If you want to incorporate in St Lucia, this article will educate you on the tax laws for an IBC which is the most common legal entity in St Lucia.
An International Business Company in St Lucia are entitled to do business outside the country and may have restrictions to do business within the territory. An IBC may elect to be exempted from tax on their offshore income, or may elect to be liable to income tax on its offshore profits and gains at a rate of 1% if it wants to benefit of the CARICOM Double Tax Agreement. This ranks St Lucia as 1st overall with regards to corporate tax rate worldwide.
IBCs in Saint Lucia are commonly used for privacy and asset protection, offshore savings and investments, holding company, international trading, professional services and financial management.
An IBC in Saint Lucia may be formed by one or more shareholders, one or more directors and one secretary, who can be natural or legal persons. Nominee shareholders and directors are permitted. A registered agent and a registered office in St Lucia may be required. There is no paid up capital requirement. Shares may be issued with par or without par value. Bearer shares are not allowed.
Details of shareholders, beneficiaries and directors are not publicly disclosed. IBCs are required to keep financial records. However, they may be not required to file annual reports, annual tax return, financial statements or audit, unless they elect to be liable to income tax.
Dividends paid or received by an IBC are tax exempted. A dividend is a distribution of a portion of a company profit, voted on by the board of directors, to shareholders.Dividends can be one of the following stock, cash, or property. Capital Gains are not taxable. A capital gains tax is levied on the profits that a corporation or natural person realizes when they sell sells a capital asset for a price that is higher than the purchase price.
There is no withholding taxes on payments on dividends, interests or royalties made by an IBC to non-residents.
The value added tax (VAT) rate in LC is 15.00%, which ranks St Lucia as 79th overall in terms of VAT globally.
There is no known tax on wealth in St Lucia. There are real property and transfer taxes. There are no known inheritance taxes in LC.
The above is not tax or legal advice for your particular circumstances. We can help you find to an accountant in St Lucia who can give you the proper advice and help you need. Contact us today. Click the free consultation button above.
It takes approximately 11 hours to file and prepare documents for a Saint Lucia Common law.
The corporate tax is approximately 0% which is 1 in the world.
Owners of a company in Saint Lucia are not allowed to carry back a loss and may be allowed to carry forward a loss for 6 years.
The vat rate in Saint Lucia is 15% which ranks 78 in the world.