INLAND REVENUE DEPARTMENT St.

Lucia
MINISTRY OF FINANCE

ALLOWANCES & DEDUCTIONS

FOR INDIVIDUALS
Page 2 Allowances & Deductions

In our continued aim to ensure that our Tax Returns are

user friendly, the Inland Revenue Department has
produced this brochure to assist individuals in the
preparation of their Income Tax Returns. The following
are basic allowances and deductions that can be claimed.

Section 4
Personal Allowance:

A resident individual is entitled to a personal allowance as

follows:

$16,000 - from Income Year 2005

$17,000 - from Income Year 2009
$18,000 - from Income Year 2013

Enter amount on Line 120

Spouse Allowance:

An allowance of $1,500 is granted to a resident individual in

respect of his/her spouse, if during the income year the spouse
was maintained by him/her.

To qualify for this deduction you must be legally married and

your spouse’s income for the year must not exceed $3,000.
Where the spouse has assessable income between $1,500 and
$3,000, the allowance will be reduced by one dollar for each
dollar in excess of $1,500.

Enter amount on Line 121

Section 2 - Schedule A
Dependants & Medical Expense Allowance

Children & Education Allowance:

‘Child’ includes a stepchild, a child born out of wedlock or a

Allowances & Deductions Page 3

legally adopted child.

If during the Income Year you maintained a:
 Child who is less than 10 years old:
Claim $1,000 per child
 Child who has attained the age of 10 years old and was a
student either in St. Lucia or elsewhere:
Claim $2,000 per child
 Child with permanent disabilities irrespective of age:
Claim $1,000 per child

For a child/relative maintained during the income year who

attended University or an equivalent educational institution the
allowance is $5,000. Documentary evidence from the institution
must be furnished.

Enter total on Line 8

Dependent Relative Allowance:

A resident individual is entitled to claim $350 in respect of each

dependent relative that he maintains. ‘Dependant Relative’ is a
person who (a) whether incapacitated or not is the parent or other
lineal ancestor or aunt, uncle of that individual or his/her spouse and is
unmarried, divorced, widowed or separated or (b) is incapacitated by
old age or infirmity or unemployment by reason of old age and is the
child, brother or sister of that individual or of his/her spouse.

Enter total on Line 9

Housekeeper Allowance:

An allowance of $200 is granted to a resident individual who is a

widower/widow or is unmarried, divorced or separated, in
respect of a relative maintained by him for the purpose of caring
for his child(ren).

Enter total on Line 10

Page 4 Allowances & Deductions

Medical Expenses:

Relief is granted in respect of medical expenses incurred by an

individual during the income year on behalf of himself or on behalf
of a dependent. Please note that only original receipts and bills
will be considered. There is, however, an automatic allowance of
$400 without any bills or insurance. If the taxpayer has a Medical
Insurance Policy the total allowance is:
a) Premiums paid for the year; plus
b) Claims not reimbursed (Amount Paid less Amount Claimed);
plus
c) Receipts on-hand

Enter total on Line 11

Note: Bills and receipts should be kept and presented

only upon the request of the Comptroller. However,
where an individual has Medical Insurance this statement
must be attached to the Tax Return.

Enter totals from Lines 8, 9, 10, 11 on Line 12

Enter total Dependants & Medical Expense Allowances from

Line 12 on Line 122 of the return form.

Section 2 - Schedule B
Future Benefits:

Individual Registered Retirement Savings Plan/Approved Pension Fund

A deduction is allowable for contributions to Retirement Plans or

Pension Schemes approved by the Department. Maximum
amount allowable cannot exceed $8,000 in respect of each
deduction

 For Life Insurance & NIC you may claim the lesser of:
a) the actual premiums paid;
b) 10 percent (10%) of the assessable Income; or
c) $8,000;
 For Pension Funds established in St. Lucia - you may claim
the entire amount of your contribution;
Allowances & Deductions Page 5

 For Funds not established in St. Lucia and participation

commenced before 1988, 50% of the contribution is
allowable.

Complete the relevant table. Add Lines a, b & c and enter total
on Line 13

Life Insurance Payments and National Insurance Contributions

 You are entitled to claim premiums paid on the life of

yourself, spouse and/or children to local insurance companies;
 You are entitled to claim your contributions paid under the
National Insurance Act.

Complete Tables d & e. Enter total on Line 15

Note:
 The total of Life Insurance and National Insurance
Contributions is limited to the lesser of:
a) Actual payments;
b) Ten per cent (10%) of Assessable Income; or
c) $8,000 (this is the most which can claimed).
 Foreign Life Insurance premiums claims are
restricted to 50% of the amount paid.
 Please remember to attach the certificates from the
Insurance Company.

Complete the relevant table. Add Lines 13 and 14 and enter

total on Lines 15 & 123 of the return form.

Section 2 - Schedule C
Other Allowable Deductions

Registered Home Ownership Savings Plan (RHOSP)

Relief is granted to a resident individual who makes contributions

to an approved RHOSP up to a maximum of $6,000. Supporting
documentation from the financial institution must be submitted.

