Saint Lucia IFC – Update:

Overview of Proposed IBC Act amendments 2019

Some of the key effects of the IBC Act amendments which were debated in Parliament on 20
November 2018 (together with the contemporaneous amendments to be made to the Income Tax
Act) will be as follows:

• IBC incorporations under current law will cease as of November 30, 2018. IBC incorporations
  when the amendments take effect will resume on the first working day of January 2019.

IBCs incorporated pre-1 December 2018 continue to be subject to the current law until 30 June 2021.

IBCs incorporated post 2018:

•  Registered Agents to file a statutory declaration with incorporation documents. Template for
  Memorandum and Articles to change.
• Defined as “resident” under the Income Tax Act.
• Will be required to file annual tax returns file based on unaudited financial statements.
• Can no longer elect to be exempt from tax or to pay tax at 1%. All post 2018 IBCs subject to
  tax under the revised Income Tax Act.
• Will not be restricted from doing business with residents and may own immovable property.
• Will be subject to Aliens (Licensing) Act. After June 30, 2021 all IBCS incorporated prior to December 1, 2018 with majority ‘alien’ shareholders or directors and which hold majority
  shares in companies owning immovable property in Saint Lucia will need to be aware of the
  likelihood of forfeiture for breach under the Aliens Act. Licences or exemptions under the

Aliens Act may need to be applied for.

• Exemptions from withholding taxes have been modified.
• Stamp duty on transfer of shares and other property may apply but exemption available
  provided some conditions are met. Stamp duty exemption allowed only if “the transfers of
  shares and other property …. does not have the legal effect of changing the beneficial
  ownership of property in Saint Lucia”. This means that all IBC charges, mortgages, transfers
  etc which are to be filed will need to be assessed by the IRD and stamped as appropriate
  whether or not the IBC chooses to file the charges etc. in the IBC Registry.

Beneficial Owner

• Definition of Beneficial Owner (BO) added.
• IBCs required to file BO information with Registered Agent annually. IBCs also required to file
  change of BO with Registered Agent within reasonable period.
• Register of BO to be kept at office of Registered Agent.
• RA to report failure to provide BO information to Registrar similar to default reporting for
  Shareholders/Directors/Financial statements.

International Trusts and International Partnerships –

• No trusts or partnerships can be registered post 2018. Legislation for a new trust regime will
  be enacted in due course. Current entities will be grandfathered up to June 30,2021.