Trinidad and Tobago
Corporate residence is determined by reference to the location of the central management and control of the business of a company.
Permanent establishment (PE)
A non-resident company is subject to corporation tax on its income derived from trading within Trinidad and Tobago. A company is deemed to be engaged in or carrying on trade or business in Trinidad and Tobago if it has an office or place of business or has a branch or agency within Trinidad and Tobago. The local legislation does not make any reference to the term ‘permanent establishment’; however, this term is used generally in the treaty context. Subject to the terms of specific double taxation treaties (DTTs), a non-resident company will have a PE in Trinidad and Tobago where:
- it has a fixed place of business in Trinidad and Tobago through which the business of the company is wholly or partly carried on, or
- it has an agent acting on behalf of the company and that agent has the authority to bind the company.
The term ‘fixed place of business’ has been generally defined to include a place of management, a branch, office, factory, a workshop, an installation or structure for the exploration of natural resources, or a building, construction, or installation project.
Most treaties outline circumstances under which a company will not be deemed to have a PE, and these include where the activities of the company are merely of a preparatory or auxiliary nature.