Taxation and Fiscal Incentives
Changes are made to St. Lucian tax law each year and the incentives are generous in order to facilitate serious investment which will result in overall economic growth while improving the socioeconomic well being of the residents of St. Lucia. The tax system described are general, however, you are encouraged to contact the members of the business community for up-to-date figures.
1.0 Business Tax Overview
Corporate Income Tax:
St. Lucian companies ordinarily resident (both public and private) pay tax at a flat rate of 33.3% on income accruing in St. Lucia or elsewhere, whether received in St. Lucia or not.
Income Tax - International Financial Services:
Companies licensed under the Registered Agent and Trustee Licensing Act pay a blanket rate between 50 - 100 percent on all profits.
Stamp duty is payable on the conveyance, transfer or sale of any immovable property. The purchaser pays 2 percent ad valorem and the vendor pays between 2.5 - 10 percent ad valorem, which is based on whether the individual or the entity is a citizen of St. Lucia, a registered company, or not.
A combined hotel occupancy tax of 18% which accounts for accommodation and service charge.
Import and Excise Duty:
This amount ranges from 0 - 100%
Personal Income Tax:
This amount ranges between 10 - 30% of taxable income.
2.0 Fiscal Incentives
These are available to various categories and types of enterprises planning to invest, particularly in the tourism and manufacturing sectors. Incentives offered to an industrial investor may vary according to the value of the enterprises contribution to the local and regional economy; usually measured in terms of local value added. Whereas, an investor in the tourism sector is not subject to similar local value added requirements. Some of the incentives offered by the government, under three legislative Acts include:
- Tax Holiday up to a maximum of fifteen years.
- Exemptions from Income Tax, applicable to tourism investment operations.
- Waiver of Import Duty and Consumption Tax on imported plant, machinery and equipment, raw and packing materials from outside CARICOM.
- Tax relief on export earnings
- Unrestricted repatriation of all Profits and Capital
- Lower corporate taxes for investors in special development areas