Welcome to the new PAYE Calculator reflecting the change in the Personal Income Tax Regime.
|1. Enter your Monthly, Fortnightly or Weekly Gross Pay/Salary|
|2. Tick the "For Year 2023?" box|
|3. Enter your Tax Code|
|4. Tick the "NIC" box if any is deducted|
|5. Click "Calculate"|
|6. You can also customize your calculations with the other options available|
To determine the amount of tax to be deducted from a salary:
|1. Enter your Monthly, Fortnightly or Weekly Gross Pay/Salary|
|2. Enter your Tax Code|
|3. Tick the "NIC" box if it is deducted|
|4. Click "Calculate"|
|5. You can also customize with the other options available|
MARCH 31, 2024 | 11:59PM 189 Days
Make a note of these important, upcoming tax dates below.
(As a rule, should a due date fall on a weekend or holiday, the due date falls on the next available business day)
Select a tab of frequently asked questions according to the category they fall in to get an immediate response to your inquiry
Who must file Income Tax Returns?
- Every resident individual who is in receipt of income of over $18,400 in any year;
- All self-employed individuals, notwithstanding the amount of the income or loss. Individuals in this case include taxi and mini-bus owners or drivers, doctors, mechanics, shopkeepers, vendors, lawyers, hairdressers, shop-owners, contractors, etc.;
- Every corporation, whether or not a profit is made;
- Corporations and Individuals to whom exemption of Tax has been granted under the Fiscal Incentive Act or otherwise;
If an individual has failed to submit Income Tax Returns for several years, what is his or her obligation in respect of those missing years?
Any person liable to furnish a return of income, in respect of any year of income, who fails, neglects or Inland Revenue Department requires that returns be submitted for the last six years.
Should an income tax return still be submitted if, in any year of income, a small business or a company suffers a loss?
Yes. An income tax return should be filed by a small business or a company whether or not the net result is a loss. A financial statement including Income Tax Computation showing details of the loss must be attached to the return and the actual loss shown on the return in brackets. A loss arises when the allowable business expenses exceed the income earned.
What are the requirements for registration?
A completed and signed registration form should be submitted along with any of the following forms of identification:
Passport, Drivers Licence, National ID, NIC card.
In addition to the completed registration form and a valid ID as indicated above, a self-employed individual is required to submit a certification of registration for their business.
The registration for the partnership signed a partner must be submitted along with:
- Certificate of registration for the partnership;
- NIC number for each partner.
The completed registration form signed by a director or the company secretary must accompany:
- the certificate of incorporation;
- a list of employees with their NIC numbers and the date of employment with the company.
Where should I register?
Taxpayers may register at any of our locations
What is a Tax Account Number (TAN)?
A Tax Account number is a unique eight-digit identification number assigned to an individual taxpayer, a business enterprise, a company (partnership) by way of an automated system. A Taxpayer will require this number when transacting business with either of the revenue collecting departments.
Why the TAN?
The Inland Revenue uses a fully computerised tax system called the Standardised Integrated Government Tax Administration System (SIGTAS). SIGTAS is a fully-networked system running on a modern database. The computerization of operations with the department helped improve the tax administration and ultimately provide better services to the public.
Under the TAN system, all taxpayers have a unique identification number which must be used when transacting business with the Inland Revenue Department, as well as the Customs Department.
The TAN will:
- Create and maintain accurate files for taxpayers;
- Eliminate the duplication of information on taxpayers within the department.
Who needs a TAN?
ALL TAXPAYERS doing business with the Revenue Departments need a Tax Account Number (TAN).
Taxpayers (Individuals, Partnerships and Companies) are required to register and receive a TAN by completing the relevant registration forms.
A taxpayer discovers that he has been given two Tax Account Numbers (TAN). What must he do?
The taxpayer should come in to the Tax Intelligence of the Inland Revenue Department with his St. Lucian identification card or NIC card and notify an officer of the Section. He will then be told which is his correct number and this number should be the one used at all times.
When a taxpayer changes his or her name and/or address, how is Inland Revenue notified?
The taxpayer should write or call the Tax Intelligence of Inland Revenue Department to notify the Section of the change.
What are some factors which delay the normal processing of a return?
The most frequent ones are Income Tax Returns without:
- Tax Account Numbers
- Complete or correctly filled information
- Certificates of remuneration and PAYE deductions
- The relevant supporting documents, as indicated in the instructions accompanying the Income Tax Return form
I am self-employed and was not aware that I had to submit yearly returns. On applying for a letter of exemption Re: 10% Contract Tax, I was told that I had to file my income tax returns for the last six (6) years. Is this correct?
It certainly is. Every self-employed person, whether or not he or she has made a profit, must file an income tax return every year. It should be noted that self-employed persons must pay their taxes yearly, in advance on a quarterly basis and the balance of tax estimated by him should be paid by March 31 of the following year. The dates of payment are March 25, June 25 and September 25.
