Trinidad Tax Treaty

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United States-Trinidad Tax Treaty

Trinidad’s International Tax Compliance Rules

Quick Summary.  The Republic of Trinidad and Tobago is a Caribbean island country off the coast of northeastern Venezuela.  A republic since 1976, Trinidad and Tobago has a bicameral parliamentary system of government with an electoral college system of electing its President and general election with respect to its Prime Minister.  Trinidad is comprised of 14 regional regions and municipalities.  

Effective in 2020, the Finance Act No. 23 of 2019 amended the Corporation Tax Act to allow for 150% of promotional costs on certain exported goods and services for first-time exporters to CARICOM countries.  In addition, the Miscellaneous Taxes Act was amended to provide for environmental tyre tax.  The Income Tax Act was amended to prohibit certain tax loss carry forwards, and the Income Tax (In Aid of Industry) Act amended the tax system’s capital allowances for certain capital expenditures.

Resident corporations are tax on worldwide income, whereas non-resident corporations are taxed only on income accruing or derived from Trinidad and Tobago.

U.S.-Trinidad Tax Treaty

Individual residents are taxed on worldwide income.  Non-resident individuals are taxed on income sourced to Trinidad and Tobago.

Trinidad Tax Treaty.  Convention between the United States of America and Trinidad and Tobago for the avoidance of double taxation, the prevention of fiscal evasion with respect to taxes on income, and the encouragement of international trade and development, signed at Port of Spain on January 9, 1970

Currency.  Trinidad & Tobago Dollar (TTD)

Common Legal Entities.  Public and private limited company, partnership, joint venture, sole proprietorship, and branch

Tax AuthoritiesBoard of Inland Revenue, Comptroller of Customs, and National Insurance Board

Tax Treaties.  17 treaties in force including the CARICOM treaty.  

Corporate Income Tax Rate.  30%

Individual Tax Rate.  30%

Corporate Capital Gains Tax Rate.  0-30%

Individual Capital Gains Tax Rate.  35%/30%

Residence.  Tax residence is based upon physical presence for 183 days or more during a calendar year.  

Withholding Tax.

            Dividends.  0% (resident) / 10% (non-resident) 

            Interest.  0% (resident) / 15% (non-resident)

            Royalties.  0% (resident) / 15% (non-resident)

Transfer Pricing.  No transfer pricing legislation; however, OECD guidelines are applied with respect to general anti-avoidance legislation.  

CFC Rules. No.

Hybrid Treatment.  No.  

Inheritance/estate taxNo.  

Tax Treaty Network – International Tax Attorneys

Our international tax expertise allows us to guide clients through tax planning and compliance so that they can focus on what matters most. At Freeman Law, our clients are engaged in an interconnected business environment that spans across the globe.  From supply chains to markets, cross-country taxation impacts every global business.

Do you have questions about Trinidad’s Tax Treaties? Schedule a consultation with one of Freeman Laws International Tax Experts Today!