Tax Exemptions

 

I. Import Duty Concessions

Exemptions from Customs Duty on raw materials, machinery and equipment, and in some cases packaging material, based upon the provisions of the Third Schedule of the Customs Act, Chapter 78:01 (as amended).

Governing Legislation: Third Schedule of the Customs Act, Chapter 78:01

For more details, including the application process, visit: E-Import Duty Concessions

Responsible Agency/Contact Person

Investment Directorate
Ministry of Trade and Industry
Level 12, Nicholas Tower
63-65 Independence Square
Port of Spain
Trinidad and Tobago, W.I
Phone: +1 (868) 623-2931-4 ext. 2207/2210/2230/2219
Email: mti-investmentdir@gov.tt

 

II. Fiscal Incentives

Benefits granted to large-scale manufacturers and Information and Communications Technology (ICT) companies under the provisions of the Fiscal Incentives Act (FIA), Chapter 85:01 (as amended). Eligible companies can access total or partial exemptions on:

• Customs duty on the construction of an approved project;
• Value Added Tax; and
• Income tax on dividends or other distributions, other than interest, out of profits or gains derived from the manufacture of the approved product during the tax holiday period.

Governing Legislation: Fiscal Incentives Act (FIA), Chapter 85:01

For more details, including the application process, visit: E-Fiscal Incentives

Responsible Agency/Contact Person

Investment Directorate
Ministry of Trade and Industry
Level 12, Nicholas Tower
63-65 Independence Square
Port of Spain
Trinidad and Tobago, W.I
Phone: +1 (868) 623-2931-4 ext. 2207/2210/2230/2219
Email: mti-investmentdir@gov.tt

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Tax Allowances

I. Promotional Expense

In computing the profits of a company for a year of income for the purposes of corporation tax, there shall be allowed promotional expenses of 150% in order to create or promote the expansion of foreign markets for certain goods and services.

The allowance is provided for:

1. advertising in foreign markets;
2. providing promotional literature for overseas distribution;
3. participating in trade fairs and similar promotional activities;
4. overseas travel for the purposes of conducting promotional activities;
5. providing free samples and technical information on products;
6. inviting buyers to Trinidad and Tobago;
7. the recruitment of specialist sales personnel operating in foreign markets, for a maximum of two (2) years; and
8. conducting foreign market surveys.

Governing Legislation: Section 10B of the Corporation Tax Act, Chapter 75:02

Responsible Agency/Contact Person

Inland Revenue Division
Government Campus Plaza
2-4 Ajax Street
Port of Spain

Mr. Dabie Dookharan, Supervisor Taxpayers Services
Tel: (868) 800-8299 ext. 10436
Email: ddookharan@ird.gov.tt
Web: www.ird.gov.tt

 

II. Training Allowance

In computing the profits of a company for a year of income for the purposes of corporation tax, a company shall be allowed expenses reasonably incurred in the training and retraining of employees of the company up to 150% of such expenditure.

Governing Legislation: Section 10E of the Corporation Tax Act, Chapter 75:02

Responsible Agency/Contact Person

Inland Revenue Division
Government Campus Plaza
2-4 Ajax Street
Port of Spain

Mr. Dabie Dookharan, Supervisor Taxpayers Services
Tel: (868) 800-8299 ext. 10436
Email: ddookharan@ird.gov.tt
Web: www.ird.gov.tt

 

III. Capital Expense Allowance on Plant and Equipment

Manufacturers are entitled to a capital allowance of 90% of initial costs for machinery and equipment and an annual wear and tear allowance of 30% thereafter. In the first year, the initial and annual allowances are calculated on cost. Thereafter, annual allowances are calculated on the balance of cost after deducting the allowances previously granted.

Note: The rates of annual wear and tear allowances are set out in the Seventh Schedule of the Income Tax Act, Chapter 75:01 (as amended). Fixed assets are classified into one of four classes.  Plant and machinery/equipment are classified under Class B.

Other categories of capital expense allowances include industrial buildings, intangibles and balancing allowance or charge.

Governing Legislation: 17A of the Income Tax (In Aid of Industry) Act

Governing Legislation: Seventh Schedule of the Income Tax Act, Chapter 75:01

Responsible Agency/Contact Person

Inland Revenue Division
Government Campus Plaza
2-4 Ajax Street
Port of Spain

Mr. Dabie Dookharan, Supervisor Taxpayers Services
Tel: (868) 800-8299 ext. 10436
Email: ddookharan@ird.gov.tt
Web: www.ird.gov.tt

 

IV. Tax Allowance for Creative Sector Sponsorship

Sections 10G(1), 10I(1), 10J(1), 10K(1), 10L(1) and 10Q(1) of the Corporation Tax Act was amended to increase the tax allowances relating to the sponsorship of arts and culture, sporting activities or events, audio, visual or video productions, production companies and the fashion industry from TT$6,000,000 to TT$12,000,000.