My business operations ceased during the year. Am I still obligated to file an Income Tax Return Form?
Yes. Section 73 (b) of the Income Tax Act of 1989 requires that a person who ceases to carry a business during any year should file an Income Tax Return Form for the period of time in which the business was in operation prior to its closure.
I am leaving St. Lucia in September to pursue studies; should an Income Tax Return Form be filed for the period that I was employed?
Yes. An Income Tax Return Form should be submitted to the Department. However, if income is being received while you are away at school, returns should be filed by March 31, of the following year.
I understand that there is a 5% late filing penalty but I am unable to meet the filing deadline. What can I do to avoid this penalty?
You may apply to the Comptroller in writing, requesting an extension of time stating the reasons and the required extended date. It must be noted however, that an extension of time must be requested prior to the due date. The Department would appreciate that requests for extensions be filed at least one month in advance of the due date.
How is tax deducted from an employee's earnings?
An Employee Declaration Form (TD Form) AU-1 must be filed with Inland Revenue Department within fourteen days (14) after the commencement of employment. The employer will use the tax deduction tables prepared by the Department, to determine how much tax should be deducted at each pay period based on the employee's Tax Code.
An employee feels that too much PAYE is being deducted from his salary, can he arrange with his employer to payless?
No. If the employee has a Code Number and the amount to be deducted is in accordance with the Tax Tables, the employer has no authority to enter into any arrangement with the employee for a lower deduction.
If any employer deducts more tax than should be paid by the employee at any pay period, can be regularise this by deducting less from the employee at the next pay period?
No. The employer has no authority to deduct less PAYE from the emolument of an employee, even if asked to do so by the employee. The employer must deduct the amount arrived at by using the information on the Code Form and the Tax Deduction Tables. Should the employer deduct less tax he shall be liable to a penalty which will be inclusive of interest.
An overpayment of PAYE by an employee would be refunded when the Income Tax Return for that income year is filed and processed.
My husband is unemployed. Can I claim an allowance for him?
As of 1988, working wives can claim the allowance for their non-working husbands. The allowance which can be claimed is a maximum of $1,500 per annum.
I had a baby in December. Can I still claim for the child?
The law provides that an allowance of $1,000 can be claimed for any child born during the income year.
I maintain my niece who is eighteen (18) years of age and who is unemployed. Can I claim for her as my dependent relative?
No. The requirements for this allowance are that the dependent relative be incapacitated by old age or infirmity and unemployable by reason of old age and must be the child, brother or sister or whether incapacitated or not is your parent, aunt, uncle who is unmarried, divorced, widowed or separated.
My daughter Kim is 10 years old and attends the La Croix Combined School. Do I still claim the $1,000?
No. An allowance of $2,000 can be claimed for any child who has attained the age of 10 years and was a student whether in St. Lucia or elsewhere during the income year.
My relative attends St. Mary's University in Canada. What can I claim for him?
A deduction of $5,000 is allowable provided that the individual, irrespective of age, was receiving full time tuition at a University whether in St. Lucia or elsewhere during the income year. This also includes an institution which provides technical or professional education equivalent to a University standard, for example, A Polytechnic or the University Division of the Sir Arthur Lewis Community College. It must be noted that proof that your relative has attended the University and was supported by you is required by the Department.
NB: Students who are pursuing Advanced Level or Technical Studies at the Sir Arthur Lewis Community College are not entitled to the deduction of $5,000.
Some Associate Degree Programmes do qualify for Higher Education Allowance of $5,000. They are as follows:
- Social Sciences and Natural Sciences
- Arts & Science
- Arts, Science and Applied Science
- Computer Science
- Mass Communications
- Business Studies
Can my brother who is employed be classified as a Dependent Relative?
No. The Tax Law recognised a Dependent Relative as "individual who whether incapacitated or not, is the parent, aunt or uncle who is either unmarried, divorced, widowed or separated or is incapacitated by old age or infirmity or is employable by reason of old age and is the brother, sister, child of the taxpayer of his or her spouse.
I have been living with my girlfriend, for over five years, I consider her to be my common law wife. Can I claim for her as a Spouse or Housekeeper?
No. You are not entitled to either of these deductions. Spouse Allowance in only available where parties are legally married, and not in respect of a common law relationship. Housekeeper Allowance can be claimed only in cases where the taxpayer is a widow or widower or is unmarried, divorced or separated and maintains a relative who resides with the taxpayer for the purpose of having the charge and care of the child of children.
Last year I had an operation which cost over $5,000. Is the entire amount claimable as a medical expense or do I limit the amount to $400?
The entire amount is allowable if no part of it was reimbursed. However, if the Insurance Company reimbursed part of the total, then the reimbursed amount will be deducted from the total amount of the bills and the balance will be allowed as a deduction.
Only medical claims from registered practitioners will be acknowledged
I have three insurance policies for my children and myself, which amount to $4,000 yearly. Do I claim the entire amount paid as a deduction?
