The standard corporate tax ('CIT') rate for companies, including IBCs registered on or after 1 January 2019 (see Sec. 10.) is 30%. Certain companies having tax dues or which have not complied with the requirements of any enactment administered by the tax authorities are subject to CIT at the rate of 33.33%.
An association of underwriters is taxed at 30% of 10% of gross premiums derived in Saint Lucia. Life insurance companies are taxed at 30% of 10% of the gross investment income derived in Saint Lucia.
International Business Companies registered prior to 1 January 2019 have an option to either be exempted from corporate tax or pay a concessional corporate tax on their profits at the rate of 1%.
Companies eligible for tax incentives are subject to reduced CIT (see Sec. 10. below)
Withholding tax (WHT) on payments made to residents
- Tax is withheld at the rate of 10% on payments made to contractors for supply of labor or hiring of equipment, either directly or indirectly through a financial institution. A contractor is a resident person providing or supplying independent personal services for fees, subject to certain exceptions;
- A 10% withholding tax rate is applicable on royalty and technical service fee payments.
There is no minimum tax.