– This amendment is intended to provide financial relief to pensioners and beneficiaries of certain social security payments.
The Inland Revenue Department (IRD) is pleased to inform taxpayers of the new Income Tax Exemption following the enactment of the Income Tax (Exemption) (No. 4) Order, 2025, Statutory Instrument No. 225 of 2025. The Order was made under section 25(2) of the Income Tax Act, Cap. 15.02, and has an effective date of 1st January, 2025.
This amendment is intended to provide financial relief to pensioners and beneficiaries of certain social security payments.
Key Provisions of the Order
Under the new measures, the following income is exempt from income tax:
Pension Income
- Pensions payable by the Government or an approved pension fund.
- Pensions payable by a non-approved pension fund or directly by an employer (conditions apply)
Earned Income of Senior Citizens
- Income earned by a resident individual who is a citizen of Saint Lucia and has attained the age of sixty (60) years excluding pension income is exempt from income tax up to a maximum of $6000 per year.
Felicia Ellie, Acting Comptroller of the Inland Revenue Department, is encouraging employers, pension administrators, and payroll officers to ensure that payroll systems and tax deductions are updated to reflect these exemptions.
Pensioners with additional income (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.
For further information or clarification, please contact the IRD at: 468-4700 or email [email protected]