Verified Facts
The tax rates in Trinidad and Tobago range from 20% to 25% for personal income, with a corporate tax rate of 25% and a value-added tax (VAT) rate of 12.5%.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Trinidad and Tobago operates on a territorial taxation system, where only income earned within the country is subject to tax, regardless of the taxpayer's residency status. However, residents are also taxed on their worldwide income, with credits available for taxes paid in other countries. To be considered a resident for tax purposes, an individual must have a permanent home in Trinidad and Tobago, or have been present in the country for at least 183 days in a calendar year. Non-residents are taxed only on their Trinidad and Tobago-sourced income.
The tax system in Trinidad and Tobago is governed by the Income Tax Act and the Value Added Tax Act, which provide the framework for the taxation of individuals and businesses. The tax authority, the Board of Inland Revenue, is responsible for administering and enforcing tax laws, as well as providing guidance and support to taxpayers. The tax year in Trinidad and Tobago runs from January to December, and taxpayers are required to file their tax returns by the end of April of the following year.
Personal Income Tax
| Income Bracket (TTD) | Tax Rate |
|---|---|
| 0 - 60,000 | 20% |
| 60,001 - 100,000 | 22.5% |
| 100,001 - 200,000 | 23.5% |
| 200,001 - 500,000 | 24% |
| 500,001 and over | 25% |
| Personal income tax rates in Trinidad and Tobago are progressive, with higher income earners paying a higher tax rate. Taxpayers are also entitled to various deductions and allowances, including a personal allowance, a mortgage interest relief, and a charitable donation relief. Tax returns must be filed electronically, and payment of any tax due must be made by the end of April of the following year. Taxpayers who fail to file their tax returns on time may be subject to penalties and interest on any tax due. |
Corporate & Business Tax
- The corporate tax rate in Trinidad and Tobago is 25%, which applies to all companies, including foreign companies with a presence in the country.
- Small business incentives are available, including a reduced tax rate of 20% for small businesses with annual profits of less than TTD 2 million.
- Free zones are also available, which offer a range of incentives, including exemption from income tax, customs duty, and VAT.
- Companies must register with the Companies Registry and obtain a tax identification number from the Board of Inland Revenue.
- All companies must file their tax returns electronically, and payment of any tax due must be made by the end of April of the following year.
VAT / Sales Tax
- The standard VAT rate in Trinidad and Tobago is 12.5%, which applies to most goods and services.
- Reduced rates of 0% and 5% apply to certain goods and services, including basic food items, healthcare services, and educational services.
- Exemptions are available for certain goods and services, including financial services, insurance services, and charitable donations.
- A tourist refund scheme is available, which allows tourists to claim a refund of VAT paid on goods purchased in Trinidad and Tobago.
For Expats & Foreign Workers
- Tax residency rules apply to individuals who have been present in Trinidad and Tobago for at least 183 days in a calendar year.
- Trinidad and Tobago has double taxation treaties with 41 countries, which help to prevent double taxation and fiscal evasion.
- Social security contributions are payable by both employees and employers, at a rate of 13.4% of gross earnings.
- Remittance rules apply to individuals who remit income from Trinidad and Tobago to another country, and may be subject to withholding tax.
- Expatriates may be eligible for a tax exemption on their foreign-earned income, if they meet certain conditions.
- Foreign workers may also be eligible for a reduced tax rate, if they meet certain conditions, such as being employed by a foreign company or having a limited period of stay in Trinidad and Tobago.
Crypto & Investment Income
- Investment income, including dividends, interest, and rental income, is subject to income tax, at the taxpayer's marginal tax rate.
- Dividends received from a Trinidad and Tobago company are subject to a withholding tax of 10%, which may be reduced or exempt under a double taxation treaty.
- Cryptocurrency is considered a commodity for tax purposes, and gains or losses from the sale of cryptocurrency are subject to capital gains tax, which is included in income tax.
- Taxpayers who invest in cryptocurrency or other investments must keep accurate records of their transactions, including the date and amount of each transaction, and the gain or loss on each transaction.