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

Taxation
The taxation regime in Trinidad & Tobago comprises
a variety of taxes including both direct and indirect
taxes.
Please note that the information contained herein may
quickly become outdated. Persons contemplating
doing business in Trinidad and Tobago should seek
legal advice with regard to proposed or contemplated
ventures.
In Trinidad & Tobago, the principal direct taxes are:
Corporation Tax: A tax rate of 25% on profits and
short term gains of companies accruing in Trinidad
& Tobago and includes a business levy (Corporation
Tax Act).
Income Tax: A tax of 25% on chargeable income of
individuals accruing in Trinidad & Tobago.
Unemployment Levy: A tax at the rate of 5% on the
profits of companies subject to the Petroleum Taxes
Act. (Unemployment Levy Act).
Business Levy: A tax on gross revenue at rate of
0.2% payable quarterly. Final liability is offset by corporation
tax payable at year-end.
Green Fund Levy: A tax on gross revenue at the rate
of 0.1% payable quarterly.
Health Surcharge: A tax levied at two rates based
on income.
Petroleum Profits Tax: A tax at the rate of 50% on the
profits earned by businesses in the course of petroleum
operations falling under the Petroleum Taxes Act.
Supplemental Petroleum Tax: A tax charged on
the gross income of companies liable to petroleum
profits tax based on the price of oil.
Lands and Buildings Taxes: A tax based on the
assessed value of lands and buildings. (Stamp Duty
Act).
Withholding Taxes: A tax based on various income
payments to non-residents. (Double Taxation Treaties).
The principal indirect taxes are:
Value Added Tax (VAT): A tax levied on imports and
on the value of supplies of goods and services. (VAT
Act).
Customs and Excise Duties: A tax on imports and
manufactured goods. (Customs Act).
Import Surcharge: A tax on imports.
Stamp Duty: A tax on instruments such as deeds of
lease, conveyances, mortgages and share transfers.
(Stamp Duty Act).
Financial Services Tax: A tax at the rate of 15% on
financial transactions with banks and other financial
institutions.
Motor Vehicles Tax: A tax levied on the sale of motor
vehicles.
Income Tax - Corporations
Under the Corporation Tax Act, “corporations” or
“companies” (including those incorporated outside of
Trinidad and Tobago which have registered under the
Companies Act) encompass unincorporated associations,
but not partnerships.
Filing of Tax Returns
In respect of Corporation Tax / Petroleum Profits Tax
returns, filing dates are 30th April each year; the returns
must be filed with the Board of Inland Revenue
at any of its offices.
The Taxes and Payment
Corporation Tax, Business Levy and Green Fund
Levy. Estimated taxes based on the previous year’s
profits are payable by quarterly installments on 31st
March, 30th June, 30th September, 31st December
and the remainder on or before 30th April in the next
year. In other cases, taxes are payable thirty (30) days
after receipt of a notice of assessment.
Taxation of Non-Resident Companies
A non-resident company is liable to corporation tax
on income arising or derived from any trade or business
carried on by it in Trinidad and Tobago. Additionally
withholding tax is levied on (a) remittances in
respect of Trinidad source income of a non trading
nature earned by non-resident companies and (b)
profits of branches of non resident companies (after
making deductions for corporation tax) which are not
re-invested (other than in replacement of fixed assets)
to the satisfaction of the Revenue. A corporation is
considered to be resident where its “mind or management”
is ordinarily situated.
A Guide to Investing in Trinidad and Tobago (2011) 83
Section 11