(1) Where a—
(a) person makes payment to a non-resident; or
(b) branch of a non-resident company makes payments to its head office or to some other branch or associate outside Saint Lucia,
tax shall be deducted from such payments in accordance with and in the manner specified in Schedule 3 and the person or branch shall carry out such other obligations as are imposed by that Schedule. (Amended by Act 7 of 2006)
(2) For the purposes of this section, a person including a partnership, to whom any payment is made to which this section applies is presumed, unless the contrary is proved, to be a non-resident if such payment is made to an address outside Saint Lucia.
(3) This section does not prevent the Comptroller from directing the deduction of a lesser amount than that provided in Schedule 3 where he or she is satisfied that the person to whom the payment is made is a resident of a country with which an international agreement made under section 60 exists which provides for a lower rate of withholding tax than that provided in Schedule 3.
(4) This section and paragraph 1 of Schedule 3 shall not be construed so as to bring within the charge to withholding tax —
(a) payments of income that are exempt from tax under Part 4;
(b) payments made towards an expense incurred to generate income from a source outside Saint Lucia.
(Amended by Act 12 of 2018)