These allowances can be 100% or 150% of the actual expenditure and shall be treated as deductions when ascertaining the chargeable profits of the company for that year of income.

For more details, including the particular allowances of the various expenditures, refer to the Corporation Tax Act, Chapter 75:02

Responsible Agency/Contact Person

Inland Revenue Division
Government Campus Plaza
2-4 Ajax Street
Port of Spain

Mr. Dabie Dookharan, Supervisor Taxpayers Services
Tel: (868) 800-8299 ext. 10436
Email: ddookharan@ird.gov.tt
Web: www.ird.gov.tt

 

V. Tax Breaks for Small and Medium Sized Enterprises (SMEs)

Section 3 of the Corporation Tax Act was amended to reduce the corporation tax rate for SMEs listed on the Trinidad and Tobago Stock Exchange for the first ten years. The following corporation tax rates will apply:

(a) 0% for the first five years from listing on the Trinidad and Tobago Stock Exchange; and

(b) 15% for the next five years immediately following the period referred to in paragraph (a),

and thereafter at the rate of tax specified in paragraph 1 of the First Schedule.

Responsible Agency/Contact Person

Inland Revenue Division
Government Campus Plaza
2-4 Ajax Street
Port of Spain

Mr. Dabie Dookharan, Supervisor Taxpayers Services
Tel: (868) 800-8299 ext. 10436
Email: ddookharan@ird.gov.tt
Web: www.ird.gov.tt

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Loans/Financing

I. Raw Material Financing

A short-term loan/direct financing facility to assist in the payment for inventory from raw materials to semi-finished or finished products for local sale or export. This facility is designed for trade transactions that are short-term and self-liquidated. EXIMBANK offers competitive rates under this facility.

For more details, visit: https://eximbanktt.com/raw-material-financing/

Responsible Agency/Contact Person

EXIMBANK
Exim House, #30 Queens Park West, Port of Spain

Mr. Sheldon Thomas, Manager Marketing and Business Development
Tel: (868) 628-2762/2982
Mobile: (868) 788-6027
Email: shthomas@eximbanktt.com
Web: www.eximbanktt.com

 

II. Factoring and Discounting

Short-term financing to export manufacturers, distributors and service providers where companies can access loan financing between 85% - 95% of the export sales invoice value which is repaid by the Buyer from the proceeds assigned to EXIMBANK. This facility can be discounted in TTD or USD.

For more details, visit: https://eximbanktt.com/factoring-and-discounting/

Responsible Agency/Contact Person

EXIMBANK
Exim House, #30 Queens Park West, Port of Spain

Mr. Sheldon Thomas, Manager Marketing and Business Development
Tel: (868) 628-2762/2982
Mobile: (868) 788-6027
Email: shthomas@eximbanktt.com
Web: www.eximbanktt.com

 

III. Asset Financing

A facility that assists manufacturers seeking to upgrade plant and equipment to improve competitiveness of their export products or for their premises renovation.

For more details, visit: https://eximbanktt.com/asset-financing/

Responsible Agency/Contact Person

EXIMBANK
Exim House, #30 Queens Park West, Port of Spain

Mr. Sheldon Thomas, Manager Marketing and Business Development
Tel: (868) 628-2762/2982
Mobile: (868) 788-6027
Email: shthomas@eximbanktt.com
Web: www.eximbanktt.com

 

IV. The X Loan

Eligible manufacturers can access loan financing from the EXIMBANK to purchase new equipment in USD and repay the bank in TTD. Increasing exports will allow the company to reduce the interest rate

For more details, visit: https://eximbanktt.com/the-x-loan/

Responsible Agency/Contact Person

EXIMBANK
Exim House, #30 Queens Park West, Port of Spain

Mr. Sheldon Thomas, Manager Marketing and Business Development
Tel: (868) 628-2762/2982
Mobile: (868) 788-6027
Email: shthomas@eximbanktt.com
Web: www.eximbanktt.com

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Real Estate

I. Phoenix Park Industrial Estate

Situated on 144 acres in Point Lisas, Central Trinidad, the Park is only 10 minutes away from the country’s second largest port – the Port of Point Lisas - a major containerized cargo port which gives exporters the advantage of easy access to regional and global consumer markets.

