The St Lucia government has received a stamp of approval from the International Monetary Fund (IMF) for its implementation of the controversial new Value Added Tax

Two years ago I wrote about the moves that the Caribbean island nation of St. Lucia was in talks with Qualibou Energy to launch a geothermal power project. Not much news about the initiative has been made in the past year and a half, but St. Lucia is still determined to harvest its vast potential resource of clean energy. Now a firm in South Korea could be interested in investing in a similar project.

Despite reservations among lawmakers about business readiness, operational costs and timing, the St. Lucia Senate has passed the Value Added Tax (VAT) Act, keeping the legislation on course for the revised October 1 implementation date.

The St Lucia Pitons has escaped being added to the World Heritage Danger List by the World Heritage Committee.  The International Union for the Conservation of Nature, IUCN, had recommended that Pitons Management Area in the Caribbean island nation of Saint Lucia, along with Lake Turkana National Parks in Kenya, the Dja Faunal Reserve in Cameroon, and the Virgin Komi Forests in Russia, be added to the List of World Heritage in Danger.

The Saint Lucia Tourist Board wishes to recruit a Senior Manager, Human Resources. The Senior Manager, Human Resources will be responsible for providing leadership for the development and execution of the human resources function in support of the overall strategic direction of the organisation, including: human resource planning, recruitment, selection and retention; training and development; performance management; succession planning; compensation and benefits; employee relations; human resource policy development and implementation and industrial relations.

Grammy award winners Diana Ross and Toni Braxton are the headline acts for the St Lucai Jazz Festival. Both Ross and Braxton came in as replacement singers for Lionel Richie, who pulled out citing other engagements.

Children of St. Lucia can now enjoy Chee Chee, the rambunctious monkey who takes his human friends on magical journeys in the Caribbean Adventure Series of books written by Carol Ottley-Mitchell.

The International Alliance for Child Literacy (“IACL”), a U.S.-based non-profit charity continued its Caribbean literacy outreach efforts with a shipment of children’s books, an assortment of educational materials, and school supplies to children at the Child Development and Guidance Centre (the “CDGC”) in Castries, Saint Lucia.

Caribbean nationals within the OECS will be able to move freely without restrictions as soon as August, 2011. According to information coming out of the last OECS meeting in St Vincent, all restrictions on the movement of people and labour will be lifted.

Saint Lucia’s Tourism Minister tells the 2011 graduating class of Monroe College, New York that St Lucia needs them. In his address spoke directly to those with St Lucian heritage, telling them "Come and help build and use your talent. Don’t waste your energy on what you cannot change, but use all of your energy to change the things you can.”

Around 1600, the Dutch established a fortified base at Vieux Fort, St Lucia, which led to the current French name. In 1605 another colony occurred as a result of a storm in which the ship "Olive Branch" was blown off course while on its way to Guyana and 67 English colonists waded ashore and settled on St. Lucia.

Obtaining a St Lucia Work Permit

The following guidelines are to enable you to become familiar with the procedures for the granting of a work permit in St. Lucia. This is based on the Government Statutory Rules and Orders No. 16 of 1975, including amendments. Please note that the approval or non approval of your application is determined by the Minister of Labour.

Please follow these guidelines:

Before you are issued an application form for a St. Lucia Work Permit, you are required to pay a nonrefundable fee of one hundred Eastern Caribbean dollars (EC$100.00) to the Accountant General at the Government Treasury in Castries. This payment is acceptable upon presentation of the necessary ‘A’ Form duly completed by the Work Permit Officer which is available at the Department of Labour Relations in Castries.

You will then take the completed ‘A’ Form and your payment of $100.00 to the Government Treasury. The Treasury Receipt which you will receive is required to obtain the Work Permit Application form. Take the Treasury Receipt back to the Work Permit Officer at the Department of Labour Relations who will then provide you with the Application form.

Once you are issued the Work Permit Application form, complete fully, and ensure that you have the following documents attached before it is submitted to the Work Permit Officer. These documents are:

1. A Police record from the country where you last resided;
2. Certified documentary proof of qualifications;
3. Trade Licence (where applicable);
4. Copies of advertisements for the post that you will be applying for;
5. Evidence that income tax has been paid.

