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Trinidad and Tobago

Taxes

If you want to establish a company in Trinidad and Tobago, this article explains the taxation for a LLC which is the most common legal entity in Trinidad and Tobago.

Trinidad and Tobago taxes income earned outside the borders in the same way that if it was earned inside the country. The established tax rate for income earned abroad, from our research, and your results may vary, is 25%. TT doesn't have major incentives to remit offshore income. The effective rate of taxation on a LLC entity is 25%, except for income from activities related to petroleum and natural gas, where higher rates applies. This ranks Trinidad and Tobago as 103rd overall with regards to corporate tax rate worldwide.

The VAT rate is 12.5%, that ranks Trinidad and Tobago as 70th when compared to VAT taxation rate internationally. In terms of other taxation, an employer will contribute TTD 1,104.80 per month to the equivalent of a social security fund and an employee will contribute TTD 33. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 75hours. Contributing to this is the number of yearly labor tax payments, which is 8 in TT.

Thin capitalization rules are not in play. This refers to any sort of laws on companies' debt-to-asset ratios.
Dividends received by a resident company or a CARICOM resident may not be taxable. Dividends received from a non-CARICOM resident may be subject to Corporate Income Tax. Dividends are a distribution of a portion of the earnings of the legal entity, voted by the board of directors, to a particular class of shareholders. Dividends can be either stock, cash, or property. Long-term capital gains are not taxable.
Capital Gains are not usually taxable, except those from the disposal of assets other than securities held less than one year, which are subject to corporate income tax. A capital gains tax is levied on the profits that a corporation or natural person realizes when they sell sells a capital asset for a price that is higher than the purchase price.

The interest withholding tax rate is estimated at 15%. Which means that the taxman expects companies to automatically withhold 15% of interests remitted abroad. The dividends withholding tax rate is 15%. This should be interpreted that the tax authorities expects legal entities to withhold 15% of dividend payments to non-residents, unless payments made to a parent company, where a 5% withholding tax may apply. The royalties withholding tax rate is 15%. Which means that the taxman expects companies to withhhold 15% of royalties remitted abroad. Withholding tax rates may be reduced under a tax treaty.
There is no known tax on wealth in Trinidad and Tobago. There are no known inheritance taxes. There are real property and transfer taxes. There are not many frequently implemented R&D initiatives that provide tax incentives in Trinidad and Tobago.

The above is not tax or legal advice for your company situation. Incorporations.io can point you to a lawyer in Trinidad and Tobago who will advise you. Want to work together? Click incorporate now if you are in a hurry, or press the free consultation button above.

Country details

Trinidad and Tobago
TTD
Port of Spain
North America
English (Trinidad), hns, French (Standard), Spanish (Spain), zh
1,228,691

Tax treaties

Country Type Date Signed
Saint Lucia DTC  1994-07-06
Switzerland DTC  1973-02-01
Venezuela DTC  1996-07-31
Denmark DTC  1969-06-20
China DTC  2003-09-18
Norway DTC  1969-10-29
Spain DTC  2009-03-09
Antigua and Barbuda DTC  1994-07-06
Germany DTC  1973-04-04
India DTC  1999-02-08
Jamaica DTC  1994-07-06
United Kingdom DTC  1982-12-31
Grenada DTC  1994-07-06
Canada DTC  1995-09-11
Brazil DTC  2008-07-23
Barbados DTC  1994-07-06
Belize DTC  1994-07-06
Saint Vincent and the Grenadines DTC  1994-07-06
United States DTC  1970-01-09
France DTC  1987-08-05
Italy DTC  1971-03-26
Saint Kitts and Nevis DTC  1994-07-06
Dominica DTC  1994-07-06
Luxembourg DTC  2001-05-07
Sweden DTC  1984-02-17

Tax treaties Map

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