A Guide to Investing in Trinidad and Tobago (2011) - Ministry of ...

tion where necessary. Once approved, the applying
entity will be required to submit a list of items to be imported
with quantities and tariff numbers on an Import
Licence application form to the Trade Licence Unit of
the Ministry. The list must contain only items approved
for the manufacture of the approved product.
Fiscal Incentives Act
The Fiscal Incentives Act allows the granting of benefits
to an investor for periods up to ten (10) years for
the manufacture of approved products by approved
enterprises.
Approved enterprises fall into separate classifications
including:
• Capital intensive enterprises investing in excess
of TT$50 million (US$7.8 million).
• Export enclaves, where products are manufactured
exclusively for export.
• Enterprises using a significant portion of local inputs.
These concessions are discretionary and require applications
to the Ministry of Trade and Industry. Precedents
include the grant of five-year tax holidays to
major petrochemical plants in Point Lisas.
48 A Guide to Investing in Trinidad and Tobago (2011)
An approved enterprise will also be granted exemption
from customs duties and VAT on the construction
of the approved project. These projects have usually
been large-scale manufacturing within one (1) of the
three (3) classifications, and are available only to locally
incorporated companies. The tax exemption can
be extended to dividends which may be tax exempt
and free of non-resident withholding tax on any taxes
in excess of the investor’s tax rate on the dividend in
his country of residence.
Tax Holiday – Tourism Development Act
Under the Tourism Development Act, the owner/ operator
of the approved hotel is eligible for:
• Tax holidays for a period not exceeding seven (7)
years.
• Tax exemption on profits derived from the initial
sale of a villa, condominium or the site of a villa
or condominium that forms part of an Integrated
Resort Development which is an approved tourism
project.
• Carry over of losses arising out of the operation
or renting of an approved tourism project during
the tax exemption period. These may be set off
against future profits of the operator or owner.
• Customs and Excise Duty Exemption on building
materials not otherwise exempt, and articles of
hotel equipment to be used exclusively in connection
with construction and equipping of a
hotel project - though value added tax remains
applicable.
• Customs Duty at the rate of 10% on the importation
of vehicles where a licence is obtained under
the Tourism Act.
• Tax exemption on interest received on an approved
loan for an approved tourism project for
the period of the loan or seven (7) years, whichever
is the lesser.
• Accelerated depreciation of depreciable equipment
owned by the owner or operator and used
in an approved project.
• Capital allowance in respect of approved capital
expenditure incurred by the owner or operator in
the creation of a new tourism project or expansion
of an existing tourism project.
• Income tax exemption on dividends accruing to
the owner/or operator; where a dividend is paid
to a non-resident the exemption is limited to the
extent that the tax payable in Trinidad and Tobago
exceeds the tax payable in his country of
residence.
Tax concessions are granted on a discretionary basis
by the Ministry of Culture and Tourism based on the
size of the hotel and the capital expenditures involved.
Free Zones
Free Zone incentives have been developed in Trinidad
and Tobago to promote the establishment of companies
in Trinidad and Tobago that export the majority
of their goods and services. Free Zone companies
generally produce large volumes of goods or services
and carry the potential for job creation in the country.
Enterprises are approved by the Free Zones Company
to operate in areas designated as free zones. The
criteria for approval include:
• A company incorporated or registered in Trinidad
and Tobago
• Potential for job creation
• New investment initiative
• Contributions to the development of workforce
skills
• Access to overseas markets