The Tax Act grants a relief for premiums for insurance on your life or that of your spouse or child or other dependents. It must be noted however, that the amount of insurance allowable shall not exceed the lower of (a) one tenth of your assessable income less NIS contributions or (b) $8,000.
I have an insurance policy which I took in 1976 with an overseas based Insurance Company. Can I claim as a deduction the premiums that I paid to the company?
Yes. Premiums paid to a company in respect of a policy in effect after 1972, with a company not doing business in St. Lucia are allowable as a deduction. The amount allowable however is 50% of the premium paid to the company. The deduction is limited to the higher of:
- One twentieth of your assessable income or
I pay the mortgage interest, house insurance premiums, house tax and maintenance expenses on my parent's house. Am I entitled to claim for these as deductions?
The Tax Law grants relief to a taxpayer who has taken a loan to acquire a dwelling house which is occupied by himself either alone, or together with his family, or occupied rent free by members of his family. This relief is also in respect of any rates, taxes, insurance premiums and expenses reasonably incurred in the upkeep and maintenance of the house.
In circumstances where for economic or the reasons you have taken over the mortgage on your parent's house the Department will allow you to claim the expenses on sufficient proof that your parent's house is your principal place of residence.
Interest on a loan for the acquisition or construction of or improvements to an owner occupied dwelling house is allowable up to a maximum of $15,000. The interest claimed must be substantiated by a statement from the lending institution indicating the purpose of the loan and interest paid during the income year.
I pay subscriptions for shares with the St. Lucia Civil Service Credit Union. Can I claim for this?
Yes. Relief is granted up to a maximum of $3,600 to an individual who makes payments by way of subscriptions to a society registered under the Co-operatives Societies Act. Therefore, shares taken with registered Credit Unions are allowable and a statement indicating the shares contributed must be attached. However, there are specific provisions in the Income Tax Act which apply with respect to the disposal of these shares.
In an effort to secure funds to build my home, a Savings Plan was started with Bank of Saint Lucia. Can I claim this amount as a deduction?
Yes. You are entitled to a deduction not exceeding six thousand dollars $6,000 for payments made under a Registered Home Ownership Savings Plan.
This deduction can only be claimed by a resident individual who has not previously owned a home in St. Lucia.
In 1999, I took a loan to pursue a degree programme at the University of the West Indies. Is this an allowable deduction?
Yes. A resident individual is entitled to deduction of a maximum of three thousand dollars ($3,000) in respect of any amount paid during the year of income by way of interest on money borrowed to finance his/her tertiary education.
I invested in the purchase of a solar water heater during 2001. Can I claim the expenses which I incurred?
Yes. An individual may claim expenses amounting to six thousand, five hundred dollars ($6,500) for the purchase and installation of a new solar water heater system.
This deduction would only be allowed for income years 2001 to 2005, and 2007.
I took advantage of the offer made by the Bank of St. Lucia and purchased shares. Can I claim for this?
Yes. A deduction shall be allowed to a resident individual who purchases newly issued shares in a resident public company. This deduction is limited to five thousand dollars ($5,000).
I have a medical policy I paid premiums totalling $900 for the year. Can I claim the total premiums as a deduction for medical expense of is it limited to the maximum allowed without bills, which is $400?
Yes. The total premiums paid for the year under a Medical Insurance is allowed as a deduction.
I paid premiums for the year of $750 towards a Medical policy, however, during the year I paid medical bills of $1,500 and was only reimbursed $500. Am I still entitled to a deduction and if so how much?
Yes. You are entitled to the difference of the total medical bills paid and the reimbursed amount. This difference will then be added to your total premium paid for the year.
In the example given, the calculation will be as follows:
- Total medical premiums paid $ 750
- Total medical bills paid $1,500
- Total reimbursed (500)
- Amount not reimbursed 1,000
- Amount allowed as a deduction $1,750
I make contributions annually to the World Wide Church of God can I claim for this as a donation?
No. This claim will only be allowed if the contribution is made under a deed of covenant for a period not less than three years.
It must be noted that the amount allowable is restricted to twenty-five percent (25%) of your assessable income for the year in question.
What are some of the business expenses which can be claimed by the self-employed?
Claims can be made against the total income for expenses which were wholly and exclusively incurred in the production of such income. Some of these claims are follows:
- Salaries & Wages
- Rates & Taxes applicable to the business
- Bad Debts
- Motor Vehicle operating expenses applicable to the business
- Utilities & Telephone
- Rent on business property
- Employers contribution to Social Security
- Bank Interest & Charges
- Legal & Professional Fees
It should be noted that where the expenses relate to both private and business use the amount should be apportioned accordingly.
Is there a specified period of time in which the books and records of a business must be maintained?
The Income Tax Act of 1989 requires that all books of account and other records of a business be preserved for a period of six years after the end of the year of income to which these books of records relate. In certain circumstances the Comptroller may approve the disposal of such books/records prior to the six year period.
