Trinidad and Tobago

Corporate - Income determination

Last reviewed - 04 February 2020

Inventory valuation

Inventories are generally stated at the lower of cost or market value. Cost may be determined by the first in first out (FIFO) or the average cost method. The last in first out (LIFO) and base stock methods are not generally accepted for tax purposes.

Capital gains

Gains on the disposal of chargeable assets within 12 months of acquisition are subject to tax at standard corporation tax rates. Capital gains are not otherwise taxable, except for the application of the balancing allowance on depreciable assets. See Depreciation in the Deductions section for capital gains information on the sale of tax-depreciable assets.

Dividend income

Dividends received by a Trinidad and Tobago company from both domestic subsidiaries and other domestic corporations are exempt from corporation tax and business levy but are subject to green fund levy.

Stock dividends

A Trinidad and Tobago corporation can distribute a dividend of common stock (bonus issue) proportionately to all resident common stockholders on a tax-free basis.

Interest income

Interest income received by a Trinidad and Tobago company is generally taxable.

Royalty income

Royalty income received by a Trinidad and Tobago company is generally taxable.

Foreign income

A company resident in Trinidad and Tobago is subject to tax on its worldwide income. There is no deferral regime in Trinidad and Tobago.