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

the contribution is considered an operating expense
and is tax deductible in its entirety. The employee
claims 70% of his share of the contribution as a tax
relief. There is at present, no compulsory scheme of
contributions for the self-employed.
Contributions that are payable by an employer in respect
of employment injury coverage for an employed
person who has not yet attained the age of 16 years
or who has attained the age of 65 years, shall be as
set as in Class Z and for an unpaid apprentice the rate
shall be $1.00 per week.
The employer of a recipient of a retirement pension
shall be required to pay contributions on behalf of the
recipient in Class Z so as to cover him for payment
of injury benefit for the duration of his employment.
Employers of persons between the ages of 60 to 65
who have received a retirement grant are required to
deduct normal contributions (i.e. not Class Z) until the
week before the employees’ 65th birthday.
Contributions Effective 7th January 2008
Registration Duties
Registration duties are imposed under a national regime.
Documents are filed with, and fees paid to, the
Registrar of Companies.
• Registration duties upon the incorporation of
a local company - TT$655.00 (approximately
US$109.00)
• Registration of a branch of an overseas company
- TT$2,220 (approx. US$367)
Other Matters
Arts Allowance
This allowance up to a maximum of $450,000.00 is
available to companies who sponsor artistic work. To
qualify a company must incur expenditure in respect
of an artistic work. Artistic work means any work of
art, whether visual or performing. If a visual work of
art, the deduction may only be claimed in respect of
the initial acquisition of the work. The work must be
done by a national of Trinidad and Tobago and its value
certified by an art gallery. In respect of a performing
90 A Guide to Investing in Trinidad and Tobago (2011)
art, the deduction would also only apply if the work is
done by a Trinidad and Tobago national and the artist
must be registered with the ministry responsible for
culture or with the Tobago House of Assembly.
Sport Allowance
A company which promotes or sponsors sporting activities,
events or sportsmen is entitled to claim an allowance
in ascertaining their chargeable profits for that
income year of the actual expenditure to a maximum
of $450,000. To qualify for the allowance in relation to
sponsorship of a sportsman, that sportsman must be
a Trinidad and Tobago national. There is also express
guidance as to what is considered “sporting activities
or events”. Such activities or events include athletics,
badminton, basketball, boxing (amateur) martial
arts, wrestling, cricket, cycling, model aeroplane flying,
football, rugby, golf, hockey, netball, baseball,
polo, swimming, tennis, weightlifting and yachting.
The Act also allows the minister with responsibility for
sports the discretion to prescribe any other activities
or events to be covered by the allowance. The list is
fairly exhaustive and the allowance will hopefully act
as an incentive to companies to sponsor many worthwhile
events and enterprising sportsmen.
Audio, Visual, Video Production Allowance
This allowance provides for companies that sponsor
audio, visual, or video production. To claim such an
allowance the production must be for the purpose of
local education or local entertainment. The production
could also be reflective of local culture for radio
or television. The allowance claimable on a deduction
is the actual expenditure incurred to a maximum of
$450,000 for each year of income.
Note: A company is limited to an aggregate allowance
of $450,000.00 in respect of the allowance available
for artistic work, sports, and audio, visual, and video
production.
Capital Allowances
These allowances are available to all companies in-
volved in manufacturing trade. Manufacturing trade
means any activity involving the mechanical, physical
or chemical transformation of materials, substances,
or components into new products. It does not include
the printing and publicizing of newspapers and
other such documents by proprietors.