Trinidad and Tobago

Corporate - Significant developments

Last reviewed - 03 August 2021

Finance Act 2020 was assented to on 24 December 2020, and the following amendments are effective 1 January 2021:

  • The capital allowances (wear and tear) rate for plant and machinery classified under Class B of the Seventh Schedule of the Income Tax Act was increased from 25% to 30%.
  • The corporation tax rate for small and medium enterprise (SME) companies listed on the Trinidad and Tobago Stock Exchange was reduced to 0% for the first five years and to 15% for the next five years.
  • The Corporation Tax Act was amended to allow for the deduction of contributions to a catastrophe reserve fund by insurance companies.
  • The corporate tax allowances for arts and culture, sporting activities or events, audio, visual, or video productions, production companies and the fashion industry were increased from 6 million to 12 million Trinidad and Tobago dollars (TTD).
  • The introduction of a new corporate tax allowance equal to 150% of the actual expenditure incurred, up to a maximum of TTD 3 million, in relation to expenditure incurred in investing in a tech start-up or a new-tech business.
  • The introduction of a new corporate tax allowance equal to 150% of the actual expenditure incurred, up to a maximum of TTD 3 million, where a company incurs expenditure in engaging in technology solutions and digitisation.
  • The introduction of a new corporate tax allowance equal to 150% of the actual expenditure incurred, up to a maximum of TTD 3 million, where a company incurs expenditure in creating employment in a technology industry where the employees comprise a majority of young people.
  • Approved property development companies can claim a deduction for capital expenditure incurred in the construction of a building for commercial or industrial usage.
  • Supplemental petroleum tax (SPT) rates were introduced for income years 2021 and 2022 for small onshore producers.
  • Schedule 2 of the Value Added Tax Act was amended to include laptop computers, notebook computers, tablet computers, mobile and digital equipment, cell phones, software, accessories, and peripherals as zero-rated items.
  • All laptop computers, notebook computers, tablet computers, mobile and digital equipment, cell phones, software, accessories, and peripherals are now exempt from online purchase tax.
  • Mobile and digital equipment, cell phones, software, accessories, and peripherals are now exempt from customs duties.