(758) 468-3200
Government Saint Lucia
 
 
 
Home
/
Departments
/
Legislative Drafting
/
Revised Laws of Saint Lucia
/
INCOME TAX ACT
/
38.   Deductions allowable : specific

Revised Laws of Saint Lucia (2021)

saint Lucia
back arrow Back to Revised Laws of Saint Lucia (2021)
back arrow Back to Table of Contents

38.   Deductions allowable : specific

  1.  

    (1)   Subject to this Division and without prejudice to section 37(2), save to the extent that any provision of this section imposes a restriction on a deduction otherwise allowable, the deductions allowable in ascertaining the assessable income of any person for any year of income shall include—

    1.  

      (a)     any allowances to which that person is entitled under section 40 and Schedule 2 in respect of capital expenditure;

    1.  

      (b)     any expenditure incurred by that person during the income year on the repair of premises, plant and machinery used by him or her in his or her business, or the replacement of any implement, utensil or similar article for which no allowance is given under Schedule 2;

    1.  

      (c)     any legal expenses incurred by that person for the income year in respect of any claim, dispute or action at law arising in the course, or by reason of, the ordinary operations undertaken by him or her in the carrying on of business;

    1.  

      (d)     any annually assessed rate or taxes imposed on any immovable property used by him or her for the purpose of producing assessable income;

    1.  

      (e)     any premiums incurred under a policy of insurance against damage to or loss of property—

      1.  

        (i)     where the property insured is used for the purpose of producing assessable income, and

      1.  

        (ii)     the policy is entered into with an insurance company which carries on business in Saint Lucia and is liable to include such premiums in its assessable income;

    1.  

      (f)     any premiums incurred under a policy of insurance against loss of profits, however—

      1.  

        (i)     such deduction shall not be allowed unless the policy is entered into with an insurance company which carries on business in Saint Lucia and is liable to include such premiums in its assessable income, and

      1.  

        (ii)     where any policy against loss of profits arises under a policy of insurance on the life of an employee, including a director, a deduction shall only be allowable where the Comptroller is satisfied that—

      1.  

        (A)     any sum recoverable will constitute assessable income under section 33;

      1.  

        (B)     the insurance is intended to meet a loss of profits arising from the loss of the employee's services;

      1.  

        (C)          if the policy of insurance is against the death or permanent disablement of the employee, it is a policy providing only for a sum to be paid in the event of the death or permanent disablement of the employee within a specified number of years and while in the employment of the employer;

    1.  

      (g)     the amount of any debts due to that person to the extent to which they are bad and provided they have been brought to account in the ascertainment of his or her assessable income for any year of income;

    1.  

      (h)     such amount as the Comptroller considers reasonable in respect of any debts due to that person which he or she considers to be doubtful of recovery and provided they have been brought to account in the ascertainment of his or her assessable income for any year of income;

    1.  

      (i)     any expenditure incurred during the year of income by way of interest on any loan made to that person, including interest payable on debentures, to the extent to which the Comptroller is satisfied that the amount of such loan was used by that person for the purpose of producing assessable income;

    1.  

      (j)     any amount contributed under the National Insurance Corporation Act by that person in respect of persons employed in his or her business;

    1.  

      (k)     any amount contributed by him or her in respect of his or her employees by way of current annual contributions to an approved pension fund;

    1.  

      (l)     such amount as is specified in subsection (2) in respect of any contribution made by way of special payment to an approved pension fund where such payment is made—

      1.  

        (i)     in relation to a period of service by an employee prior to the setting up of the approved pension fund, or

      1.  

        (ii)     to meet any actuarially ascertained insufficiency in the resources of the approved pension fund to meet its obligations to his or her employees;

    1.  

      (m)     any expenditure incurred by that person during the income year by way of audit fees, accountancy fees or in respect of the preparation of a return of income for the purposes of this Act or the previous Act;

    1.  

      (n)     any expenditure incurred by that person during the income year by way of subscription or donation to a professional association approved by the Comptroller where he or she is satisfied that such body of persons is a non-profit body established with the object of maintaining and advancing the standards of such profession;

    1.  

      (o)     an additional amount of 25% of the total salary paid during the income year to each graduate employed, for a maximum period of 3 years;

    1.  

      (p)     all expenditure incurred as a result of incorporation costs for the establishment of a new small scale business enterprise;

    1.  