Once your application has been approved, you are required to pay a fee for the Work Permit which is based on your nationality at present. The fee is guided according to the Government Statutory Instrument 2004, No. 38 dated June 1, 2004:

1. Citizens or persons belonging to any Caribbean Community or CARICOM member state, for every period of 12 months or part of if it for which the permit is valid - EC$2,000.00.
2. Citizens of persons belonging to any country other than a CARICOM member state (including Commonwealth Nationals and Foreign Nationals) for every period of 12 months or part of it for which the permit is valid - EC$7,500.00.
3. Citizens or persons belonging to any country (including CARICOM, Commonwealth Nationals, and Foreign Nationals) for a period not exceeding one (1) month for which the permit is valid - EC$400.00.

Once you have been made aware of the status of your application and the necessary fee, you will then make your payment to the Government Treasury. Once you are issued the Treasury Receipt, take it to the Work Permit Officer who will then present you with your approved work permit.

PLEASE TAKE NOTE:

If you are overseas, and would like to begin the process of obtaining a work permit, you will need to have someone in St. Lucia complete the ‘A’ Form and make the EC$100.00 payment on your behalf. The ‘A’ Form can not be mailed to you.

In order to maintain validity of your work permit, you will be required to repeat the same procedure for the following successive years until you decide to become a citizen of St. Lucia.

Anyone who has obtained residential status is NOT EXEMPTED from a work permit and is still required to apply as usual, in the same manner.

While your application is being processed, you should NOT be engaged in any kind of gainful or profitable employment.

All applications should be submitted to the Work Permit Officer at least two (2) months prior to the date which you propose or plan to be employed or engaged.

St Lucia Taxation and Fiscal Incentives

Changes are made to St. Lucian tax law each year and the incentives are generous in order to facilitate serious investment which will result in overall economic growth while improving the socio-economic well being of the residents of St. Lucia. The tax system described are general, however, you are encouraged to contact the members of the business community for up-to-date figures.

Corporate Income Tax:

St. Lucian companies ordinarily resident (both public and private) pay tax at a flat rate of 33.3% on income accruing in St. Lucia or elsewhere, whether received in St. Lucia or not.

St Lucia Income Tax - International Financial Services:

Companies licensed under the Registered Agent and Trustee Licensing Act pay a blanket rate between 50 - 100 percent on all profits.

St Lucia Property Tax:

Stamp duty is payable on the conveyance, transfer or sale of any immovable property. The purchaser pays 2 percent ad valorem and the vendor pays between 2.5 - 10 percent ad valorem, which is based on whether the individual or the entity is a citizen of St. Lucia, a registered company, or not.

St Lucia Hotel Tax:

A combined hotel occupancy tax of 18% which accounts for accommodation and service charge.

Import and Excise Duty:

This amount ranges from 0 - 100%

Personal Income Tax:

This amount ranges between 10 - 30% of taxable income.

St Lucia Fiscal Incentives

These are available to various categories and types of enterprises planning to invest, particularly in the tourism and manufacturing sectors. Incentives offered to an industrial investor may vary according to the value of the enterprise’s contribution to the local and regional economy; usually measured in terms of local value added. Whereas, an investor in the tourism sector is not subject to similar local value added requirements. Some of the incentives offered by the government, under three legislative Acts include:

1. Tax Holiday up to a maximum of fifteen years.
2. Exemptions from Income Tax, applicable to tourism investment operations.
3. Waiver of Import Duty and Consumption Tax on imported plant, machinery and equipment, raw and packing materials from outside CARICOM.
4. Tax relief on export earnings
5. Unrestricted repatriation of all Profits and Capital
6. Lower corporate taxes for investors in special development areas

St Lucians who wish to qualify for retuning resident status must meet the following conditions:

1. A citizen of St Lucia, eighteen years & above, returning to St Lucia to settle after a minimum of ten (10) years residence abroad.
2. A citizen of St Lucia by descent, who is eighteen years and above who will be settling in St Lucia after a minimum of ten years residence abroad; or
3. An alien spouse of St Lucian citizen by birth or descent, coming to St Lucia to settle, after a minimum of ten years residence abroad.

