18/01/2024

IRD releases new income tax return form

By GIS

The Inland Revenue Department released a new income tax return form in January 2024, that will be used to file 2023 income tax returns. The changes to the form include an increase in the personal tax allowance from $18,000 to $25,000 with claims (excluding medical) now capped at $30,000.

Comptroller of the Inland Revenue Department (IRD), Mrs. Marcia Vitae, elucidated on the changes.

“The most important change is the personal income tax allowance which has changed from $18,000 to $25,000. The front of the return is the same. The changes also include a $30,000 cap on all of your allowances like mortgages, claims for children, etcetera. These changes are highlighted in the Tax Facts and Calculations booklet. The $30,000 cap does not include any medical allowances. Once you collect all of your medical bills you will calculate them and put in the figure on your return. This will not be part of the $30,000 cap. Providing medical bills will not be necessary. You keep them unless an officer asks you to provide these bills.”

Citizens who invested in solar and photovoltaic energy systems can also make full claims on their investments. It is the first time citizens can claim for money spent on transitioning to renewable forms of energy.

“Another important change to the form is the claim for photovoltaic systems,” Mrs. Vitae continued. “This has not been part of claims in the past, so this is new for the 2023 filing. Therefore, if you decided to change your electrical system to solar, then that will part of your allowances and the $30, 000 cap.”

Also noteworthy is the reduction on the number of tax bands from four to three. Comptroller Vitae explains this relates directly to how one calculates their taxes.

“Very important now is how you calculate your taxes. The tax bands in the past were four. It has been changed to three. So the band from $0 to 15,000 is at 15 percent. The band from $15, 001 to $30,000 at 20 percent, and anything above $30, 000 is at 30 percent.

“I know it is a lot to take in so we continue to have tax officers available to assist you with filing your returns. Our offices are located at the Castries Waterfront, Bridge Street, in Vieux Fort and in Soufriere. We also utilize our property tax offices as well located at Sunny Acres, so if you need to have an in person conversation, feel free to come in.”

Customers can also visit www.irdstlucia.gov.lc, email [email protected], or file personal income tax returns online. The filing deadline for income year 2023 is March 31, 2024.

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