DEDUCTION OF TAX ON EMOLUMENTS

Under the Income Tax (Employment) Rules, every employer shall deduct tax on the payment of emoluments to any employee. Taxable emoluments are those arising or accruing in or derived from or received in St. Lucia. Deductions from salary or wages are required to be made in accordance with the Income Tax Deduction Tables prepared by the Inland Revenue Department.

 

The Inland Revenue Department has the authority to adjust the tax deductions of any employee. The Department will determine the amount to be deducted in the following cases:

        I.            Irregular Payment Periods
Where payment is made at other than regular weekly, fortnightly, monthly or annual intervals (e.g. Persons paid on a commission basis only).

 

      II.            Irregular Employment
In the case of casual or seasonal workers

 

    III.            Income Variations
Where the Department decides that the nature of the emolument is such that it makes the application of the Tax Deduction Tables impracticable

 

    IV.            Various Employments
In the case of an employee with more than one employment

 

In all cases the employer will use the tax Code Number issued by the Department and refer to the Tax Deduction Tables or our PAYE Calculator on our website to determine the amount of tax to be deducted at each pay period.

 

Where a taxpayer works for short periods and will have overpaid or will not be taxable because of the quantum of income, the approval of the Inland Revenue Department must be sought . The employer will thus be guided as to the taxes to be deducted.

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Ⓒ2013 Inland Revenue Department, Government of Saint Lucia.