Is Agricultural income exempt?
Yes. Income earned by an individual from fishing or agriculture is exempt. This includes horticulture, the use of land for husbandry including the keeping of livestock or poultry or the growing of crops, fruits or vegetables.
It must be noted that losses from exempt income cannot be set off against any other source of income or activity.
How is Wear & Tear (Capital Cost Allowance) granted on fixtures and equipment used in business?
There are set rates specified by the Income Tax Act. By these claims for Wear & Tear the cost of the asset for use in the business is written off (using the reducing balance method) over a period of time. The basic rates are as follows:
- Motor Vehicles 25%
Office Equipment 15%
Suppose a motor vehicle was purchased for $10,000. The calculation of allowances in the year of acquisition is as follows:
Cost of Vehicle
Initial Allowance - 20%
Annual Allowance - 25%
Written Down Value
Subsequent annual allowances are calculated on the written down value.
You are entitled to claim an initial allowance in the year of acquisition.
A list of all assets and applicables can be obtained from the Inland Revenue Department upon request.
I am provided with a vehicle by my company for my exclusive use on the job. Is this considered as a benefit? If so, how is this calculated?
Yes. This is considered to be a taxable benefit and the amount must be included as part of your employment income. The benefit is calculated as follows:
» In the case where the vehicle is purchased locally:
15% of the listed selling price of the vehicle Imported into the country directly or indirectly by your employer.
» 15% of the landed cost of motor vehicle plus all local charges i.e. 15% (landed costs + local charges)
Should the vehicle be leased, the benefit is calculated as:
» 40% of the leased cost to the employer.
What are concessional deductions?
- Personal Allowance - 18,000
- Spouse Allowance - 1,500
- Child under 10 years - 1,000
- Child Education (student over ten years) - 2,000
- Higher Education Deduction - 5,000
- Housekeeper - 200
- Dependent Relative - 350
- Medical Expenses - 400 (minimum)
- Life Insurance plus NIC - should be the lower of 1/10 of assessable income or $8,000.00
- Mortgage Interest - 18,000 (maximum)
- Deed of Covenant (Religious, Charitable, Medical, Educational } - 25% of assessable income (maximum)
- Credit Union/Co-operative Shares - 5,000 (maximum)
- Student Loan Interest - 3,000 (maximum)
- Registered Home Ownership Savings Plan - 6,000 (maximum)
- Hobby Farming as per certificate from Ministry of Agriculture - 1,000, 2,500 & 5,000
- Shares in a Public Company - 5,000 (maximum)
- Travel Allowance with accompanying form- 6,000 (maximum)
What are the Income Tax Rates?
On the Chargeable Income of every individual, unincorporated body of persons or trustee:
- From $0 - up to $10,000 10%
- From $10,001 - up to $20,000: 15% plus $1,000
- From $20,001 - up to $30,000: 20% plus $2,500
- From $30,001 - over $30,000: 30% plus $3,500
On the Chargeable Income, on every dollar thereof, of:
- Companies 33 1/3%
- New small business enterprises:
- for the first income year 25%
- for the second income year 30%
- for the third and subsequent years 33 1/3%
*From Income Year 2001 – 2005: 10%
What are the penalties for infringement of the Tax Laws?
Failure to file an Income Tax Return:
- The Inland Revenue Department shall impose a penalty not exceeding 5 percent (5%) of tax charged where a taxpayer does not file an Income Tax Return within the prescribed time or any extended time granted. [Section 120]
Failure to produce Books & Records:
- If the Inland Revenue Department requests a taxpayer to produce books and records and he does not comply, a penalty not exceeding five hundred dollars shall be imposed, he can, on summary conviction, be fined one thousand dollars ($1,000) and can be imprisoned for one year. [Section 124/128]
False statements, Declarations or Records:
- Any person who knowingly gives false information to the Inland Revenue Department or who wilfully seeks to evade assessment or liability to tax is guilty of an offence, and can, on summary conviction be fined two thousand dollars ($2,000) or imprisoned for two years. [Section 129]
Failure to Deduct Tax:
- Inland Revenue shall impose a penalty of ten percent of the tax which should bee deducted, where a taxpayer fails to deduct or account for tax which should have been deducted. This is in addition to any interest charges which have accrued. [Section 122]
Failure to Deduct Withholding Tax & Tax from Payments to Contractors:
- Any person who fails to deduct withholding tax or tax from a payment to a contractor is guilty of an offence and can on summary conviction, be fined one thousand dollars ($1,000) or imprisonment for one year. [Section 130]
Failure to Furnish Correct Return of Income:
- Where any person fails to furnish a correct return of income for any year of income by reason of:
- his failure to disclose any assessable income accrued to him from any source;
- the deduction or set off by him of any amount which is not allowable as a deduction or set off;
- the claim by him of an expenditure or loss of an amount which was not expended or lost; or
- his failure to disclose any fact, the disclosure of which would result in an increase in his ability to tax,
- he shall be liable to a penalty in accordance with the following paragraphs.
