The St. Lucia government Friday announced that the new income tax exemption, intended to provide financial relief to pensioners and beneficiaries of certain social security payments, went into effect as of January 1 this year.
It said the measure come into force following the enactment of the Income Tax (Exemption) (No. 4) Order. The Inland Revenue Department (IRD) said that under the new measures, the following income is exempt from income tax, namely pension income, pensions payable by the Government or an approved pension fund as well as pensions payable by a non-approved pension fund or directly by an employer (and earned income of senior citizens.
In addition, income earned by a resident individual who is a St. Lucia citizen and has attained the age of 60 years excluding pension income is exempt from income tax up to a maximum of EC$6,000 (One EC dollar=US$0.37 cents)per year.
IRD Acting Comptroller, Felicia Ellie, is encouraging employers, pension administrators, and payroll officers to ensure that payroll systems and tax deductions are updated to reflect these exemptions.
The authorities said that pensioners with additional income – other than pension income – will still be required to file a tax return annually.
‘Pensioners are encouraged to file their tax returns for Income Year 2025 by the due date March 31, 2026, especially where tax were deducted from their pension income,’ the IRD added.