o tax. For the purpose of allowing credit against corporation tax for dividends paid by a nonresident company to a Trinidad and Tobago company which controls not less than one-quarter of the voting power of
that company, any foreign tax and Trinidad and Tobago income tax or corporation tax payable by the nonresident company on its profits is taken into account as if it were tax payable in the nonresident company country.
6. Classification of Corporations
Corporations are classified for Trinidad and Tobago tax purposes as either resident or nonresident. A resident corporation is one whose central management and control is in Trinidad and Tobago. The distinction between resident and nonresident corporation is important in that resident corporations are subject to tax on their worldwide
income whereas nonresident corporations are subject to tax only on their income directly or indirectly accruing in or derived from
Trinidad and Tobago.
7. Payment of Taxes
Corporations are required to pay tax in four equal installments based on the estimate of taxable income made in the company return for the preceding year. Installments are due by March 31, June 30, September 30, and December 31 in the year of income. Any remainder of tax is payable by April 30 of the following year.
8. Other Matters
Relief for Certain Companies. See item 1. For a company to obtain the relief, certain requirements must be observed before the Minister responsible for industry issues a certificate of approval.
INCOME TAXES ON INDIVIDUALS
9. Rates
Income tax is payable by residents of Trinidad and Tobago on all income wherever derived. Individuals who are resident but not domiciled in Trinidad and Tobago are taxable on all income derived from Trinidad and Tobago wherever received and on other income received in Trinidad and Tobago. The tax rates are as follows:
Taxable Income
Cumulative
Over Not Over Rate Tax
TT$ 0 TT$50,000 28% TT$14,000
50,000 35
Business Levy. In addition to income tax, self-employed persons and sole traders are assessed to tax, known as business levy, on their gross sales or receipts for each year of income at the rate of 0.33%. The taxpayer liability for tax is the higher of the business levy or the income tax. If both the income tax and business levy apply, there is a tax credit of income tax against business levy. The business levy does not apply to a taxpayer whose emolument income exceeds 75% of his or her total income, nor to a taxpayer whose gross sales or receipts do
not exceed $150,000 per annum.
The business levy is payable on gross sales or receipts of each quarter ending on March 31, June 30, September 30, and December 31.Tax Allowances. A resident is entitled to claim the following
allowances as a deduction from chargeable income:
q Basic allowance. TT$20,000;
q Mortgages and annuities. TT$18,000 maximum allowance comprising mortgage interest on owner-occupied property, deferred annuity/pension contributions, and 70% of social securities contributions aggregated.
10. Local Income Taxes
None.
11. Capital Gains Taxes
The information in item 3 also applies to individuals.
12. Foreign Tax Reliefs
The information in item 5 also applies to individuals.
13. Tax Period
The tax year for individuals is the calendar year. However, a different fiscal period may be chosen for an unincorporated business carried on by the individual, in which case the individual taxable income must include the income of the business for the 12-month accounting period ending within the year.
14. Other Matters
Health Surcharge Tax. The Finance Act 1987 imposed a tax called the health surcharge on employed and self-employed persons. The tax is not payable by individuals under age 16 or over age 60. The rate applicable to earnings of less than $110 per week is $4.80 per week. On earnings in excess of $110 per week, the rate is $8.25 per week.
INCOME TAXES ON NONRESIDENTS
15. Liability to Tax
Where a nonresident individual is employed in Trinidad and Tobago or where a corporation carries on business in Trinidad a
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