      (q)     from income year 2001 up to and including income year 2003, expenses reasonably incurred by that person during the income year in the purchasing and installation of a new solar water heating system up to a limit of $6,500;

    1.  

      (r)     from income year 2004, an allowance equal to 150% of the actual expenditure incurred by a company which –

      1.  

        (i)      promotes or sponsors a local or regional sporting activity or event, sportsperson or team in respect of such promotion or sponsorship up to a maximum of $75,000; or

      1.  

        (ii)      build, construct rehabilitate, or repair a sporting facility up to a maximum of $250,000;

    1.  

      (s)     from income year 2005, an additional amount of 25% of the total salary paid during the income year to each graduate of the National Skills Development Centre employed with an employer who is certified by the National Skills Development Centre, for a maximum period of 3 years;

    1.  

      (t)     from income year 2005, up to and including income year 2007, expenses incurred by that person during the income year in the purchasing and installation of a new solar water heating system up to a limit of $6,500; (Amended by Act 8 of 2021)

    1.  

      (u)     a fifty per cent deduction of income tax on interest income earned by a financial institution and an institution in the money services business involved in lending to micro, small and medium sized-enterprises for the income years 2020, 2021, and 2022, (Inserted by Act 8 of 2021)

  1.  

    (2)   For the purpose of subsection (1)(p), the expenditure allowed shall be fixed by the Minister in a notice to be published in the Gazette.

  1.  

    (3)   Where a special payment is made to an approved pension fund to which subsection (1) applies such amount shall be allowed as follows—

    1.  

      (a)     where the special payment does not exceed the current annual contribution it is to be wholly allowed for the year of income for which payment is made;

    1.  

      (b)     where the special payment exceeds the current annual contribution, it is to be allowed in such years of income, not exceeding 5 in number, as in the opinion of the Comptroller is reasonable in the circumstances;

    1.  

      (c)     where under paragraph (b) annual deductions are allowable over a number of years of income the first such deduction is allowable for the year of income for which the special payment is made.

  1.  

    (4)   For the purposes of –

    1.  

      (a)      subsection (l)(r) the deduction shall—

      1.  

        (i)      apply to a sportsperson who belongs to a club recognized by the Minister responsible for sports,

      1.  

        (ii)      apply to a local team which is affiliated to a national association or belongs to a club recognized by the Minister responsible for sports, and

      1.  

        (iii) not be granted for the sponsorship of clubs established by corporate bodies;

    1.  

      (b)      paragraph (a) and subsection (l)(r)—

“club” means a formal structure—

(i)      with a document which clearly sets out the rules, regulations, accepted patterns of behaviour of its members and the role of each member,

(ii)      which follows a program over a sustained period of time,

(iii)      which exists not only for the fulfillment of programmed activities but also for the social development of its membership,

(iv)      which shares similar social objectives with other clubs on a regional level, and

(v)      which demonstrates both formal and informal relationships;

“national association” means a nationally, regionally or internationally recognized grouping of clubs or organizations with similar interests;

“sponsor” means one who provides funds or equipment for a broadcast, sporting activity or event;

“sporting activities or events” means athletics, basketball, bridge, amateur boxing, martial arts, cricket, squash, woule-la-ba, hockey, cycling, darts, dominoes, football, rugby, golf, netball, swimming, tennis, body building, yachting and such other activities or events as determined by the Minister responsible for sports, after consultations with the Minister by order published in the Gazette;

“sporting facility” means playing field, playing court, pavilion and any other amenity to serve such facility;

“sportsperson” means an individual engaged in sporting activities or events;

“team” means an informal unit, with a captain, vice captain and coach, to manage its activities, which comes together usually on a seasonal basis, for the purpose of fulfilling a particular objective or a set of objectives.

(Amended by Act 11 of 1998, 9 of 2001 and 7 of 2006)

Address

2nd Floor Francis Compton Building, 
Waterfront,
Castries, Saint Lucia

Need help?

Site Map

HomeAbout AG OfficeDepartmentsAccessibilityContact Us

Quick Links

Inland Revenue Department of Government of Saint Lucia (IRD)Government of Saint Lucia Citizenship by Investment Financial Intelligence Authority

Important Links

CARICOMOECSFSRA
 
© 2024 Attorney General's Chambers
Site by