Income tax in St. Lucia
January 22, 2018
Residents must pay taxes on their worldwide income. Married couples are assessed and taxed separately.
Income is taxed at progressive rates.
|TAXABLE INCOME, ECD (US$)||MARGINAL TAX RATE|
|Up to 10,000 (US$3,704)||10%|
|10,000 - 20,000 (US$7,407)||15% on band over US$3,704|
|20,000 - 30,000 (US$11,111)||20% on band over US$7,407|
|Over 30,000 (US$11,111)||30% on all income over US$11,111|
| * Exchange Rate as of 15 June 2006: 1€ = YTL2.01.
Source: Global Property Guide
Residents are entitled to the following allowances and deductions which they could deduct from their gross income:
- Personal allowance: ECD16,000 (US$5,926)
- Spouse allowance: ECD1,500 (US$556), this is only available to legally married couples where the spouse earns less than ECD1,500 (US$556) for the income year
- Child allowance up to 16 years old: ECD1,000 (US$370)
- Child allowance for each child over 16 years old but still studying: ECD1,000 (US$370)
- Handicapped child: ECD1,000 (US$370)
- Secondary education allowance for the taxpayer’s children: maximum of ECD2,000 (US$741)
- Tertiary education allowance for the taxpayer’s children: maximum of ECD5,000 (US$1,852)
- Medical expenses
- Interest on student loans: maximum of ECD3,000 (US$1,111)
- National insurance, life assurance, and other retirement benefits: maximum of ECD8,000 (US$2,963)
- Premiums on annuities: maximum of ECD8,000 (US$2,963)
- Mortgage interest expense on owner-occupied property: maximum of ECD15,000 (US$5,556)
- Donations: maximum of 25% of the taxpayer’s assessable income
Rental income is included in the aggregate income and taxed at progressive rates. Income-generating expenses are deductible when computing for the taxable income.
Stamp Duty on Property Leases
Lease agreements are subject to stamp duty at progressive rates. Different rates apply on leases for less than twenty years and on leases for over twenty years.
STAMP DUTY ON LEASES FOR LESS THAN 20 YEARS
|ANNUAL RENT, ECD (US$)||TAX RATE|
|Up to 3,000 (US$1,111)||2%|
|3,000 – 6,000 (US$2,222)||4%|
|6,000 – 12,000 (US$4,444)||6%|
|Over 12,000 (US$4,444)||8%|
STAMP DUTY ON LEASES FOR OVER 20 YEARS
|ANNUAL RENT, ECD (US$)||TAX RATE|
|Up to 3,000 (US$1,111)||4%|
|3,000 – 6,000 (US$2,222)||6%|
|6,000 – 12,000 (US$4,444)||8%|
|Over 12,000 (US$4,444)||10%|
Capital gains are not taxed in St. Lucia.
Stamp Duty on Property Transfers
Sales of properties are subject to 0.25% stamp duty. The duty is levied on the market value of the property at the time of sale or the selling price.
Real Property Transfer Tax
Citizens who transfer real property are subject to real property transfer tax at progressive rates.
REAL PROPERTY TRANSFER TAX
|PROPERTY VALUE, ECD (US$)||TAX FEE|
|Up to 50,000 (US$18,519)||0%|
|50,000 – 75,000 (US$27,778)||2.50%|
|75,000 – 150,000 (US$55,556)||3.50%|
|Over 150,000 (US$55,556)||5%|
Foreigners who transfer real property are subject to a flat rate of 10% vendor´s tax.
Property owners are liable to pay land tax on their property. The tax base is the assessed rental value of the property, as determined by the Inland Revenue Department.
|SIZE OF THE PROPERTY||LAND TAX FEE|
|Up to 10 acres||0%|
|10 acres – 50 acres||ECD0.25 (US$0.09) per acre|
|50 acres – 100 acres||ECD0.50 (US$0.19) per acre|
|100 acres – 500 acres||ECD0.75 (US$0.28) per acre|
|Over 500 acres||ECD1.00 (US%0.37) per acre|
Residential property owners are required to pay property tax at 5% of the annual rental value, as determined by the Inland Revenue Department.
Income and capital gains earned by companies are subject to corporate income tax levied at a flat rate of 33.33%. Income-generating expenses are deductible when calculating taxable income.
A withholding tax of 25% is applied on companies owned by non-CARICOM nationals, and a withholding tax of 15% is applied on companies owned by CARICOM nationals. These withholding taxes can be credited against final income tax liability.