Pensioners across Saint Lucia are set to benefit from increased financial relief following the Government’s implementation of measures aimed at reducing income burdens for retirees, with pension income now officially exempt from taxation. This follows the coming into force of Statutory Instrument No. 225 of 2025.
Acting Comptroller of the Inland Revenue Department, Felicia Ellie, confirmed that the exemption applies broadly and is not limited by the source of the pension.
“So anyone who is earning pension income, that income is exempt,” Ellie explained. “The pension can come from any source. It can be from the government or an approved pension fund. It can be from even a non-approved pension fund or an employer. In essence, pension income, effective [as] of January 2026, became exempt.”
The Inland Revenue Department has also acknowledged that some pensioners may have already paid taxes on their pension income during 2025, before the exemption took effect. As a result, retirees are being encouraged to submit their income tax returns to determine whether they are eligible for refunds.
“We would acknowledge that some pensioners may have paid taxes on the pension that they would have earned in 2025,” Ellie stated.
“So on our end as a department, we are asking at least those pensioners to do their filing, especially for the year 2025, by the due date which is the 31st of March, 2026, so that at least we can look at whether in their case there were any overpayments and so forth so that those individuals can be refunded.”
Ellie also clarified that pensioners who receive only pension income are not required to file tax returns. “For pension income, no, they would not. There’s not really an obligation to do that filing,” she said.
However, she stressed that retirees who earn additional income remain subject to standard filing requirements.
“We also acknowledge that pensioners have other income. So they may be receiving pension income, but they may have rental income, they may have another job,” Ellie explained. “So for that, we just want to make it clear that they would still be obligated to file their income tax returns with that other income.”
While pension income itself is exempt, Ellie reiterated that any non exempt earnings must continue to be declared annually. The Inland Revenue Department says the measure reflects the Government’s broader commitment to improving financial security and easing the cost of living for Saint Lucia’s retired population.