Trinidad and Tobago Corporate – Other taxes

Updated on July 18, 2022

Tax on the additional cost of goods and services (VAT)

A wide range of goods and services are subject to VAT. Commercial supplies are subject to a standard charge of 12.5%.

Crude oil, natural gas, and exporting goods and services are all zero-rated when it comes to tariffs.

Non-residents’ hotel and yachting services are not taxed.

There are exemptions for a number of services, including as financial services, real estate brokering, residential rentals, and educational services. Certain financial services, on the other hand, are subject to a 15% transaction tax. Capital-intensive manufacturers might avoid paying VAT on imported inputs.

TTD 500,000 is the 12-month VAT registration level for enterprises making commercial supplies.

Taxes on imports

In accordance with the Customs Act’s classification, various rates of customs duties are levied on imported and manufactured items.

The import value of the items is based on their CIF (cost, insurance, and freight) costs. Exemptions for specific commodities are available, though.

Taxes on goods and services

Certain produced items, such as tobacco, alcohol, and petroleum products, are subject to a variety of excise taxes.

Taxes on property

The property tax moratorium, which had been in effect since September 30, 2017, came to an end. Since the tax was reinstated, it has been impossible to collect due to errors in the assessment rolls and judicial challenges.

Property tax is levied on all land in Trinidad and Tobago.

All buildings, structures, machinery, plant, pipelines, cables, and fittings erected or installed on, in, over, under, or affixed to land are covered under the Property Taxes Act (PTA). According to the PTA, the method for determining the amount of tax owed is as follows:

It is the Commissioner of Valuations’ responsibility to determine the property’s annual rental value (ARV).

When a rental value isn’t readily available, the ARV is calculated using the property’s capital cost, which is then converted as follows:

3.5% of the market is residential.

The commercial rate is 5%.

Percentage: Industrial: 5.

3 percent of machinery and equipment is not housed in a building.

If the Board of Inland Revenue (BIR) thinks fit, it will subtract 10% of the ARV for voids or loss of rent from the ATV to arrive at the annual taxable value (ATV).

It is then applied to the ATV in accordance with this formula;

1% of the land is used for farming.

3 percent of all property is residential.

Commercial property: 5% of the total.

Housed industrial machinery and plant: 6 percent.

3 percent of machinery and equipment is not housed in a building.

In the United States, stamp taxes

Instruments of all kinds are subject to stamp duty (e.g. deeds of conveyance, mortgages, debentures, trust deeds, leases, insurance policies, annuity policies, agreements, share transfers). TTD 25 for trust deeds to up to 10% of market value for property conveyances are examples of stamp duty rates.

Taxes collected from employees’ wages

Pay-as-you-earn (PAYE) requires an employer to deduct income tax from wages provided to employees. The term “emoluments” is broadly defined to include all forms of compensation, including salaries, wages, overtime, bonuses, pay, perquisites, lodging, stipends, commissions, and pensions.

Contributions to the Social Security system

National Insurance, a form of social security levy, is deducted at various rates from employees’ paychecks.

Employers are required to pay TTD 276.20 and employees are required to pay TTD 138.10 for a weekly maximum of TTD 414.30 for monthly incomes exceeding TTD 13,600.

In addition, a health fee is deducted at the point of sale. For every week worked, you’re only liable up to TTD 8.25.

Taxes imposed on lodging at a hotel

Ten percent of the total cost of lodging is taxed as a hotel accommodation tax.

Payment of premiums is subject to tax.

General insurance premiums have been taxed at a rate of 6%. There is no tax on premiums paid for life insurance and reinsurance.