Trinidad and Tobago

Individual - Income determination

Last reviewed - 09 July 2020

Employment income

A resident individual engaged in employment is assessable to tax on one's worldwide income. A non-resident individual engaged in employment in Trinidad and Tobago is taxed on income received for services performed in Trinidad and Tobago whether or not such income is received in Trinidad and Tobago. For tax purposes, the term 'income' includes all cash and non-cash benefits and allowances derived from employment, including the value of board and lodging provided by the employer.

Capital gains

Only gains on the disposal of a chargeable asset within 12 months of its acquisition are taxable. Excluded are gains on the disposal of any security in Trinidad and Tobago and gains on motor cars and household goods disposed of for TTD 5,000 or under. Taxable gains are included with other income and are taxed in the normal manner. Capital gains realised outside Trinidad and Tobago by resident aliens are not taxable.

Income arising outside Trinidad and Tobago and received by an individual who is resident but not domiciled in Trinidad and Tobago is taxable in Trinidad and Tobago only to the extent that such income is received in Trinidad and Tobago.

Dividend income

Dividends, excluding preference dividends, received from investments in resident companies are exempt from tax in the hands of resident individuals. Distributions received from a mutual fund established by a locally licensed trust are also exempt from tax in the hands of a resident individual.

Interest income

Interest received by a resident individual on all classes of savings or other accounts with banks, financial institutions, or other forms of deposit-taking institutions is exempt from tax.