment, however, this exemption does not apply—

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         (i)     if the contract is renewed, extended or replaced by a new contract with the same employer or associate of that employer, or

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         (ii)     to any part of the gratuity in excess of 25% of the gross income of the employee for the period;

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      (j)     any income accrued to—

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         (i)     an individual for his or her office, or

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         (ii)     such an individual or his or her dependents by way of pension in respect of his or her past services;

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      as a minister of religion or other person in Holy Orders in the service of any religious body approved for this purpose by the Minister;

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      (k)

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         (i)     the first $6,850, or

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         (ii)     the first $6,000,

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      of any income accruing from a source in Saint Lucia by way of pension for past services, being payable—

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      (A)     by the Government or an approved pension fund;

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      (B)     by a pension fund which is not an approved fund or directly by an employer where, and to the extent to which, the Comptroller is satisfied that such pension is reasonable in amount having regard to the length of service to the employer, the age or state of health of the employee and the remuneration payable to him or her prior to his or her retirement; or

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      (C)     earned income other than a pension, in the case of a resident individual, who is a citizen of Saint Lucia and has reached the age of 60 years;

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      (l)     any pension accruing from a source outside Saint Lucia to any retired person, who, prior to his or her retirement, was not resident in Saint Lucia;

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      (m)     any benefits payable under the National Insurance Corporation Act to any person by way of—

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         (i)     sickness benefit,

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         (ii)     invalidity benefit,

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         (iii)     maternity benefit,

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         (iv)     funeral grant, or

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         (v)     any child allowance payable as a survivor's benefit or death benefit;

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      (n)     the income of any approved pension fund;

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      (o)     the income of any local authority as defined in the Local Authorities Act, 1916;

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      (p)     the income of any trade union in so far as such income is not derived from a business carried on by it;

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      (q)     the income of any registered building society or co-operative society;

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      (r)     the income of any religious, charitable, or educational institution of a public character in so far as such income is not derived from a business carried on by it for profit, other than a business carried on for the primary purpose of assisting disabled persons to learn or exercise a trade or skill;Editor's note: Incorporated Trustees of the Presentation Brothers is declared to be an Educational institution of a public character by Gazette Notice 267/1958.

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      (s)     the income of the National Insurance Fund established under the National Insurance Corporation Act;

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      (t)     the income of the Saint Lucia Banana Growers Association; the Windward Islands Banana Growers Association; and the Saint Lucia Agriculturists Association Limited;

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      (u)     the income of the Caribbean Development Bank, and the Council of Legal Education;

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      (v)     any travel, subsistence, entertainment, telephone, housing or transport allowance paid to any member of Parliament or any public officer in connection with the carrying out of the duties of his or her office;

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      (w)     the official emoluments, allowances and pensions payable in respect of their offices to the Chief Justice and other judges of the Eastern Caribbean Supreme Court;

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      (x)     distributions from companies;

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      (y)     any income accruing to any individual from fishing or agriculture, including horticulture and the use of land for husbandry including the keeping or breeding of livestock or poultry or the growing of crops of fruit or vegetables. However, this paragraph shall not be construed to set off the losses incurred from the activities specified in this paragraph against income from any other source or activity;

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      (z)     any income earned on securities issued by member governments of the Eastern Caribbean Central Bank;

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      (za)     interest earned on loan to the Government of Saint Lucia in accordance with statutory instruments 15/1997 and 25/1997 until the payment of the loan authorised under these 2 statutory instruments;

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      (zb)     interest earned on loan to the Saint Lucia Development Bank and National Commercial Holding Ltd by the Barbados Mutual Life Assurance Society and Life of Barbados Ltd. until the payment of the loan authorised under statutory instrument 15/1997 and 25/1997;

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      (zc)     the income earned by way of tips by artistic, entertainment and sports personnel, office clerks, customer service clerks, housekeeping and restaurant service workers and other employees in similar categories working in restaurants and hotels but excluding managers and heads of department. In this paragraph—

“hotel” includes guesthouse, inn or any commercially run establishment which engages in the business of providing accommodation for guests;

“tips” includes any amount paid by a guest as a gratuity for services rendered by an employee of a hotel or restaurant, and includes service charge;

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   (zd)     the income earned by public officers as a result of the retroactive salary increase payable for the period 1 April 1995 to 31 March 1999 until the payment of that retroactive salary increase;

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   (ze)     income earned by way of bonus approved to be paid to certain categories of civil servants in the 1998/1999 Budget presentation until the payment of the sum of $2 million approved to be paid to certain categories of civil servants in the 1998/1999 Budget;

