Contract tax is levied on income earned from a contractor. A contractor is anyone who is a resident of Saint Lucia who provides or supplies independent personal services in exchange for compensation. A contractor is not considered an employee and is also not any of the following:
- accountants, auditors or tax consultants
- business or management consultants
- doctors, dentists, pharmacists or nurses
- funeral undertaking services
Contract tax is levied on payments made to a contractor either directly or indirectly through a financial institution for the supply of labour or for the hiring of equipment.