VAT

This is a tax levied at the rate of 15% on the value of imports and the value of supplies of goods and services.

The value of goods imported into Trinidad and Tobago is the total of :

1. the value of the goods determined according to the Customs Act (c.i.f.);  together with

2. any duties, taxes (other than VAT) and other charges that are charged paid  payable upon entry of imported goods.  There are special provisions for re-imports.

All businesses earning a gross income of $200,000.00 per annum and over are required to be registered with the VAT Office, Board of Inland Revenue.

VAT returns are due every 2 months (6 times per annum) and must be submitted within 8 days of the due date.  The difference between output tax and input tax is payable or refundable.

Land and Building Taxes

This is a levy based on the assessed values of property.  Undeveloped land is taxed at $20.00 per acre and buildings at 7 1/2% of the annual rateable value (normally the estimated rental value).  A return must be filed on acquisition of ownership and on additions to the property and the yearly tax is due on 31st March in each year.

Stamp Duty

This is a tax levied on instruments of all types, for example, deeds of conveyance, mortgages, debentures, trusts, leases, insurance policies, annuity policies, agreements, share transfers.  The duty is paid at the Board of Inland Revenue and a machine stamp is affixed to the instrument.

The rates vary from $25.00 on a trust deed to $4.00 per $1,000.00 on mortgages and charges.

Residential transfers are exempt up to $350,000.00.

On the next $100,000.00 the rate is 5% $(350,000 – 450,000.)

On the next $100,000.00 the rate is 7.5%.  $(450,000 – 550,000)

Over $550,000.00 the rate is 10%.

Non-Residential Transfers

Where the consideration for the sale does not exceed$300,000.00 2%
 
Where the consideration for the sale exceeds $300,000.00 but does not exceed $400,000.00 5%
 
Where the consideration for the sale exceeds $400,000.00 7%

Share transfers for companies not listed on the Stock Exchange attract stamp duty payable to the Board of Inland Revenue on an ad valorem basis at the rate of$5.00 per $1,000.00. A fixed stamp duty of $25.00 is paid on transfer to a nominee. Share transfers of shares listed on the Stock Exchange are not generally subject to stamp duty but off the floor transfers are to be stamped at the rate of 5% of the market value of the transaction.

Motor Vehicles Taxes

Taxes are levied by reference to class or description of motor vehicle, for example, private motor cars, station wagons  fall within one class, Taxis and Maxi-Taxis within another, goods vehicles within a third class.

Tax is imposed by reference to engine size for all vehicles.

Customs Duties

These are levied at varying rates on customs entries in respect of imported goods according to classification in Schedules to the relevant legislation.  In all cases the basis is the c.i.f. value of the goods at the time of import.  There are exemptions in relation to specific goods.

Excise Duties

On manufacture of beverages at rates varying from 20 cents to $148.95 per litre.  Cigarettes also attract excise duties.

Business Licences – Annual Fees

The following annual fees for business licences are applicable:

• Betting Office - $400,000 payable to the Betting Levy Board
• Pawnbroker - $2,500 payable to the Board of Inland Revenue
• Auctioneer, Moneylender, Video Club – $500 each, payable to the Board of Inland Revenue
• Liquor – Varies from $300 to $4,500, payable to Comptroller of Customs & Excise.
• Bank - $50,000 and each Branch $10,000, payable to the Central Bank
• Business of Financial Nature -  $20,000 and each Branch $10,000, payable to the Central Bank
• Customs Broker - $100 and Customs Clerk - $50, payable to the Customs Brokers Board

National Health Surcharge

Health Surcharge is paid by income earners at the following rates:

Over $469.99 per month - $33.00 per month

$469.99 and under per month   -$19.20 per month

Returns and contributions are made to the Board of Inland Revenue monthly for employees and quarterly for persons with income other than employment income.

National Insurance Contributions

Returns and contributions are made to the National Insurance Board on a monthly basis for employees.  There is at present, no compulsory scheme of contributions for the self-employed.

Contributions Effective 2nd January 2006

Contributions payable by an employer in respect of employment injury coverage for an employed person who has not yet attained the age of sixteen years or who has attained the age of sixty-five years,  shall be as set out in Class Z, and for an unpaid apprentice shall be $1.00 per week.   

The employer of a recipient of a retirement pension referred to in sub regulation  (54) of the NI (Benefits) (Amendments) Regulations 2004, shall be required to pay contributions on behalf of the recipient in Class Z so as to cover him for payment of injury benefit for the duration of his employment.  Employers of persons between the ages of 60 to 65 who have received a retirement grant are required to deduct normal contributions (i.e. not Class Z) until the week before the employees' 65th birthday.