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   (zf)     bonds in the amount of EC$20 million issued for the funding of the low income housing initiative of the National Commercial Bank Mortgage Financial Company of Saint Lucia Limited;

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   (zg)     profits earned by the National Insurance Property Development & Management Company Ltd. on development fees and project management fees gained under the refurbishment of police stations project;

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   (zh)     any income accruing from trading in securities under the Securities Act to any citizen or resident of any member State of the Organisation of Eastern Caribbean States or to any company incorporated in and registered in any member State of the Organisation of Eastern Caribbean States;

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   (zi)     income earned on the emolument paid to professional staff of the Financial Centre Corporation and the International Financial and World Investment Corporation;

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   (zj)     income tax chargeable on returns from investments in the Production Section Equity Fund;

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   (zk)     the income of consultants and staff of the Project Coordination Unit, OECS Emergency Recovery and Disaster Management Project;

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   (zl)     the income of the Project Coordinator and individual Consultants of the World Bank Technical Assistance Water Sector Reform Project;

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   (zm)     lump sum payment of $850 in lieu of retroactive pay for the year April 2001 to March 2002 made in December 2003 to all public servants inclusive of those employed after March 2002 and still employed in the Public Service as at December of 2003;

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   (zn)     the income earned by public officers as a result of the retroactive salary increase payable for the periods April 2002 to March 2003 and April 2003 to December 2003;

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   (zo)     the income arising from CWC 2007 and earned by —

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   (i)     CWC 2007 Inc., ICC and its members, IDI, GCC and WICB and its members and their respective advisers not ordinarily resident in Saint Lucia,

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   (ii)     a member of a squad,

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   (iii)     a CWC 2007 Inc. official, or

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   (iv)     staff of ICC, IDI or GCC.

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   In this paragraph —

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   “CWC 2007 Inc.” means ICC Cricket World Cup West Indies 2007 Inc., a company incorporated in the British Virgin Islands;

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   “CWC 2007 Inc. official” means the Chairman, Vice Chairman, members of the Board, Chief Executive Officer, Financial Controller, Secretary or Manager of CWC 2007 Inc.;

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   “GCC” means Global Cricket Corporation Pte Limited, a company incorporated in Singapore as Company No. CRN200008431R and its successors or assigns;

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   “ICC” means the International Cricket Council, a company limited by guarantee and incorporated in the British Virgin Islands as Company No. 9112;

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   “IDI” means ICC Development (International) Limited, a company incorporated in the British Virgin Islands as Company No. 90940;

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   “income” includes basic salary, appearance fees, endorsement fees, prize money, and man-of-the match and man-of-the-series awards;

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   “WICB” means the West Indies Cricket Board Inc., a company incorporated in the British Virgin Islands as Company No. 302180;

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   (zp)     the income of expatriate Commissioners appointed to review the terms and conditions of employment of medical practitioners and nurses;

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   (zq)     the income earned by way of back pay to non-established and fortnightly paid workers who are affiliated with the National Workers Union;

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   (zr)     the income earned by way of back pay to non-established and fortnightly paid workers who are affiliated with the National Workers Union for the triennium April 2001 to March 2004;

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   (zs)     income arising from trading in securities other than by way of a business on an exchange licensed by the Eastern Caribbean Securities Regulatory Commission pursuant to the Securities Act, Cap. 12.18;

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   (zt)     contributions to the captive insurance fund established by the Saint Lucia Electricity Services Company Limited;

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   (zu)     the income earned by public officers as a result of the retroactive salary increase payable for the period 1 April 2007 to 30 September 2008 until the payment of that retroactive salary;

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   (zv)     the income earned by public officers as a result of the retroactive salary increase payable for the period 1 April 2009 to 31 March 2010 until the payment of that retroactive salary;

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   (zw)     the repayments made by the Bank of Saint Lucia Limited to the European Investment Bank with respect to the principal, interest and other sums pertaining to the Line of Credit for US$15 million;

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   (zx)     any income accrued by the company known as Petrobras International Braspetro B.V. (PIB B.V.), a company incorporated in the Netherlands with registration number 24339383 and situated at Prins Bernhardplein 200, 1097 JB Amsterdam, the Netherlands;

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   (zy)     any income accrued by the company known as Petrobras Global Trading B.V. (PGT B.V.), a company incorporated in the Netherlands with registration number 52606171 and situated at the 4th floor, 722 Weena, Rotterdam 3014 AD, the Netherlands;

