Resident companies are taxed on gains or profits accrued directly or indirectly from all sources in Saint Lucia and are subject to tax at a flat rate of 30%. The 30% tax rate is only applicable to companies that, prior to income year 2003, have no tax arrears and have complied with the requirements of any enactment administered by the Inland Revenue Department (IRD). The tax rate of 33.33% will still apply to those companies that have tax arrears and have not complied with the requirements.
A new territorial tax system for all companies is in effect after 31 December 2018, subsequent to the Organisation for Economic Co-operation and Development's (OECD) Harmful Tax Practices - 2018 Progress Report on Preferential Regimes publication on 24 January 2019.
Based on the new territorial system, resident companies, except for those incorporated as international business companies (IBCs) before 1 January 2019 that have elected to pay 1% tax, shall not be taxed on income accruing from sources outside of Saint Lucia.
Non-resident companies are taxed on Saint Lucia-source income. The gross amount of such income is liable to 25% withholding tax (WHT), while WHT of 15% applies to interest.
Associations of underwriters are taxed at 30% on 10% of the gross premium arising in Saint Lucia, and life insurance companies are taxed at 30% on 10% of the gross investment income arising in Saint Lucia.