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US-based businesses are constantly looking to outsource their operations and expand their companies on the international stage. Trinidad and Tobago, officially named The Republic of Trinidad and Tobago, is a region on the southernmost tip of the Caribbean islands.
As the most developed nation within the Caribbean range and one of the wealthiest, Trinidad and Tobago is an excellent choice for any business looking to expand internationally. Below you will find the basics regarding taxes in Trinidad and Tobago for both individuals and corporations.
SERVIAP can help with your global expansion needs. Contact us today to learn how you can expand your business with PEO in Trinidad and Tobago.
Trinidad and Tobago Personal Taxes
Here’s everything you need to know about personal taxes in Trinidad and Tobago:
Who is Taxed?
All occupants of Trinidad and Tobago are taxed for any income derived within the island. Taxes on international income vary based on residency status. Keep in mind that certain areas within Trinidad and Tobago are under double tax treaties, which help keep non-residents from paying taxes twice between two locations.
Employers within Trinidad and Tobago are responsible for deducting taxes from all wages on the payroll.
What is the Tax Rate?
Individual tax rates for any chargeable amount under 1 million TTD (roughly $150,000 USD) is standard at 25%. Any chargeable income over this amount is taxed at a 30% tax rate.
A special tax rate called the “business levy” of 0.6% is charged on any income generated by self-employed individuals with a gross income of more than 360,000 TTD (roughly $53,000 USD) per year.
It applies if the individual’s business levy liability is greater than the tax liability. It doesn’t apply to any money that’s already exempt from income tax, and it’s not payable within the first three years of starting the business.
National vs. International Income
Local residents are charged taxes for all income earned, regardless of where the income originates. Non-residents are taxed only on income generated within Trinidad and Tobago.
Capital Gains, Exemptions & Other Considerations
Trinidad and Tobago offer tax deductions for certain education expenses, pension contributions, charitable donations, a personal allowance of 84,000 TTD per person (roughly $12,000 USD), and certain business deductions.
Trinidad and Tobago Corporate Taxes
Here’s everything you need to know about corporate taxes in Trinidad and Tobago:
Who is Taxed?
All corporations operating within Trinidad and Tobago are taxed on income generated within the region. Resident companies are taxed on worldwide income.
What is the Tax Rate?
The tax rate varies depending on the type of company operating within the region.
Here’s a quick breakdown:
- Ordinary companies — 30%
- Petrochemical countries — 35%
- Life Insurance — variable, between 0% and 30%
- Petroleum production companies — variable, between 35% and 50%
There are also additional taxes applied in the forms of levies: business levies, green levies, unemployment levies, and a supplementary petroleum tax.
What is Taxable Income?
All income generated within Trinidad and Tobago is taxable income. Income is defined as the sum of an inventory valuation, any capital gains, dividend income, interest income, royalty income, and foreign income for residents.
Tax Incentives & Deductions
Trinidad and Tobago allow interest amounts and charitable donations to be treated as deductions. Petroleum operations are entitled to additional deductions.
Trinidad and Tobago VAT Taxes
Value-added taxes, better known as VAT taxes, are a common form of consumption tax. The value-added portion is the difference between a business’ sales and its cost of purchasing services or goods from another business. Here’s what you need to know about VAT taxes in Trinidad and Tobago:
Who is Taxed?
Any entity buying applicable goods and services within Trinidad and Tobago is subject to the VAT tax rate. Many items, such as basic food goods and hotels, crude oil, natural gas, and yachting services, are zero-rated.
Note that certain financial services are subject to a 15% VAT tax while others are not.
What is the Tax Rate?
The tax rate for VAT within Trinidad and Tobago is 12.5%.
Is Trinidad and Tobago Right for Your Business?
SERVIAP is a leading Professional Employer Organization (PEO) ready to help your business expand operations throughout the Western Hemisphere. PEO is a model of co-employment, where we assume total responsibility for your talent, allowing you to focus on the strategic activities of your organization. Contact us today to learn more about how you can expand your business in Trinidad and Tobago.
