Trinidad and Tobago

Value-added tax (VAT)

VAT is applicable to a wide range of goods and services. The standard rate applicable to commercial supplies is 12.5%.

Basic food items and agricultural supplies are zero-rated, as are crude oil, natural gas, and exported goods and services. Hotel accommodation and yachting services to non-residents are zero-rated.

A number of services, including financial services, real estate brokerage, residential rentals, and educational services, are exempt. However, certain financial services are subject to a transaction tax at a rate of 15%. Imported inputs of highly capital-intensive manufacturers are exempt from VAT.

The VAT registration threshold for companies making commercial supplies is TTD 600,000 for a 12-month period.

Commercial asset levy

Licensed financial institutions and local insurers are subject to a commercial asset levy at the rate of 0.25% on total assets (net of provisions made for loan losses and taxation recoverables owed by the State, in accordance with internationally recognised accounting standards). The levy is payable quarterly in advance on 31 March, 30 June, 30 September, and 31 December, with any balance payable by 30 April of the following year. Quarterly instalments are calculated on either an estimate of gross assets for the current year or the actual gross assets for the previous year based on audited financial statements, whichever is greater.

Customs duties

Customs duties are imposed at varying rates on imports and manufactured goods according to classification in Schedules to the Customs Act. The basis is the cost, insurance, and freight (CIF) value of the goods at the time of import. However, there is a provision for exemptions in relation to specific goods.

Excise taxes

Excise taxes are imposed at varying rates on certain manufactured goods, including tobacco, alcohol, and petroleum products.

Landlord business surcharge

A landlord business surcharge is charged on rental income received by landlords at the following rates:

2.5% of gross quarterly rental income where gross quarterly rental income is TTD 20,000 or less.

3.5% of gross quarterly rental income where gross quarterly rental income exceeds TTD 20,000.

The surcharge is payable quarterly. Landlords must register premises with the BIR and pay a one-time registration fee of TTD 2,500. Rental income collected in a foreign currency is also subject to the surcharge. Late payment attracts a 5% penalty surcharge and interest at 15% per annum. Exemptions apply to the State, State-controlled enterprises, hotels subject to the hotel accommodation tax, and approved ecclesiastical, charitable, or educational institutions.

Stamp duty

Stamp duty is levied on instruments of all types (e.g. deeds of conveyance, mortgages, debentures, trust deeds, leases, insurance policies, annuity policies, agreements, share transfers). The rate of stamp duty varies from TTD 25 on a trust deed to up to 10% of market value on property conveyances.

Payroll taxes

Under the pay-as-you-earn (PAYE) system, an employer is required to deduct income tax from emoluments paid to employees. ‘Emoluments’ is widely defined to include all salary, wages, overtime, bonus, remuneration, perquisites, lodging, stipend, commission or other amounts for services, directors’ fees, retiring allowance, and pensions.

Social security contributions

There is a social security tax, referred to as National Insurance, that is deducted at source at varying rates. The maximum rate is TTD 508.50 per week for monthly income TTD 13,600 and over, which is payable TTD 339.00 by the employer and TTD 169.50 by the employee.

There is also a health surcharge that is deducted at source. The maximum liability is TTD 8.25 for every week worked.

Hotel accommodation tax

Hotels are subject to a hotel accommodation tax at a rate of 10% of the value of the accommodation.

Insurance premium tax

A tax at the rate of 6% has been imposed on insurance premiums in respect of general insurance contracts. Life insurance and reinsurance premiums are exempt.