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

Territorial Rules
An individual is taxable in respect of income accruing
in or derived from Trinidad and Tobago. The resident
individual is subject to tax on his world income.
In the case of income arising outside of Trinidad and
Tobago to persons who are not ordinarily resident or
not domiciled in Trinidad and Tobago, tax is payable
on the amount received in Trinidad & Tobago; but
where the employment or office of such person is exercised
in Trinidad and Tobago, gains or profits from
such employment are taxed in Trinidad and Tobago
whether received in Trinidad and Tobago or not.
Taxation of Employment Income
Salary and emoluments are subject to a withholding
called Pay-As-You-Earn (PAYE), which is deducted
by the employer at time of payment. Salaries of nonresidents
also attract PAYE. The section assumes
that the employer is a resident or has a tax presence
in Trinidad and Tobago, which makes him subject to
the jurisdiction of the Act. The normal withholding tax
provisions referred to above do not apply to salary
and emoluments.
Other Matters Impacting Employment Income
Pension fund plans, individual retirement plans, savings
plans and profit-sharing plans, which are not approved
by the Board of Inland Revenue, do not legally
secure employee tax benefits.
86 A Guide to Investing in Trinidad and Tobago (2011)
An individual may claim up to TT$30,000 in the aggregate
as deductions in respect of pensions and /
or deferred annuities and National Insurance contributions.
Interest on investment loans, subject to exceptions,
is a deductible expense (in ascertaining an
individual’s taxable income). Interest on a loan taken
to acquire shares in companies quoted on the Stock
Exchange is not an allowable deduction.
A person who became a first time homeowner between
the period January 1, 2003 and December 31,
2005 is entitled to an allowance of TT$10,000.00 per
year for the first five (5) years commencing from the
year in which the house was acquired.
Obtaining An Income Tax File Number
An Income Tax File Number is obtained through the
Board of Inland Revenue (BIR), which falls under the
Ministry of Finance. This number is used to submit
income tax payments, as well as health surcharge
payments. An Application for BIR Number Form must
be completed and accompanied by a listing of individual
directors’ names, addresses and personal BIR
income tax numbers, and the original (plus a copy) of
Certificate of Incorporation for the said company. All
employees of the company must submit health surcharge
payments. The numbers used for such payments
are their income tax file numbers.
Other Taxes
VAT
Value Added Tax (VAT) is essentially a consumption
tax that was introduced in Trinidad and Tobago on
January 1, 1990. This is a tax levied at the rate of 15%
on the value of imports and the value of supplies of
goods and services. The value of goods imported into
Trinidad and Tobago is the total of:
• the value of the goods determined according to
the Customs Act (c.i.f.), together with any duties,
taxes (other than VAT) and other charges
that are charged, paid or payable upon entry of
imported goods. There are special provisions for
re-imports.
VAT administration is the responsibility of the Board of
Inland Revenue, VAT Administration Centre. Collection
of VAT on imports is the responsibility of the Customs
and Excise Division of the Ministry of Finance.
Under the Value Added Tax Act, 1989, most businesses
are required to:
• Register with the VAT Administration Centre of
the Board of Inland Revenue.
• Collect Tax at 15% on nearly all the goods and
prescribed services they supply, unless zero-rated
or exempt.
• File a VAT return and remit the net VAT collected
to the VAT Administration Centre, usually every
two (2) months on or before the 25th day of the
month following the collection/return period.
Who Registers?
Any sole proprietor, company, partnership, joint venture
and other unincorporated body who conducts a
business activity and, who makes commercial supplies
within Trinidad and Tobago with a gross value
in excess of TT$200,000 in any 12-month period, is
required to apply for VAT registration. VAT returns are
due every two (2) months (6 times per annum) and
must be submitted within eight (8) days of the due
date. The difference between output tax and input tax
is payable or refundable.
Under certain circumstances a supplier who is not
resident in Trinidad and Tobago has the option to
decide whether the supply of goods and services is