CHAPTER 15.02 INCOME TAX ACT - irdstlucia.gov.lc

1 SAINT LUCIA. CHAPTER INCOME TAX ACT. Revised Edition Showing the law as at 31 December 2008 . This is a revised edition of the law, prepared by the Law Revision Commissioner under the authority of the Revised Edition of the Laws Act. This edition contains a consolidation of the following laws . INCOME TAX ACT. Act 1 of 1989 in force: section 25(1)(j)(i): 1 June 1987. remainder: 1 January 1988. Amended by Act 18 of 1990 in force 26 January 1991. Amended by Act 7 of 1994 in force 25 September 1994. Amended by Act 8 of 1996 in force 25 September 1994. Amended by Act 24 of 1996 in force 9 May 1990. Amended by Act 11 of 1998 in force 2 May 1998. Amended by Act 12 of 1999 in force 27 March 1999. Amended by Act 9 of 2001 in force 23 June 2001. Amended by Act 14 of 2003 in force 22 April 20031. 1. Act 14 of 2003 applies in respect of INCOME year 2002. See section 2 and 3 of Act 14 of 2003. Amended by Act 15 of 2003 in force 22 April 20032. Amended by Act 7 of 2006 in force 6 February 2006.

2 Amended by Act 11 of 2007 in force 17 September 2007. Amended by 86/1995 in force 29 December 1995. Amended by 78/1990 in force 1 January 1988. Amended by 56/1996 in force 26 October 1996. Amended by 26/1997 in force 26 April 1997. Amended by 38/1997 in force 17 May 1997. Amended by 102/1997 in force 27 December 1997. Amended by 34/1999 in force 22 May 1999. Amended by 69/2000 in force 25 March 2000. Amended by 141/2000 in force 1 January 2000. Amended by 232/2000 in force 25 November 2000. Amended by 84/2001 in force 8 September 2001. Amended by 98/2001 in force 13 October 2001. Amended by 136/2001 in force 1 December 2001. Amended by 12/2003 in force 10 February 2003. Amended by 19/2003 in force 3 March 2003. Amended by 59/2003 in force 21 July 2003. Amended by 64/2003 in force 25 August 2003. Amended by 4/2004 in force 9 February 2004. Amended by 60/2004 in force 9 August 2004. Amended by 75/2004 in force 1 November 2004. Amended by 82/2004 in force 29 November 2004. Amended by 4/2007 in force 12 February 2007.

3 Amended by 40/2007 in force 8 June 2007. Amended by 172/2007 in force 29 October 2007. Amended by 100/ 2008 in force 3 November 2008 . INCOME TAX (EVASION OF TAX PAYMENT) (PREVENTION) RULES Section 151. Statutory Instrument 18/1971 in force 26 June 1971. Amended by 19/1977 in force 9 April 1977. Amended by 38/1993 in force 3 July 1993. Amended by 32/1998 in force 1 May 1998. INCOME TAX (EXEMPTIONS) PROCLAMATIONS Section 25. Statutory Instrument 5/1924 and 93/1941. 2. Amendments to Schedule 2 by Act 15 of 2003 takes effect in respect of INCOME year 2002. See section 5(2) of Act 15 of 2003. INCOME TAX (DOUBLE TAXATION RELIEF) (UNITED KINGDOM) ORDER Section 60. Statutory Instrument 33/1949 in force: Paragraph 6(3) of Schedule: 7 September 1968. Paragraphs 13(1) and 13(2) of Schedule: 1 January 1968. Remainder: 28 May 1949. Amended by 33/1951. Amended by 25/1968 in force 7 September 1968. INCOME TAX (DOUBLE TAXATION RELIEF) (CANADA) ORDER Section 60. Statutory Instrument 19/1953 in force 4 April 1953.

