Corporate tax is levied on all income received by a corporation from sources in and out of St. Lucia. The due date for submission of income tax returns for Corporations is three months after the end of their financial year.
The residence of a company for tax purposes is determined by the country in which it is managed and controlled. Corporation tax is chargeable on all the profits of a resident company. Profits that accrue directly or indirectly to a non-resident company carrying on a business through a permanent establishment in St. Lucia are subject to corporation tax at 33.3%. Where income accrues to a non-resident company from a source other than from the carrying on of business through a permanent establishment in St. Lucia, the gross amount of such income is liable to withholding tax at 25%.
All companies are required to pay to the Department on or before March 25, June 25 and September 25 respectively, in each income year, an amount equal to one third (1/3) of the estimated tax for the year. The “estimated tax” is based on the income of the previous year and, more specifically, is calculated according to Schedule 5, Rate of Tax of the Income Tax Act which is as follows:
2. On the chargeable income, on every dollar thereof, of –
(a) companies existing before the commencement of this Act -
(iv) for income year 2003-33%
(v) for income year 2004 – 32%
(vi) for income year 2005 and subsequent income years – 30%
(aa) The rates specified in items (iv), (v) and (vi) are applicable to companies who prior to income year 2003 –
(i) have no arrears of income or any other tax administered by the Inland Revenue Department; and
(ii) have complied with the requirements of any enactment administered by the Inland Revenue department.
Note: If you fail to qualify in 2 (a) iv, v and vi, your tax rate will be thirty-three and a third percent (33.33%).
The remainder of tax as estimated by the company must be paid by March 31 of the following year. In the case of a company whose financial year does not commence in the month of January this outstanding amount must be paid within three months of the end of its financial year.
Any balance of tax which remains unpaid will result in the imposition of a late-payment penalty of ten percent (10%). Interest of twelve and a half percent (12.5%) per annum will also accrue on the outstanding balance.