Revised Laws of Saint Lucia (2021)

12.   Exemption from income tax for an approved tourism product

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   (1)   Subject to this section, the income accruing from any approved tourism product is exempt where the construction of such approved tourism product or of any extensions to the approved tourism product started on or after the appointed date.

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   (2)   An exemption under subsection (1) shall not apply unless approval of such exemption is given by the Cabinet following an application in writing made to the Minister.

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   (3)   Where a licence has been given in respect of a new hotel or any other approved tourism product under section 9, the Cabinet shall determine the period of exemption from tax on income as provided in subsection (1), to a maximum of 15 years.

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   (3A)   Despite subsection 3, where a licence has been given in respect of an approved tourism product under section 9 before the commencement of this subsection, Cabinet may, on or before 31 December 2014, grant the exemption for a period, continuous or interrupted, that begins from the effective date at which the tourism product is so licensed and ends on or before 31 December 2028. (Inserted by Act 4 of 2013)

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   (4)   Where any approved tourism product ceases to be used for the purpose for which it was specified to be used at the time it was designated an approved tourism product, during the tax holiday period, the exemption provided by this section shall cease to apply from the date of cessation of such use.

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   (5)   Where any approved tourism product is sold during the tax holiday period but continues to be used for the purpose for which it was specified it was going to be used at the time it was designated an approved tourism product, the exemption provided by this section shall continue to apply to the new owner or the lessee, as the case may be, for the remainder of the period.

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   (6)   Where a licence has been given in respect of any extensions to an existing approved tourism product under section 9, the Cabinet shall determine the period of exemption from tax on income as provided in subsection (1), but not exceeding a maximum of 10 years, that is attributable to such extensions.

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   (6A)   Despite subsection 6, where a licence has been given in respect of any extensions to an approved tourism product under section 9 before the commencement of this subsection, Cabinet may, on or before 31 December 2014, grant the exemption on income that is attributable to such extensions, for a period, continuous or interrupted, that begins on the effective date that the extension is so licensed and ends on or before 31 December 2023. (Inserted by Act 4 of 2013)

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   (7)   Income attributable to an extension to an existing hotel under subsection (6) or (6A) is defined as the same proportion of the total income accruing from the hotel as the number of additional bedrooms the extension bears to the total number of bedrooms in the hotel. (Substituted by Act 4 of 2013)

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   (8)   Income attributable to an extension to an approved tourism product other than a hotel shall be determined by the Comptroller of Inland Revenue.

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   (9)   Where an approved tourism product is managed by or on behalf of a limited liability company, the company is entitled to distribute profits to shareholders or debenture holders as capital monies free of tax during the 2 year period following the end of the granted tax holiday period.

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   (10)   The appointed date for the purposes of subsection (1) shall be determined by the Minister by an order published in the Gazette.

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   (11)   For the avoidance of doubt, the grant of a tax exemption holiday under subsections (3A) and (6A) may be retrospective. (Inserted by Act 4 of 2013)