Persons who qualify for returning residents status are allowed the following benefits:

1. Bring in a container of personal goods duty free, typically home contents.
2. Import or purchase of a vehicle duty free; given that duty on most vehicles is over 100%, this represents a significant saving. Typically one would order a fairly expensive vehicle, as this is a one-off opportunity. Note that the purchased vehicle cannot be sold for 4 years.

Returning residents have six months from the time of registering to take advantage of the above benefits:

Concessions on Household and Personal Effects

Household and personal effects, whether new or used, adequate to furnish one’s family residence, will be allowed free of Customs Duties and Consumption Tax. The basic effects and the typical quantities are contained in the list below by room category.

Guidelines for Returning St Lucia Nationals are included below:

1. Concessions on Household and Personal Effects
2. Importation of Motor Vehicles
3. Clearing Your Motor Vehicle
4. Limitations of the Policy
5. Clearing Your Household and Personal Effects

Importation of Motor Vehicles

One (1) vehicle per person or family, will be allowed in free of taxes and duties provided:

1. That the vehicle does not exceed the cost, insurance & freight (CIF) value of US$15,000 and the returning national arrives accompanied by the vehicle, or
2. The vehicle arrives within 3 months before or after the arrival of the returning national, or
3. is purchased in Saint Lucia by the returning national within 3 months of the individual’s return to Saint Lucia.

Where the CIF value of a motor vehicle exceeds US$15,000, the excess customs duty shall be paid by the importer.

The returning national shall not sell, exchange or in any way dispose of the vehicle within 3 years of the date of importation.

Where a vehicle is disposed of within 3 years of importation as a result of an accident, the returning national may apply the balance of the duty-free period pro rated by the Comptroller of Customs, to the purchase of a replacement vehicle.

Tools of trade, instruments and pieces of equipment normally used in the pursuit of the declared profession or trade of the returning national, will be admitted free of taxes and duties.

Tools of trade do not include plant, machinery and heavy-duty vehicles.

The types and quantities of tools of trade shall be determined by the Comptroller of Customs.

Clearing Your Motor Vehicle

You will be required to provide evidence of ownership of the vehicle (Certificate of Title).

When the vehicle arrives, it is advisable that you employ the services of a Customs Broker to assist you in clearing it from the docks. The broker will inform you of the procedure and will do all the necessary paperwork for an agreed fee.

In arriving at a Customs value for the vehicle, the freight or shipping charge for the transportation of the vehicle to Saint Lucia will be considered.

Before clearing the vehicle one must obtain the necessary documents from the Customs Department, then pay your vehicle insurance and if possible, have it inspected on the docks by one of the approved inspections garages namely Freddy’s Garage, B&D Construction Garage, Spencer’s Garage and Mike’s-Fix-It Garage.

Limitations of the Policy

A service charge of 4% is charged on all new and used items.

A returning national who has returned to St Lucia during his 10 year absence and stayed for a continuous period of more than 6 months on the island on more than 2 occasions does not qualify for exemptions.

A returning national who during the 3 years following his return to Saint Lucia, returns abroad and resides there for a continuous period of more than 3 months loses the privileges of the policy and is liable to pay all taxes waived for him/her.

Personal and household effects should be brought in to Saint Lucia not more than 3 months after the national’s return.

An individual cannot benefit from the exemptions more than once.

Clearing Your Household and Personal Effects

To establish your eligibility to the concessions as a returning national, it is important that you submit to the Customs Department:

1. your passport; and or
2. other evidence to substantiate your residence abroad for at least 10 years

In order to avoid the payment of Customs duties on your household and personal effects, please ensure that you do not import any goods which are in excess of the quantities allowed.

When the Effects arrive in Saint Lucia, it is possible that they will be in a container. it is advisable that in packing them you make an inventory of all the items to present to the Customs at the time of clearance. if possible submit values for the items whether used or new. if you desire to have the container removed from the docks to your premises for examination, you must deposit with the Customs Department an amount equivalent to the normal duties on the goods.

The deposit is not required if the goods are removed from the container and placed in the Port Authority sheds pending Customs examination to determine your eligibility to the duty-free concessions.

For examination of the container at your private premises during or after normal workings, you are required to pay the following fee to the Comptroller of Customs:

Container not exceeding 20 feet – EC$155.00
Container exceeding 20 feet – EC$225.00

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