INLAND REVENUE DEPARTMENT
Government of Saint Lucia


3rd Floor, Heraldine Rock Building
Castries Waterfront
Saint Lucia


(758) 468 4700 Castries
(758) 468 4700 Vieux Fort
(758) 459 7036 Soufrière


Email us here


GENERAL

Frequently-Asked Questions

General
Who must file Income Tax Returns?
If an individual has failed to submit Income Tax Returns for several years, what is his or her obligaton in respect of those missing years?
Should an income tax return still be submitted if, in any year of income, a small business or a company suffers a loss?
What are the requirements for registration?
Where should I register?
What is a Tax Account Number (TAN)?
Why the TAN?
Who needs a TAN?
A taxpayer discovers that he has been given two Tax Account Numbers (TAN). What must he do?
When a taxpayer changes his or her name and/or address, how is Inland May 31, 2007 fied?
What are some factors which delay the normal processing of a return?
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?
My business operations ceased during the year. Am I still obligated to file an Income Tax Return Form?
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?
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?
   
Paye-As-You-Earn (PAYE)
   
Personal Allowances
My husband is unemployed. Can I claim an allowance for him?
I had a baby in December. Can I still claim for the child?
I maintain my niece who is eighteen (18) years of age and who is unemployed. Can I claim for her as my dependent relative?
My daughter Kim, is 10 yers old and attends the La Croix Combined School. Do I still claim the $1,000?
My relative attends St. Mary's University in Canada. What can I claim for him?
Can my brother who is employed be classified as a Dependent Relative?
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?
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?
   
Allowances & Deductions
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?
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?
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?
I pay subscrition for shares with the St. Lucia Civil Service Credit Union. Can I claim for this?
In an effort to secure funds to build my home, a Savings Plan was started with my Credit Union. Can I claim this amount as a deduction?
In 1999, I took a loan to pursue a degree programme at the University of the West Indies. Is this an allowable deduction?
I invested in the purchase of a solar water heater during 2001. Can I aim the expenses which I incurred?
I took advantage of the offer made by the Bank of St. Lucia and purchased shares. Can I claim for this?
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?
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?
I make contributions annually to the World Wide Church of God can I claim for this as a donation?
What are some of the business expenses which can be claimed by the self-employed?
Is there a specified period of time in which the books and records of a business must be maintained?
Is Agricultural income exempt?
How is Wear & Tear (Capital Cost Allowance) granted on fixtures and equipment used in business?
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?
   
Concessional Deductions
   
Income Tax Rates
   
Penalties For Infringement Of The Tax Laws
 
Instructions to Employers
Who must pay tax?
What is subject to tax deducation?
What Payments are credited to employee's account.?
Who is required to file a declaration?
What amount should be deducted and when should the deduction be made?
What about accounting for amounts deducted?
What if the employee has left?
What about annual return of emoluments paid?
What if the the employee has died?
What if there is a succession?
What if there is a cessation?
When should tax not be deducted?
How should I deal with casual or seasonal employment?
What if the wage earner is employed on the gang or squad system?
What should I do if errors are discovered during the year?
What is the penalty for failing to comply?
 

GENERAL

Who must file Income Tax Returns?

(a) Every resident individual who is in receipt of income of over $16,400 in any year;

(b) 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, shopowners, contractors, etc.;

(c) Every corporation, whether or not a profit is made;

(d) Corporations and Individuals to whom exemption of Tax has been granted under the Fiscal Incentive Act or otherwise;

(e) Partnerships.

 
If an individual has failed to submit Income Tax Returns for several years, what is his or her obligaton 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 refuses to do so is quilty of an offense and should seek to correct this situation as early as possible. The 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 finanical 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?

Individuals

A completed and signed registration form should be submitted along with any of he following forms of identification:

Passport, Drivers Licence, National ID, NIC card.

Self-Employed persons

In addtion 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.

Partnership

The registration for the partnership signed a partner must be submitted along with:

  • Certificate of registration for the partnership;
  • National insurance number for each partner.

Companies

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:

  1. Create and maintain accurate files for taxpayers;
  2. Eliminate the duplication of information on taxpayers within the department.
 
Who needs a TAN?

ALL TAXPAYERS doing business witht the Revenue Departments need a 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 National Insurance 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:

(a) Tax Account Numbers
(b) Addresses
(c) Signatures
(d) Complete or correctly filled information
(e) Certificates of renumeration and PAYE deductions
(f) 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.
 

Top Home

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.
 
   


PAYE-AS-YOU-EARN: PAYE

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.

 

PERSONAL ALLOWANCES

My husband is unemployed. Can I claim an allowance