Enter amount on Line 16

Page 6 Allowances & Deductions

Owner Occupied Residential Property

The following Deductions are allowable:

 Mortgage Interest paid for the acquisition, construction or
improvements to your home which is situated in St. Lucia up
to $18,000 or $20,000 for first time homeowners.

Note: Supporting documentation from the bank or

lending institution must be submitted.

Note:
 Owner Occupied Dwelling House means a dwelling
house situated in St. Lucia which is occupied by the
owner, either alone or together with family, or
occupied rent-free by members of the family.
a) House Insurance Premiums. Receipts must be
submitted.
b) House Tax. Receipts must be submitted
 As of Income Year 2008, the deduction for Mortgage
Interest is not granted to an individual whose House
Tax is outstanding.

Enter amount on Lines 17a, b & c

Repairs & Maintenance

Relief is granted for up to $10,000 for expenses reasonably

incurred in the up-keep and maintenance of the owner-occupied
dwelling/house. A detailed description of what repairs were
undertaken to the property must be attached to the return. Bills
and receipts should be kept and presented only upon request by
the Comptroller.

Enter amount on Line 17d

Note: Where two or more persons are entitled to relief

from Lines 17a through to 17d, the claims may be
apportioned (among the parties involved).
Allowances & Deductions Page 7

Donations

A deduction is allowed in respect of amounts paid during the

income year:
 Under a deed of covenant for a period of not less than three
years in favour of any religious, charitable, medical or
educational institution or sporting body or fund of a public
character approved by Cabinet;
 To the St. Lucia National Trust;
 To the Loan Fund established under the Further Education
(Loan Fund) Act, 1969.
Note: The deduction is limited to 25% of your assessable
income.

Enter amount on Line 18

Subscription for Credit Union Shares

A deduction of up to $5,000 is granted for payments by way of

subscriptions for shares in any society registered under the Co-
operative Societies Act or incorporated under the Building
Societies Ordinance.

Enter amount on Line 19

Student Loan Interest

A resident individual can claim a deduction of a maximum of

$3,000 in respect of the interest on a student loan taken to
finance his/her tertiary education.

Enter amount on Line 20

Alimony and Maintenance Payments:

 The full amount of maintenance or separation allowance paid

to a spouse under a Deed of Separation or Court Order is
allowable.
Page 8 Allowances & Deductions

 The full amount of alimony paid to a former spouse from

whom he/she is divorced.
 The deduction allowable shall not apply unless the person
receiving the allowance or alimony is chargeable to tax in
St. Lucia.

Enter amount on Line 21

Solar Water Heater:

From Income Year 2005 up to and including Income Year

2007, a deduction of up to $6,500 shall be allowed to a resident
individual for the purchase and installation of a new solar water
heating system.

Enter amount on Line 22

SECTION 3
Calculation of Net Income
Wages and Salary from Public Sector 100

Wages, Salary & Benefits from Private Sector 101 29,000

Gross Employment Income 102 29,000
Less: Age 60 and over Allowance ($6,000) 103
Net Employment Income 104 29,000
Pension Income Gross $______________________ less $6,000 exemption 105
Gross Interest Received (from Fixed Deposits) 106
Other Taxable Income (Alimony, Commissions, etc.) 107
Rental/Leased Income (Loss) 108

Business/Professional Income (Loss) 109

Total Income 110

Less: Prior Year(s) Losss 111

Assessable Income 112

 Allowances & Deductions Page 9

Shares in Public & Private Companies:

A resident individual who purchases new shares issued by a

resident public company shall be allowed as a deduction, an
amount not exceeding $5,000.

Enter amount on Line 23

Other:

Relief is also granted to a resident individual who makes

payments:-
 For the preparation of his tax return;
 By way of subscriptions to a professional association.

Enter amount on Line 24

Add up all your payments and contributions under this schedule

and enter the total on Lines 25 & 124 of the return form.

OFFICIAL
USE ONLY

100

ector 101 29,000

ome 102 29,000
0) 103
104 29,000
_________ less $6,000 exemption 105
osits) 106
ssions, etc.) 107
108

109
110

111

112 29,000
Page 10 Allowances & Deductions

SECTION 4 Tax Calculation:

Assessable Income 112

Personal Allowance Claim - $17,000 120 17,000

Spouse Allowance (see page 1 of guide) 121 _
Dependents and Medical Allowance (Schedule A, line 12, page 2) 122 1,400
Future Benefits (Schedule B, line15, page 2) 123 1,400
Other Allowable Deductions (Schedule C, line 25, page 2) 124 550
Total Allowances and Deductions 125

Chargeable Income 126

Total Income Tax on Chargeable Income 127

Add: Late Filing Penalty 128

Total 129

Payments and Credits:

Double Taxation Credit and other Credits 130
PAYE Deductions by Employer 132 1,350 00
Prepayments or Installment Payments 133
Total Payments and Credits (Add lines 130, 132 and 133) 134

