In Saint Lucia, personal income taxation is imposed on the following three classes of individuals:
- Individuals that are residents (and ordinarily residents) in Saint Lucia – they are taxed on their worldwide income, regardless of the income source that has been earned. In other words, even if the income has been sourced from abroad, it will be taxed under the personal income tax regime.
- Individuals that are residents, but not ordinarily residents in Saint Lucia – this class of individuals is only supposed to pay taxes on the income that is generated from within Saint Lucia. The income that has been earned outside of Saint Lucia is only supposed to be taxed if it is remitted in Saint Lucia. If no income has been remitted inside Saint Lucia, only the income earned from Saint Lucia is supposed to be used for tax computation.
- Non-residents of Saint Lucia – For non-residents too, only income that is sourced in Saint Lucia is used for tax computation purposes.
Personal Income Tax Rates in Saint Lucia
The following tax rates are applicable on various different income sources in Saint Lucia, as mentioned below:
- For an income between 0 XCD and 10,000 XCD: A tax of XCD 0 is applied. A further 10% rate is applicable on the excess.
- For an income between 10,000 XCD and 20,000 XCD: A tax of XCD 1000 is applied. A further 15% rate is applicable on the excess.
- For an income between 20,000 XCD and 30,000 XCD: A tax of XCD 2500 is applied. A further 20% rate is applicable on the excess.
- For an income over and above 30,000 XCD: A tax of XCD 4500 is applied. A 30% rate is applicable on the excess.
Other Personal Taxation in Saint Lucia
Other than Personal Income Tax Rates mentioned above, there are a couple of other personal tax rates that are applied in Saint Lucia. They are given below:
- Social Security Contributions: The personal contributions towards social security program amounts to 5% of the gross salary of the individual. However, it is capped at a maximum contribution of XCD 250 per month.
- Value Added Tax (VAT): Consumption tax is also applied in the form of Value Added Tax (VAT). The standard applicable VAT rate is 12.5%. However, there is a 0% rate that is applied on certain goods and services (primarily necessities). There is also a reduced rate that is applicable on certain sectors like hospitality and hoteling. The applicable reduced rate for these selected sectors is 10%.
- Residential Property Tax: Residential property tax is also levied at a rate of 0.25% on the existing market value of the residential property.
- Excise Taxes: Excise Taxes are also applied to four main categories of goods and services. They include petroleum (fuel), alcohol, beer and tobacco products (mainly cigarettes). The excise tax on these category is levied at a fixed rate. However, it must be noted that the excise tax is only levied in the case where the fuel is imported into Saint Lucia.
- Stamp Taxes: Stamp Taxes are imposed in Saint Lucia at rates varying from 2% to 10%. The rate depends on the type of legal document that is being prepared.
Corporate Income Taxation in Saint Lucia
For corporate income taxation, the rates and application differs contingent on the residency status of the given corporation.
As far as resident companies are concerned, it can be seen that they are mainly taxed on their profits that have been sourced either directly, or indirectly within Saint Lucia. The income is taxed at a flat rate of 30%. However, the rate of 30% applies to companies that do not have any tax arrears. In the case where companies have tax arrears, in that case they are taxed at a rate of 33.33%. For resident companies, they are supposed to be taxed on their worldwide income. However, after the new territorial system has been in place, it can be seen that resident companies have an option to not pay taxes on income that is sourced from outside Saint Lucia.
On the other hand, as far as non-resident companies are concerned, they are only taxed on the income that has been sourced from within Saint Lucia. The gross income is levied a Withholding Tax (WHT) at a rate of 25%. However, 15% WHT tax is applied on interest income that is earned from within Saint Lucia.
Associations of underwriters are also taxed at rates of 30%. In the same manner. Life insurance companies are also taxed at a rate of 30% on the gross investment income that is earned within Saint Lucia.
Other Corporate Taxation in Saint Lucia
Other than corporate income tax rates as mentioned earlier, it can be seen that there are a couple of other corporate taxes that are levied. These taxes are given below:
- Custom Duties: Saint Lucia has imposed a number of custom duties on imported goods and services. However, there are certain exemptions that are offered for raw materials and plant/machinery that is supposed to be used in manufacturing within Saint Lucia.
- Commercial Property Tax: Commercial Property Taxes are calculated at 0.4% of the existing market value of the said property.
- Social Security Contributions: Social Security Contributions on the part of the employer also amount to 5% of the gross salary. This is supposed to be evenly matched by both, the employer, as well as the employee.
- Tourism Taxes: There is an additional surcharge that is imposed on guests that stay at registered hotels. They are supposed to bear a charge of USD 3 per night if the room charge is below USD 120. Alternatively, they are supposed to bear a tax levy of USD 6 per night, if the room charge exceeds USD 120. Additionally, a rate of 50% in lieu of tourism levy is also applied on guests that are aged between 12 and 17 years.