Trinidad and Tobago

A Trinidad and Tobago resident corporation is taxed on worldwide income. A non-resident company engaged in business in Trinidad and Tobago is taxed only on income directly or indirectly accruing in or derived from Trinidad and Tobago.

The standard corporation tax rate is 30%, but this varies in the case of certain classes of companies. The current corporation tax rates are as follows:

Business levy

Corporations are subject to a business levy at the rate of 0.6% of gross revenue or receipts where the levy exceeds the corporation tax liability. Exemption is available for certain companies, including petroleum companies and companies whose annual turnover is less than TTD 360,000. The levy is a non-deductible expense for corporation tax purposes.

The business levy rates for small and medium enterprise (SME) companies listed on the Trinidad and Tobago Stock Exchange, within the first ten years from listing on such stock exchange, are broken down and calculated into five-year periods as follows:

• 0% for the first five years from listing.
• 50% of the rate of the business levy for the next five years immediately following the previous period and thereafter at the standard rate.

Green fund levy

A green fund levy of 0.3% on gross income is applicable to companies and partnerships doing business in Trinidad and Tobago. This levy is payable quarterly and is neither a deduction in computing chargeable income nor a credit against corporation tax due.

The green fund levy for SME companies listed on the Trinidad and Tobago Stock Exchange shall be calculated as follows:

• 0% for the first five years from listing.
• 50% of the rate of the green fund levy for the next five years immediately following the previous period and thereafter at the standard rate.

Unemployment levy

Only petroleum companies remain liable to the unemployment levy, at the rate of 5% of taxable profits. No set-off for prior-year losses is permitted in computing the liability.

Supplementary petroleum tax (SPT)

SPT is chargeable on the gross income (derived from the sale of crude oil) less royalties and overriding royalties paid on the crude oil sold. The tax is computed separately in respect of land and marine operations and is a quarterly tax based on the actual gross income for each quarter.

The SPT is deductible in arriving at profits subject to petroleum profits tax.