- Where the incorrectness of the return of income or the information was attributable to:
- neglect or carelessness, he shall be liable to a penalty not exceeding the amount of tax which would have been lost if he had been assessed on the basis of the incorrect return or information furnished by him; or
- fraud or wilful default, he shall be liable to a penalty not exceeding twice the amount of tax which would have been lost if he had been assessed on the basis of the incorrect return or information furnished by him.
- If, for any year of income, determination of chargeable income of any person results in as assessed loss, and the amount of such a loss is less than it would have been if it had been calculated on the basis of the return of income or information furnished by him by reason of any of the circumstances specified in subsection (1) and such incorrectness of the specified in information was due to neglect, carelessness, fraud or wilful default, he shall be liable to a penalty not exceeding ten percent of the difference between those amounts. [Section 120]
Failure to Pay Tax by Due Date:
- Inland Revenue shall impose a penalty of ten percent (10%) of the tax which is due, where a taxpayer fails to pay the whole or part of an instalment of tax which is due, or the balance of any tax to which he is liable. This is in addition to any interest charges which have accrued. [Section 122]
Failure to comply with notice to give information, produce documents or give evidence to the Comptroller:
Any persons who fail to comply within a specified period of time with a notice issued by the Inland Revenue Department to produce books of accounts, or documents, furnish returns or information on behalf of himself or any other person shall be liable to a penalty not exceeding five hundred dollars ($500.00). [Section 124]
Who must pay tax?
Every person paying emoluments, whether on his own account or on behalf of any other person herein referred to as an employer, must take deductions from such payments.
What is subject to tax deduction?
Pay is the employee’s earnings for the pay period, including the value of free board and lodging or any other perquisite including house allowance and entertainment, bonus, commission, overtime, director’s fee or any other benefits including any taxes paid by the employer on the employee’s behalf or allowances LESS any sum deducted by the employer in respect of contributions paid by the employee to an approved pension fund or scheme.
Doubtful cases should be referred to the Inland Revenue Department.
The following should be treated as pay for taxation purposes:
- Benefits under the Workmen’s Compensation act.
- Payments of or contributions by the employer towards expenses that were actually incurred by the employee in performing the duties of his employment
- Any salary, fees or share of profits which can be taken into account in computing the gains or profits from a trade, profession or vocation.
If any employer is doubtful whether a particular payment should be treated as pay for tax deduction purposes, he should contact the Inland Revenue Department.
What payments are credited to an employee's account?
Crediting pay to an employee’s bank account constitutes “Payment” in the same way as payment in cash and tax should be deducted accordingly. The same positions applies if the amount is credited to an account with the employer on which the employee is free to draw or is applied in reduction of a debt due to him to the employer, unless the debt arises from a payment in advance or on account of remuneration from which tax was deducted.
In certain circumstances, pay may be credited to an employee in some special way which makes it doubtful whether the “Pay” has actually been “Paid”. When there is any such doubt the matter should be referred to the Inland Revenue Department
Who is required to file a declaration?
Every Employee is required to file a declaration on TD Form A4-1 certifying the amount of allowances claimed. In the event an employee has not obtained a code number from the Inland Revenue Department use the personal allowances plus medical of 400.
E.g. Income year 2017 personal allowance – 18,000. Tax code = (17,000 + 400) = 18,400
Use 184M for Monthly, 184F for Fortnightly or 184W for Weekly.
What amount should be deducted and when should the deduction be made?
- For persons just joining your organization
- If the person starts in January use the whole year calculation screen
- If the person starts during the year use the other than whole year calculation.
- If the person can provide you with total salary, NIC and tax deduction from previous employer for the same income year then use the change in salary screen.
- For persons who change their tax code or receive a change in salary without a bonus, or gratuity or retroactive pay. Use the salary change and tax code screen.
- For persons receiving a bonus, gratuity or retroactive pay use the retroactive pay screen.
- For Non resident Use the Non resident screen.
Note: NIC should not be deducted from the current salary when entering it in the program. E.g. if employee salary is 2500 then enter the full amount and the system will calculate the NIC deduction.
What about accounting for amounts deducted?
Tax deductions withheld from employees are trust funds in the hands of the employer until remitted to the Comptroller, the amount deducted in one month must be forwarded to the Comptroller of Inland Revenue on or before the fifteenth of the following month. The appropriate remittance form must be used for this purpose.
An employer failing to remit by the due date is liable for the amount deducted plus a penalty of 10% of the amount deducted and interest of 1% per month above the prevailing market rate of interest.
On making any payment of emoluments to an employee whose emoluments tax is deducted, the employer, unless exempted by the Comptroller, must furnish each employee with the particulars of the payment including particulars of the gross emoluments for the pay period and the amount of tax deducted thereof. Any exemption granted by the Comptroller may at any time be revoked. Every employer must keep, to the satisfaction of the comptroller, a record of the emoluments paid to and the tax deducted from each employee.
