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5.1. Tax Base for Resident Entities

Effective from 1 January 2019, all companies (including IBCs – see Sec. 10.) are subject to a territorial tax regime whereby income earned from sources within Saint Lucia are subject to tax. Foreign-sourced income (see Sec. 5.5.) is not subject to tax in Saint Lucia. Previously, resident companies were taxable on worldwide income earned from within and outside Saint Lucia.

Capital gains, including capital gains derived from the sale of residential accommodation, are not subject to tax in Saint Lucia.

Dividends received by resident companies from other resident and non-resident companies are not taxable in Saint Lucia.

Interest income is subject to corporate tax, subject to certain exemptions such as interest earned on securities issued by member Governments of the Eastern Caribbean Central Bank and interest earned on loan to the Government of Saint Lucia under statutory instruments.

Any income earned from sale/ transfer of securities under the Securities Act to any company incorporated in and registered in any Member State of the Organization of Eastern Caribbean States is exempt from corporate tax.

Rental Income is subject to corporate tax except rental income derived from leasing of residential accommodation, subject to certain conditions.

Foreign exchange gains and losses are generally recognized only on the date of payment of the debt or settlement of the transaction. Unrealized gains and losses are not taxable/deductible for tax purposes.