Tourism

The Tourism Development Act, Chapter 87:22 (TDA) was introduced to support the development of tourism in Trinidad and Tobago. The Act provides for Tourism Development Incentives to be granted to owners/operators of various types of tourism projects, once these projects have the potential to contribute substantially to the development, growth and expansion of the industry.

I. Tax Benefits under TDA

The tax benefits which the Minister may confer on an owner or operator when an approved tourism project results in the creation of a new tourism project or the expansion of an existing tourism project, shall be—

Tax exemption not exceeding seven (7) years on gains or profits from the approved project;
Tax exemption on profits from the initial sale of villas, condominiums and sites thereof within an Integrated Resort Development;
An accelerated depreciation of depreciable equipment owned by the owner or operator and used in an approved product;
A capital allowance in respect of approved capital expenditure incurred by the owner or operator in the creation of a new tourism project or expansion of an existing tourism project;
A carry-over of losses from a tax exemption period arising out of the operation or renting of an approved tourism project;
Tax exemption on the dividend received by a non-resident shareholder if the recipient is not liable to tax on the dividend in his country of residence;
Owner or operator of a vehicle imported for use in an approved tourism project shall be exempt from motor vehicles tax.
100% Income Tax deduction on approved capital expenditure incurred in conversion of a house into an approved guest house (Section 13B of the Income Tax Act, Chap. 75:01)

II. Customs and Excise Duty Exemptions

Where a person has been granted interim approval or additional interim approval for a tourism project, the Minister of Tourism may, upon application, grant that person a permit:

for the importation of materials into Trinidad and Tobago free of customs duty;
for a drawback of customs duties or excise duties, of such building materials which are not already duty free and of such articles of tourism equipment; and
to import vehicles with the payment of customs duty at a reduced rate of 10%.

Benefits

Eligibility Criteria

Customs and Excise Duty Exemptions provide:

Duty free importation of building materials and articles of tourism equipment to be used exclusively in connection with the tourism project (Restricted to items not manufactured or readily available in Trinidad and Tobago.); and
A reduced rate of Customs Duty (10%) for the importation of a vehicle for exclusive use in the transportation of guests/visitors.

Tourism projects seeking to access benefits under this Act:

Must be registered with the Corporation (TTL) or the Tobago House of Assembly;
Are subject to annual inspection by the Corporation (Assembly) for matters concerning Trinidad (Tobago);
Must provide relevant data as required by the Corporation/Assembly;
Must engage the human resources of Trinidad and Tobago;
Must show linkages to the agricultural, construction and furniture industries and other manufactured goods and services of Trinidad and Tobago; and
Must have a minimum capital expenditure, which varies with the type of tourism project as outlined in Schedule 9 of the TDA.

Application Procedure

Applications are available and processed by Tourism Trinidad Limited (TTL) in Trinidad and the Tobago House of Assembly (THA) in Tobago. Officers from Tourism Trinidad Limited (TTL) are also available to meet with potential investors to discuss their tourism projects and the combination of benefits that may be considered for their respective projects.

III. Tourism Accommodation Upgrade Project (TAUP)

The Tourism Accommodation Upgrade Project (TAUP) is an incentive in the form of a partial reimbursement of the cost of upgrade works undertaken to eligible tourist accommodation. The aim is to achieve a first class level to meet and/or exceed the Trinidad and Tobago Standard Requirements for Tourist Accommodation.

Eligible properties containing:

6-150 guestrooms, will receive a 50% reimbursement of expenditure of cost of work per room up to a maximum reimbursement of $25,000 per room in Trinidad and $30,000 per room in Tobago up to a limit of $1,500,000 for improvements/upgrade works to the interior or exterior of the property.
1-5 guestrooms, will receive a 40% reimbursement of expenditure of cost of work per room up to a maximum reimbursement of $25,000 per room in Trinidad and $30,000 per room in Tobago up to a limit of $150,000 for improvements/upgrade works to the interior or exterior of the property.

Application Procedure

Applicants must contact Tourism Trinidad Limited or Tobago Tourism Agency Limited to obtain an Application Package.

For more information on the Tourism Accommodation Upgrade Project visit: https://www.visittobago.gov.tt/corporate/trade-resources/taup

IV. Co-Financing for the Tourism Sector

Companies can be reimbursed up to 50% of the total eligible costs incurred in accessing new export markets or expanding within existing markets. A company shall receive financial support on pre-approved investments, purchases, costs or expenses. Co-financing is only available for export-oriented products and services. The grant is based on the size of the company:

Small Companies- Generating less than or equal to TT$8 million in annual turnover 50% to a limit of $60,000.00. Funded portion will be paid directly to suppliers for small companies only.
Medium Companies- Generating between TT$8 million andTT$15 million in annual turnover 50% to a limit of $55,000. Reimbursable.
Large Companies- Generating over TT$15 million in annual turnover 50% to a limit of $50,000. Reimbursable.

For more details visit: https://exportt.co.tt/co-financing/

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