4 INCOME TAX (DOUBLE TAXATION RELIEF) (SWEDEN) ORDER Section 60. Statutory Instrument 50/1954 in force 31 December 1954. INCOME TAX (DOUBLE TAXATION RELIEF) (DENMARK) ORDER Section 60. Statutory Instrument appearing in volume 7, page 1106 of the 1957 Revision of the Laws of Saint Lucia INCOME TAX (DOUBLE TAXATION RELIEF) (NORWAY) ORDER Section 60. Statutory Instrument appearing in volume 7, page 1119 of the 1957 Revision of the Laws of Saint Lucia INCOME TAX (DOUBLE TAXATION RELIEF) ( ) ORDER Section 60. Statutory Instrument 42/1958 in force 27 December 1958. INCOME TAX (DOUBLE TAXATION RELIEF) (SWITZERLAND) ORDER Section 60. Statutory Instrument 16/1965 in force 28 August 1965. INCOME TAX FORMS RULES Section 151. Statutory Instrument 42/1949 in force 30 July 1949. INCOME TAX APPEALS AGAINST ASSESSMENTS RULES Section 151. Statutory Instrument 14/1924. Laws of Saint Lucia INCOME Tax Act 5. Revision Date: 31 Dec 2008 . CHAPTER INCOME TAX ACT. ARRANGEMENT OF SECTIONS. Section PART 1 11.

5 PRELIMINARY 11. 1. Short title and application .. 11. 2. Interpretation .. 11. PART 2 18. ADMINISTRATION 18. 3. Comptroller of Inland Revenue .. 18. 4. Delegation by 18. 5. Indemnity against liability for acts done .. 18. 6. Secrecy .. 18. PART 3 20. IMPOSITION OF INCOME TAX 20. Division 1 Charge to Tax .. 20. 7. Charge to tax: 20. 8. Scope of charge to tax .. 21. 9. INCOME accrued: meaning of .. 21. 10. INCOME deemed to have accrued from sources in Saint Lucia .. 22. 11. Basis of assessment .. 23. Division 2 Persons Chargeable to Tax .. 24. 12. Persons chargeable: general .. 25. 13. Married women .. 25. 14. Minor children: dispositions to .. 25. 15. Settlements and wills .. 25. 16. Revocable dispositions .. 26. 17. Deceased persons .. 27. 18. Estates of deceased persons .. 27. 19. Incapacitated persons .. 28. 20. Insolvent persons .. 28. 21. Partnerships .. 29. 22. Non-resident persons .. 29. 23. Transactions involving liability to tax .. 30. 6 INCOME Tax Act Laws of Saint Lucia Revision Date: 31 Dec 2008 .

6 24. Responsibility of representative taxpayers ..31. PART 4 31. EXEMPT INCOME 31. 25. Exemptions ..31. 26. Exemption: hotels ..38. 27. Exemption: INCOME from residential accommodation .. 38A. 28. Exemption: interest from housing mortgages ..38b 29. Exemption: interest paid on approved borrowings by mortgage companies ..39. 30. Comptroller may require Company to keep special account ..39. 31. Exemption: approved enterprises for fiscal incentive relief ..40. PART 5 40. ASCERTAINMENT OF ASSESSABLE INCOME 40. Division 1 Gains or Profits forming Assessable INCOME ..40. 32. Assessable INCOME : general ..40. 33. Business INCOME ..41. 34. Employment INCOME ..42. 35. Loans or advances by a controlled company to a shareholder, director or higher paid 36. Rental INCOME ..44. Division 2 Deductions allowable in ascertaining assessable INCOME ..45. 37. Deductions allowable : general ..45. 38. Deductions allowable : specific ..45. 39. Restrictions on deductions: management charges and certain payments by controlled companies to shareholder.

