Trinidad and Tobago
Finance Act No. 23 of 2019 as assented to on 17 December 2019, and the following amendments are effective January 1, 2020 (save for the one pertaining to insurance companies which will become effective upon proclamation by the President) were made:
The Corporation Tax Act was amended to allow first time exporters to CARICOM countries as listed in the Sixth Schedule, to claim 150% of promotional costs incurred on exportation of goods, agricultural products and services.
The Corporation Tax Act was amended to increase the allowances of 150% of expense incurred up to a maximum of TT$6m, with regard to the following: art and culture, sporting, audio/ visual/ video production, production company and fashion. The maximum was previously TT$3m.
The Miscellaneous Taxes Act was amended to impose the environmental tyre tax on all imported tyres. The tax previously only applied to the importation of used tyres.
The Income Tax Act was amended to restrict the use of the tax losses carried forward by petroleum production companies to 75% of the otherwise chargeable profits. There was previously no restriction.
The Petroleum Taxes Act was amended to increase the Supplemental Petroleum Tax (SPT) investment tax credit in respect of capital expenditure incurred on approved development activity in Mature marine/land oil fields and Enhanced Oil Recovery Projects from 20% to 25%.
The Income Tax (In Aid of Industry) Act amended the capital allowances for both tangible and intangible capital expenditure to Straight-line basis over five years (20% per annum). The allowance was previously year 1 - Initial Allowance 50%; year 2 - Allowance 30% of expenditure incurred and Year 3 - Allowance 20% of expenditure incurred.
The Fourth Schedule of the Corporation Tax Act was amended to impose Corporation Tax no longer on the investment income generated form the statutory fund but on the assets supporting the company’s liabilities to T&T policyholders.