What happens if the employee has left?
If you permanently cease to employ an employee or on the death of an employee, you should complete the form P45 in triplicate. Give the original copy to the employee (or if deceased, to his personal representative or next of kin) or post it to him or them not later than the day when the last payment of emoluments was made and send two carbon copies to the Comptroller. When making payment to any next of kin or personal representative tax should be deducted as if such employee had been alive at the time of payment.
What about annual return of emoluments paid?
Form copy numbers 1 and 2 of the TD5 (white and blue copies), which are rouletted, should be given to each individual employee not later than 31st January of each year. No.3 is to be sent to the Comptroller no later than 31st January of each year; and No.4 is for the employer. Where P45 has been used for cessation (See note 8) do not include on TD5 the employees who have left.
What if the employee has died?
If an employer dies anything which he would have been liable to do under the Income Tax Act shall be done by his personal representative or, in the case of an employer who paid emoluments on behalf of another person, by the person succeeding him, or, if no person succeeds him the person on whose behalf he paid the emoluments.
What if there is a succession?
The change is not treated as a cessation of an employment but the new employers are liable to do everything that the previous employers would have been liable to do. The employers after the change will not be liable for payment of any tax which was deductible from emoluments paid to the employee before the change took place.
What if there is a cessation?
When an employer ceases to carry on business he must pay over to the Comptroller all tax that was deducted and has not been paid over, within fifteen days of the day on which the last payment of emoluments was made, and complete Form TD5. He shall give Part1 and 2 to the employee or post it to him not later than the last day when the last emoluments were paid and sent within fifteen days, Part 3 to the comptroller.
When should tax not be deducted?
- The employee performs his duties wholly outside St. Lucia, or,
- The employment is outside of St. Lucia and the emoluments are paid outside St. Lucia, or,
- The Comptroller by public notice or in any other manner directs that tax should not be deducted unless the Comptroller directs that tax should not be deducted.
Doubtful cases should be referred to the Inland Revenue Department
How should I take deal with casual or seasonal employment?
Specific arrangements for tax deductions may be necessary with employers in respect of certain types of employments including casual and seasonal employments, where it is found that tax deductions may be impracticable or would cause undue hardship. A specific notice in writing will be given by the Comptroller.
What do I need to do for employment on the gang or squad system?
Where wage earners are employed on the gang or squad system the responsibility for the correct deduction of tax rests with the employer, i.e. the employer of the gang leader. The employer should ascertain from the gang leader what wages are due to each employee so that:
- He (the employer) can deduct the correct tax
- Deliver to each employee in January a certificate of wage and tax deducted, and
- Send two copies to the comptroller
Where there is any doubt the matter should be referred to the Inland Revenue Department.
If the gang leader is not an employee, then the gang leader is the employer, and he is responsible for: the correct deduction of tax; the accounting each month to the revenue; and, for supplying the required certificates. It would assist the Inland Revenue Department if the names of such gang leaders were reported so that they may receive the appropriate forms.
What do I do if errors are discovered during the year?
Errors discovered during the year in respect of an earlier week or month should be reported at once to the Inland Revenue Department which will give any instructions necessary.
What is the penalty for failing to comply?
Any employer who wilfully fails to deduct in accordance with the Income Tax Act or any direction given hereunder by the Comptroller shall be liable on conviction to a fine of one thousand dollars or to imprisonment
How long is the compliance certificate valid for?
Your property tax compliance certificate is valid for six (6) months however, if you have made a payment arrangement with a Collections officer, the officer usually makes it valid for three (3) months.
Can I download the form for compliance from the website?
Yes, you can now download the form and notes on supporting documents. Please note that for some transactions a property tax officer will also need to interview you in order to process your certificate accurately.
If I own no property do I need a compliance certificate?
Answer: Yes, your financial institution/lawyer will make you apply for compliance certificate for property tax whether or not you own property.
How long does the objection response take?
Within 20 working days
How long does the Exemption take?
Within 20 working days
What time during the year do Assessments go out?
We try to send them out as close to your anniversary date as possible; (i.e. the date you received your first assessment); however, you may get it a little earlier or later due to circumstances beyond our control.
How long does the offsetting process take?
The time frame of the refunds offsetting process is mainly due to the availability of funds, once funds are available the offsetting process normally takes three (3) weeks.
What happens if I fail to furnish Inland Revenue with a declaration form?
If we did not capture information on your property during our island wide visit a few years ago, we will schedule a site visit with you and will value your property and thereafter generate assessments.
I am over sixty and renting an apartment downstairs my residence, will I qualify for a property tax pension exemption?
No. Consequent to changes in the Land & House Tax Act, pension exemptions no longer apply.
I am a business owner, how do I begin to pay property tax?