7 50. 40. Capital allowance .. 40B. 41. Deduction for losses ..51. 41A. Interpretation in respect of sections 41B to 41J ..52. 41B. Determination of subsidiary company ..53. 41C. Claim for group 41D. Companies joining group .. 54A. 41E. Relief obtainable once for the same amount .. 54A. 41F. Aggregate of claim .. 54B. 41G. Capital 54B. 41H. Tax recovery .. 54B. 41I. Exempt companies .. 54B. 41J. Profits and losses and distribution or charge on INCOME vis-a-vis group relief .. 54C. 41K. Exemption from stamp duty .. 54C. 42. Deductions not allowable under more than one 54C. 43. Expenditure for which no deduction allowable .. 54D. PART 6 54E. ASCERTAINMENT OF CHARGEABLE INCOME : DEDUCTIONS AND. ALLOWANCES 54E. 44. Concessional deductions: general .. 54E. 45. Personal allowance to individuals .. 54E. 46. Allowance for spouse .. 54E. 47. Deduction for maintenance or Laws of Saint Lucia INCOME Tax Act 7. Revision Date: 31 Dec 2008 . 48. Deduction for maintenance of children .. 55. 49. Deduction for education of certain children.

8 56. 50. Deduction for higher education .. 56. 51. Allowance for housekeeper .. 57. 52. Allowance for dependent relative .. 58. 53. Deduction for contributions to life assurance, or other retirement 58. 54. Deduction for mortgage interest, rates and insurance on owner occupied property .. 60. 55. Deduction for gifts for certain approved purposes .. 61. 56. Deduction for medical expenses .. 61. 57. Deductions for payments to co-operative or building society .. 63. 58. Deduction for interest on student loan .. 63. 59. Deductions for purchase of new shares in a Resident Public Company .. 64. PART 7 64. SPECIAL PROVISIONS RELATING TO CERTAIN TAXPAYERS 64. Division 1 Variation of Normal Bases of Taxation .. 64. 60. International agreement for the avoidance of double 64. 61. General insurance companies and associations of underwriters .. 65. 62. Life assurance companies .. 66. 63. Approved pension funds .. 67. 64. Deductions dependent on place where fund established .. 71. 65. Interpretation of this Part.

9 72. 66. Applications for registration .. 72. 67. Conditions subject to which registration may be granted .. 72. 68. Permitted provisions in annuity contracts .. 73. 69. Registration .. 74. 70. Change in annuity 74. 71. Withdrawal of 75. 72. Comptroller to be notified of payments under annuity contract and to be provided with returns .. 75. 73. Allowable deductions .. 75. 74. Deductions for payments to a RHOS plan .. 75. 75. Tax Credit in respect of Foreign Currency from INCOME Year 2001. onwards .. 76. Division 2 Withholding Tax on Payments to Non-Residents and Deduction of Tax by Employers, by Companies and from Payments to Contractors .. 77. 76. Deduction of tax from payments made to non-resident .. 77. 77. Deduction of tax by employers .. 78. 78. Deduction of tax from payments to contractors .. 78. 79. Indemnification for tax paid to Comptroller .. 79. PART 8 79. ASCERTAINMENT OF TAX PAYABLE 79. 80. Rates of tax .. 79. 81. Credit for tax deducted or paid .. 80. 82. Credit for tax paid outside Saint Lucia.

10 80. 83. Calculation of tax credit for foreign tax .. 81. 8 INCOME Tax Act Laws of Saint Lucia Revision Date: 31 Dec 2008 . PART 9 81. RETURNS AND NOTICES 81. 84. Returns of INCOME : general ..81. 85. Returns of INCOME : cessation of INCOME during any year of INCOME ..83. 86. Returns of INCOME : where no return furnished ..83. 87. Further return or information, production of books and giving of evidence to Comptroller ..83. 88. Examination of business records ..85. 89. Powers of entry ..86. 90. Maintenance of proper records of transactions, methods of accounting and preservation of books of account and records ..87. 91. Submission of accounts with return of INCOME and certificate relating to preparation of accounts ..88. 92. Principal officer of company ..89. 93. Precedent partner of partnership ..90. 94. Returns deemed to be furnished by due authority and in full knowledge of contents ..91. 95. Returns: method of furnishing ..91. 96. Returns: extensions of time for furnishing ..91.