Saint Lucia’s pensioners are being reminded that they can collect their retirement income free of tax – no matter the amount, no matter the source. The exemption, introduced at the start of 2025, marks a break from the old system that often left retirees paying taxes on modest pensions.
The reassurance follows reports of confusion, as some retirees continued to remit taxes in 2025. As a result, the Inland Revenue Department is urging affected individuals to file their returns so that any overpayments can be assessed and refunded.
During an interview, Acting Comptroller of the Inland Revenue Department, Felicia Ellie, asked pensioners to file their 2025 returns by the due date of March 31, 2026, “so… we are able to look at whether…there were any overpayments… so that those individuals can be refunded”.
While pension income itself no longer requires filing, Ellie clarified that this does not apply to pensioners who earn other forms of income. “We also acknowledge that pensioners have other income,” she said, pointing out that some may receive rental income or continue working. In such cases, “they would still be obligated to file their income tax returns with that other income, declaring that other income while the pension income is exempt”.
Income earned by a resident individual who is a citizen of Saint Lucia and has attained the age of 60, excluding pension income, is exempt from income tax up to a maximum of $6,000 per year.
She urged taxpayers to make greater use of the department’s electronic filing system. “We have the e-filing platform that we are really encouraging persons to utilise,” she stated, warning that heavy traffic close to the deadline often causes system delays. “At the end, maybe in the last week, there’s a rush… and sometimes it causes a delay. It causes an interruption to the e-filing system.”
Ellie also encouraged users to check their access details well in advance, noting that many taxpayers encounter problems with passwords or usernames just days before the deadline. “It’s not too early to start it. It’s not too early to do the inquiries,” she said, advising those who experience difficulties to contact the department early.
In addition, employers were reminded of their responsibility to submit annual returns promptly and accurately. Ellie stressed the importance of completing all required information to avoid forms being returned. Employers are being asked to submit their documentation by the stipulated deadline and as early as possible.
Addressing ongoing public concern about tax refunds, Ellie reassured taxpayers that refunds are guaranteed once properly assessed. “The refund is yours. If you have a refund, you file your taxes, you will be paid,” she reassured.
However, she cautioned that immediate payment is not always possible due to the volume of requests and the processing procedures involved. “There is a process that has to be done. There is the sheer number of requests that we receive,” Ellie explained, while asking for continued patience from the public.
She dismissed the notion that taxpayers must write formally to receive their refunds. “You do not have to write to receive your refund, because, again, that is yours,” she said, adding that the high volume of written requests can itself slow down processing.
She also encouraged employers, pension administrators and payroll officers to ensure that payroll systems and tax deductions are updated to reflect these exemptions.
As the department continues to manage filings and refunds, Ellie reiterated that early compliance and the use of e-filing services remain the most effective way for taxpayers.