The obligation is incumbent upon the owner to first submit a Commercial Valuation report to the Inland Revenue Department. Where an owner of commercial property submits a valuation report, the Comptroller may accept such report and make an assessment in accordance therewith. Where the Comptroller is not satisfied that the report furnished by any owner of commercial property is true and correct, he or she may make an assessment to the best of his or her judgment and to that end, he or she may cause a valuation to be made of the said property. The tax liability is then generated from the Open Market Value of the property.
Where do I pay my Property Tax?
At the Inland Revenue Department or the district councils offices in which the land/house liable are/is situated.
Who do I make a cheque, money order or bank draft payable to?
All cheques or money order should be made payable to the Accountant General.
Do I receive a receipt after making my property tax payment?
Yes an electronic or manual receipt should be given to you by the cashier or revenue clerk
What is the collection fee?
A penalty for not paying your property taxes on time
How is market value determined?
When determining the market value for a particular property, assessors consider each property’s unique characteristics. These are the same characteristics that a home buyer would consider, including size, layout, shape, age, finish, quality, number of carports, garages, sundecks, and condition of buildings. Services in the area, location, views and neighbourhood may influence a property’s market value.
Assessors may enter a home to conduct property inspections, ensuring that the description and condition of a property is accurately reflected on the property tax assessment notice. Assessors analyze all property tax sales in St. Lucia and develop common units of comparison and corresponding values. The review similarities and differences between properties to arrive at a uniform assessed value for a particular property.
Why are assessments based on market value?
Market value assessment is widely considered to be the fairest system for distributing the property tax burden.
In any tax area, properties of equal value contribute the same tax, while higher-value properties contribute more than those with lower values. Both assessors and taxpayers can readily check assessments by comparing recent sales and assessment of similar properties in the neighbourhood.
What is VAT?
Value Added Tax or VAT as it is commonly known is an indirect tax charged on taxable imports and the added value to taxable goods and services, supplied to one business to another or to a final consumer.
VAT is NOT an additional tax, but a replacement for some existing indirect taxes. It will be a broad-based, efficient and simplified tax on transactions.
What are the current Consumption Tax rates in Saint Lucia?
The Consumption Tax is levied on goods imported into or manufactured in the State, with rates ranging from 0% to 35%.
What is the VAT rate in Saint Lucia?
The standard rate is 12.5%, with a reduced rate of ten per cent (10%) on the supply of hotel accommodation services by a hotel and the supply of food and beverage and other related services including tours by other providers in the tourism sector.
Which tax legislations were replaced by the VAT Act?
The following tax legislations have been replaced by VAT:
- Consumption Tax Act, Cap. 15.03
- Environmental Protection Levy Act, Cap.15.20
- Motor Vehicle Rental Fee Act, Cap.15.23
- Mobile Cellular Telephone (Tax) Act, Cap.15.36
- Hotel Accommodation Tax Act, Cap.15.10
How does VAT affect Prices?
The prices of goods and services have (in some cases) decreased, increased or remained the same.
Are there any benefits from changing to a VAT system?
Yes. VAT will improve, simplify and modernize our tax system. Businesses that are registered for VAT (known as taxpayers) will be able to offset the VAT payable, against the VAT they have charged on sales. Only, the difference is paid to the Inland Revenue Department (IRD).
Any excess may be available to set against future VAT liability or for repayment. The flow of tax to the Government will be improved, since VAT is collectible and payable at each stage in the transfer of goods or the supply of services.
Can anyone charge VAT?
No. Only those businesses that are registered for VAT with IRD can charge VAT. A list of registered businesses have been made public.
What are the requirements for VAT registration?
In order to charge VAT, a business must be trading in taxable supplies and meet a particular Threshold. The threshold is the minimum sales of taxable supplies for a business in one year. The threshold for Saint Lucia is $400,000.00.
How does a consumer know that a business is registered?
Every registered business or person will be issued a Certificate of Registration, which must be displayed in a conspicuous place. If the business or person cannot show the consumer the Certificate of Registration, the consumer should not pay the VAT, and must report the incident immediately to the IRD.
Is VAT charged on all domestic products?
Not all goods and services will be charged under a VAT system and these will be classified as Exempt or Zero-rated.
What are taxable goods and services?
Taxable goods and services will attract a VAT rate of 12.5%, 10% and 0%. Only a VAT-registered business can charge VAT on the sale of taxable goods and services.
What are Zero-rated goods and services?
Zero-rated supplies are goods and services that will be taxable but at the rate of zero percent (0%).
Even though a zero percent rate is charged on supplies to the consumer, a VAT registered person is allowed to claim input tax on purchased/expenses used in making the zero-rated supplies. This mechanism ensures that VAT is completely removed from the supply.
What are exempt goods and services?
Exempt supplies are those goods and services that are not directly subject to VAT. This means that VAT cannot be charged on the sale of exempt supplies. Businesses and persons engaged in supplying exempt goods and services cannot claim input tax credit on purchases associated with the exempt supplies.
