Trinidad and Tobago 2012 - invesTT

A GUIDE TO INVESTING IN TRINIDAD AND TOBAGO (2012)
Section 11
Joint ventures are not taxed as separate entities. A corporate joint
venture is a company and is taxed as such. Foundations set up as
companies and associations are taxed as Corporations/Companies
under the Corporation Tax Act. Some foundations are set up as
trusts in which case the Trustee is charged to tax on the income.
Most foundations are set up for charitable purposes in which case
they may obtain exemption from corporation tax on income which
does not arise from trade or business.
The relevant material on corporations and individuals apply.
Income Tax - Individuals
An income tax return is required to be filed on or before 30th
April each year. The returns must be filed with the Board of Inland
Revenue at any one of its offices. Employees with income arising
only from employment are not required to file a return.
Payment of Taxes
In respect of the self-employed, these are payable quarterly on 31st
March, 30th June, 30th September, 31st December, and on or before
30th April (the following year). In other cases, the tax is payable up
to thirty (30) days after receipt of a notice of assessment. The tax
is estimated on the previous year’s profits. In respect of employees,
tax is deducted monthly from the employment income under the
Pay-As-You-Earn (PAYE) regulations.
Applicable Rates
Tax at the rate of 25% on chargeable income is applicable to an
individual.
Sources for Computing Tax
Income from sources derived in or accruing in Trinidad & Tobago
or elsewhere and whether received in Trinidad & Tobago or not in
respect of gains and profits from: farming, fishing, operation of
mines or other natural resources, trade or business, professions,
vocations or managerial charges, employment, rents, royalties,
interests, discounts, annual payments, fees, commissions,
distributions, short term capital gains.
Deductible Expenses
All expenses wholly and exclusively incurred in the production of
income are allowed. Where the source of the income is employment
income the only expenses allowed are travelling necessarily incurred
in the performance of the duties and trade union dues. Major
expenses not deductible are expenses from employment except
for travelling, capital expenses, domestic and private expenses and
certain payments to non-residents (unless withholding taxes have
been accounted for and paid over to the Board of Inland Revenue).
The following are some of the exemptions allowed under the
Income Tax Act:
• Income from scholarship or bursary
• Dividends from resident companies (except preference
dividends)
• Income of a resident where the total income does not exceed
$60,000.00 for a year of income
• Government gratuities to former monthly paid employees
• Pensions under the National Insurance Act
• Interest from savings accounts accruing to resident individuals
on savings accounts or on bonds or other similar investment
instruments
• Certain annuities purchased by persons who have reached
age sixty (60)
121