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   (zz)     a seventy 5% waiver of income tax liabilities of Windward and Leeward Brewery Limited on profits attributable to sales of Piton products for a period of 5 years, commencing on the 1st day of January, 2011 and terminating on the 31 December, 2015;

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   (zza)     the income earned by the owner of a public omnibus as a result of providing transport to the public;

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   (zzb)     the income earned by SMJ (St. Lucia) Ltd. for a period of one year commencing on the 1^st day of March, 2018 and terminating on the 28^th day of February, 2019;

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   (zzc)     the income earned by KM² Solutions St. Lucia, Ltd. for a period of 5 years commencing from the 1^st day of February, 2018 and terminating on the 31^st day of January, 2023;

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   (zzd)     any income accruing or any amount accrued by way of gratuity, on the termination of a contract, to an individual appointed by the Judicial and Legal Services Commission for his or her office as —

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      (a)     a magistrate;

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      (b)     the registrar of the High Court and the assistant registrar of the High Court;

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      (c)     a public officer in the department of the Attorney General, including —

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         (i)     the Solicitor General,

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         (ii)     a Crown Counsel,

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         (iii)     the Director of Legislative Drafting,

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         (iv)     the Deputy Director of Legislative Drafting,

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         (v)     a Legal Drafter,

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         (vi)     the Registrar of Companies and Intellectual Property,

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         (vii)     the Deputy Registrar of Companies and Intellectual Property;

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      (d)     a public officer in the department of the Director of Public Prosecutions;

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   (zze)     the income earned by Trust Media Corporation Limited for a period of 5 years commencing from the 1^st day of June 2019 and terminating on the 31^st day of May, 2024;

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   (zzf)     the income payable to an individual who, for the period of April, 2007 to March, 2010, held the office of —

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      (a)     Cabinet Minister;

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      (b)     Member of the House;

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      (c)     Member of the Senate;

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      (d)     Minister of State;

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      (e)     Parliamentary Commissioner;

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      (f)     Parliamentary Secretary;

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      (g)     President of the Senate;

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      (h)     Speaker of the House;

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   (zzg)     the income earned by a contractor and a consultant of the Hewanorra International Airport Redevelopment Project, including an employee and a sub-consultant who is a non-national;

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   (zzh)     the income earned by a company contracted to design, supervise, construct and provide project management for the Hewanorra International Airport Redevelopment Project;

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   (zzi)     from the 1^st day of August, 2019, any income accruing or an amount accrued by way of gratuity, on the termination of a contract, to an individual appointed by the Judicial and Legal Services Commission for his or her office —

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      (a)     under the Civil Status Act, Cap. 4.02 as —

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         (i)     the Registrar of Civil Status,

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         (ii)     a Deputy Registrar of Civil Status,

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         (iii)     an Assistant Registrar of Civil Status,

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         (iv)     an Adjudicator of Civil Status; and

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      (b)     as a Legal Officer of the Supreme Court;

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   (zzj)     any income accrued or accruing to an individual, on the termination of his or her employment, by way of severance or redundancy pay, except notice pay, vacation pay or other income or employee benefit that is not ordinarily considered to be severance or redundancy pay;

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   (zzk)     with respect to the Roads Improvement and Maintenance Programme (Phase IV) Project, any profit earned by Overseas Engineering and Construction Co. Ltd. or the income accrued by a person who is —

     (i)     a non-national, and

     (ii)     employed by Overseas Engineering and Construction Co. Ltd.;

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   (zzl)     with respect to the Project for Reconstruction of Bridges in the Cul-De-Sac Basin, any profit earned by Hazama Ando Corporation and Nippon Koei Co. Ltd. or the income accrued by a person who is —

     (i)     a non-national, and

     (ii)     employed Hazama Ando Corporation or Nippon Koei Co. Ltd.

(Amended by Acts 18 of 1990, 24 of 1996, 11 of 1998 and 9 of 2001 and S.I.s 78/1990, 56/1996, 26/1997, 38/1997, 102/1997, 102/1997, 34/1999, 69/2000, 141/2000, 232/2000, 98/2001, 136/2001, 12/2003, 19/2003, 59/2003, 4/2004, 60/2004, 75/2004, 82/2004, 4 of 2007, 40 of 2007, 172/2007, 100 of 2008, 47/2010, 67/2010, 62/2011, 70/2011, 31/2013, 113/2015, 35/2018, 43/2018, 108/2019, 131/2019, 132/2019, 141/2019, 173/2019, 99/2021 and 209 of 2021)

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   (2)   The exemptions specified in subsection (1) may be added to, deleted or otherwise varied by order made by statutory instrument by the Minister with the approval of Cabinet.