What is the "Time of Supply"?
A supply of goods or services occurs on the earliest of the date on which:
- the goods are delivered or made available or the performance of services is completed;
- an invoice for the supply is issued by the supplier; or
- any consideration for the supply is received.
Should a consumer be given a receipt each time a purchase is made from a registered business?
A registered business must issue a receipt to the consumer each time a purchase is made.
Further, customers that are registered businesses must be given a proper tax invoice for every purchase, from a registered business.
Would VAT be charged on all imports?
Not all imports of goods and services will be charged VAT and these will be classified as exempt or zero rated.
Would VAT apply to Hire Purchase Transactions or Finance Leases?
VAT would be charged on the cash value of the item being sold. The cash value is the consideration at which the goods are normally sold by the dealer for cash.
How are Capital Goods treated?
The Comptroller may exempt from tax, capital goods imported, if the following conditions are satisfied before the importation:
- the importer is a registered person;
- the importer has a valid license under the Fiscal Incentives Act, Cap.15.16;
- the importer has not commenced taxable activity;
- the Minister of Finance approves of a Master List of the capital goods eligible for exemption;
- the goods are consigned directly to the approved importer;
- the capital goods eligible for exemption are goods to be used in a taxable activity;
- the importer whose investment has been approved under the Fiscal Incentives Act, Cap.15.16 has filed all required returns and paid all taxes due under all tax acts;
- the importer agrees to pay the amount of tax otherwise payable on the import of the capital goods if the importer violates the terms of the license agreement, if the importer’s registration is cancelled as a result of the expiration of the license, or if the registration is cancelled.
When is a VAT refund payable?
The credit is carried forward and used as an input tax deductible in three consecutive tax periods, after which the taxable person may file with the Comptroller a claim for refund for the remaining amount.
Additionally where more than fifty percent of a registered taxpayer’s activity is zero-rated a claim for a refund may be made after one month.
How do you treat businesses that have in stock large inventory of goods when VAT is introduced?
In principle, no input tax would be allowed in lieu of consumption tax and other taxes paid on imports (and domestic supplies) prior to implementation date. However, three options have been identified to facilitate the smooth transition from the consumption tax regime to VAT:
- Depletion of stocks to minimum levels
- Government in conjunction with the Saint Lucia Air and Sea Ports Authority (SLASPA) will allow free storage at the ports for a three month period
- During the transitional period only, businesses which have existing storage facilities will be afforded the option of converting these facilities to bonded warehouses, where goods can be stored without payment of duties until removal from said facility
What are exports?
Exports are goods and services supplied to a person or business outside of Saint Lucia, supported by documentary evidence provided to the Comptroller of Customs and Excise, where necessary.
In principle exports are usually free of duties and taxes to maintain competitiveness on the international market. Likewise with the VAT, all exports of taxable supplies would be zero-rated. However, since a zero-rated supply is deemed taxable (at a rate of zero), a company involved in the export of goods would be entitled to claim a refund for the VAT paid on inputs used in producing the goods for export.
Should prices always be VAT inclusive?
All VAT registered businesses must display VAT inclusive prices.
Is VAT charged on Electricity and Water?
The supply of electricity and water is zero-rated.
Should Duty-Free businesses charge VAT?
Goods sold to visitors and residents for export, upon the shop owner being satisfied that the conditions outlined under the Tourist (Duty-Free Shopping System) Act, Cap 15.31 are complied with, will be zero-rated. However, if registered duty free vendors sell locally they are required by law to charge and collect VAT.
Are there any provisions in the proposed VAT Act to deal with Delinquent Taxpayers?
The VAT Act allows for temporary closure of the businesses with outstanding tax obligations and for other serious penalties and fines.
How would contracts already signed before the implementation of VAT be treated?
Even if no provision was made for VAT, the registered person must charge VAT on taxable supplies made after the effective date.
What will happen to items already on the shelves at implementation date?
Items already on the shelves at implementation date would have consumption tax included in the prices. At implementation date, these items will now also attract VAT.
Are street vendors affected by VAT?
If the street vendor meets the threshold of $400,000, he or she is required by law to register, and therefore must charge and collect VAT. Street vendors below the threshold will not be able to charge or collect VAT, however they will pay VAT on their purchases.
How would the policing of the VAT change compared to the present system?
Under the VAT system, the Input/Output Credit system enforces the issue of having correct invoices, which allows for paper trail (one business’ output is another business’ input), therefore encouraging the self policing nature of the tax.
Further, the VAT legislation makes provisions for the strict enforcement of penalties for those who are in violation. Staff will be provided specifically for monitoring and enforcement. There will also be more coordination between the Customs and Excise Department and the Inland Revenue Department.
Are medical services exempt?
The supply of medical services, except for elective services that are cosmetic in nature, is exempt from VAT.
Select a tab to observe the checklist of important documents when making submissions to the IRD