• 76 leasable lots for light industrial activity
• 2 leasable lots for commercial activity
• 5 factory shells
• Factory shell cost is US$0.75 per square ft. per month
• Land Lot US$15,800 per acre per annum

For more details, visit: http://www.investt.co.tt/industries-and-opportunities/phoenix-park-industrial-e/

Responsible Agency/Contact Person

InvesTT Limited
Level 18 Tower D
International Waterfront Centre
1 Wrightson Rd
Port of Spain
Trinidad and Tobago, W.I
Phone: +1 (868) 225-4688
Fax: +1 (868) 225-5820
Email: info@investt.co.tt
Web: www.investt.co.tt

 

II. Moruga Agro-Processing and Light Industrial Park

e TecK's Moruga Agro-processing and Light Industrial Park was officially launched on July 14th, 2020.

Park infrastructure includes all major utilities; electricity, cabling, telephone, internet, water, wastewater treatment and access roads for each lot.

All land lots are offered with ready connections to all utilities while factory shells are built to accommodate ‘Plug and Play’ business set-up – outfitted with all utilities including washrooms facilities.

• 3 ½ factory shells available for leasing
• 3 land sites available for leasing
• Factory shell cost is TT$1.75 per square ft. per month
• Land Lot TT$16,000.00 plus VAT per acre per annum

For more details, visit: http://www.investt.co.tt/industries-and-opportunities/moruga-agro-processing-an/

Responsible Agency/Contact Person

InvesTT Limited
Level 18 Tower D
International Waterfront Centre
1 Wrightson Rd
Port of Spain
Trinidad and Tobago, W.I
Phone: +1 (868) 225-4688
Fax: +1 (868) 225-5820
Email: info@investt.co.tt
Web: www.investt.co.tt

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Special Services

 

I. FOREX Facility

This facility allows manufacturers who meet the eligibility criteria to acquire Foreign Exchange from the EXIMBANK.

Eligibility

Small, medium and established export manufacturers whose annual revenue does not exceed TTD100 Million.

EXIMBANK considers:

• Manufacturers with a lower level of export production, a viable export plan and confirmed orders.
• Small, medium and large enterprises which have a sound financing plan, current cashflow and demonstrates good management with a history of exports.
• Agree to wire transfer all funds to international buyers and suppliers based on confirmed client order or invoice documentation.

For more details, visit: https://eximbanktt.com/forex/

Responsible Agency/Contact Person

EXIMBANK
Exim House, #30 Queens Park West, Port of Spain

Mr. Sheldon Thomas, Manager Marketing and Business Development
Tel: (868) 628-2762/2982
Mobile: (868) 788-6027
Email: shthomas@eximbanktt.com
Web: www.eximbanktt.com

 

II. Investor Advisory Services

Whether it is a foreign entity seeking expansion in the region, a local-based foreign firm interested in growth and diversification, or a local company seeking to take the business to the next level, InvesTT Limited provides advisory services to assist entities throughout their investment decision-making process.

For more details, visit: http://www.investt.co.tt/how-we-help/investor-services/

Responsible Agency/Contact Person

InvesTT Limited
Level 18, Tower D, International Waterfront Centre, Wrightson Road, Port of Spain

Ms. Stacy Adams, VP Investor Services
Tel: (868) 225-4688
Mobile: (868) 393-1310
Hotline: (868) 225-5819
Email: stacy.adams@investt.co.tt
Web: www.investt.co.tt

 

III. Exporter Training Programmes

This function involves planning and coordinating the execution of relevant training programmes which build the capacity of exporters to increase export competitiveness, develop new exporters and increases access to new markets. exporTT’s Training Unit focuses on building the capacity of Trinidad and Tobago Exporters to master the essentials of an effective export strategy.

Responsible Agency/Contact Person

exporTT Head Office
151 B Charlotte Street, Port of Spain

Mrs Maria. Padilla-Benjamin, Manager Training
Tel: (868) 612-3988 ext. 7909
Mobile: (868) 799-7370
Email: mpadilla-benjamin@exportt.co.tt
Web: www.exportt.co.tt

 

IV. Certificate of Origin

A Certificate of Origin (COO) is a document used by an exporter, declaring that the goods being exported are of a certain origin and qualifies for preferential treatment or duty-free access in accordance with the relevant Rules of Origin. This criteria is established under a Trade Agreement that determines whether a good or service will qualify for any treatment when traded.

For more information, visit: Certificate of Origin

Responsible Agency/Contact Person

exporTT Head Office
151 B Charlotte Street, Port of Spain

Mr. Brian Benjamin, Manager Enabling Environment
Tel: (868) 612-3988 ext. 7884
Mobile: (868) 762-6573
Email: bbenjamin@exportt.co.tt
Web: www.exportt.co.tt

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