Net Tax Payable (if line 129 exceeds line 134 enter difference here)
Net Tax Payable (if line 134 exceeds line 129 enter excess on line 136) 135

Refundable Amount (excess of line 134 over line 129 136

Amount Enclosed 137

 Allowances & Deductions Page 11

culation:
Assessable Income 112 29,000
120 17,000
121 _
edule A, line 12, page 2) 122 1,400
e 2) 123 1,400
, line 25, page 2) 124 550
125 20,350
126 8,650
127 865 00
128

Total 129 865 00

130
132 1,350 00
133
30, 132 and 133) 134 1,350 00
29 exceeds line 134 enter difference here)
34 exceeds line 129 enter excess on line 136) 135

ver line 129 136 485 00

Amount Enclosed 137

 Page 12 Allowances & Deductions

Section 4 - Tax Calculation

 Add Lines 120 through to 124 & enter total on Line 125.

 If Line 125 is more than Line 112 enter NIL or 0 on Lines

126 through to Line 129

 If Line 125 is less than Line 112, subtract Line 125 from
Line 112 & enter the difference or Chargeable Income on
Line 126

Once the Chargeable Income is determined you can now use the
Tax Calculation Chart in order to determine the total amount
of income tax payable on your chargeable income earned during
the year.

Tax Calculation Worksheet

If your Chargeable On the Tax is On the

Income on Line 126 is first remaining
amount
(Line B) (Line B1) (Line C)

From $0 to $10,000 — — 10%

From $10,001 to $20,000 10,000 1,000 15%
From $20,001 to $30,000 20,000 2,500 20%
More than $30,000 30,000 4,500 30%

Chargeable income (Line 126) A_____

On the first B_____ Tax is B1_____
On the remaining amount
(Line A minus B) C_____ Tax at_____% is C1_____

The total of B1 and C1 is your tax on chargeable income. Enter

on Line 127 of your return.
 Allowances & Deductions Page 13

Example 1
If Chargeable Income is $7,200, calculate the tax as follows:

Chargeable income $7,200.00

Tax on amount (10%) $7,200.00 $720.00

Tax on Chargeable Income $720.00

Example 2
If Chargeable Income is $16,728, calculate the tax as follows:

Chargeable income $16,728.00

On the first $10,000.00 $1,000.00

On the remaining balance (15%) $6,728.00 $1,009.20

Tax on Chargeable Income $2,009.20

 Page 14 Allowances & Deductions

Example 3
If Chargeable Income is $23,334 Calculate the tax as follows:

Chargeable income $23,334.00

On the first $20,000.00 $2,500.00

On the remaining balance (20%) $3,334.00 $666.80

Tax on Chargeable Income $3,166.80

Example 4
If Chargeable Income is $56,361 Calculate the tax as follows:

Chargeable income $56,361.00

On the first $30,000.00 $4,500.00

On the remaining balance (30%) $26,361.00 $7,908.30

Tax on Chargeable Income $12,408.30

Allowances & Deductions Page 15

Payments & Credits:

Enter Double Taxation credits and any other credits paid during
the income year on Line 130.

Enter PAYE amounts as per your TD5 Slip (Annual Salary Slip) on
Line 132.

Enter Prepayments (installments) made during the year on

Line 133.

Enter total of Lines 130, 132 & 133 on Line 134.

If total on Line 129 is greater than total on Line 134 enter the
difference on Line 135.

Line 135 denotes amounts outstanding in taxes to the

Department.

If total on Line 134 is greater than total on Line 129 enter the
difference on Line 136.

Line 136 denotes amount overpaid in taxes to the

Department.

Section 5
Payments

Taxpayer should indicate which manner preferred in receiving

refund by checking Boxes 150, 151 or 152

Section 6
General Declaration

Taxpayers must sign the return. This is absolutely necessary as it

denotes agreement with the information provided and the
declaration made.
 Friendly Tax Tips
The Tax Return must be submitted no later than 31st March .

To avoid interest and penalties you are to pay any tax owed by 31st March .

Your Name and Tax Account Number (TAN) and/or NIC Number
must be clearly stated on all attachments to the return.

You may make a copy of your Return Form for your own records.
Your business records must be retained for up to six (6) years after the Income Year
to which it pertains.

Permission must be sought from the IRD should you wish to destroy such records.

OUR MISSION

To optimize revenue collection and encourage voluntary compliance

using modern tax administration techniques while supporting
and developing a highly competent workforce

For further information, please contact us at our:

Head Office in Castries

Telephone Number: 1-758-468-4700/80
Fax Number: 1-758-453-6072

Customer Service 1– 758-468-4730/66/35

Tax Service Center in Vieux-Fort

Telephone Number: 1-758-468-4767/69
Fax Number: 1-758-454-9218

Soufriere Sub-Office
Telephone Number: 1-758-459-7360

Website www.irdstlucia.gov.lc

Revised by the Customer Service Unit of the

Inland Revenue Department