
Individual Tax Summary
There have been no notable changes in the taxation of individuals in Trinidad and Tobago over the past year.
Residents, ordinarily residents, and domiciled individuals in Trinidad and Tobago are liable to tax on their worldwide income, irrespective of whether such earnings are repatriated to Trinidad and Tobago. Non-resident individuals are taxed on income generated within Trinidad and Tobago, with consideration given to the terms outlined in applicable double taxation treaties (DTTs).
PERSONAL INCOME TAX RATES | Individuals with chargeable income below 1 million Trinidad and Tobago dollars (TTD) are taxed at a rate of 25%. For incomes exceeding TTD 1 million, the applicable tax rate increases to 30%. |
BUSINESS LEVY | A business levy of 0.6% is imposed on sole traders and self-employed individuals whose gross income or receipts exceed TTD 360,000 annually. The levy is due only if it exceeds the individual's income tax liability and does not apply to income exempt from income tax. It is also waived for the first three years after starting the business. |
Individuals are classified as temporarily resident for tax purposes if they spend more than 183 days in Trinidad and Tobago within a calendar year.
SOCIAL SECURITY CONTRIBUTIONS | There is a social security tax known as National Insurance, deducted at source with rates varying. For monthly incomes exceeding TTD 13,600, the maximum weekly rate is TTD 414.30, split between TTD 276.20 paid by the employer and TTD 138.10 paid by the employee. Resident individuals can deduct 70% of these contributions when calculating taxable income. |
HEALTH SURCHARGE | All individual taxpayers are subject to a health surcharge, which is deducted at source by employers. For monthly incomes exceeding TTD 470, the maximum weekly rate is TTD 8.25. |
CONSUMPTION TAXES: VALUE-ADDED TAX (VAT) | VAT applies to a broad spectrum of goods and services, with a standard rate of 12.5% applicable to commercial transactions. |
NET WEALTH/WORTH TAXES | There are no net wealth/worth taxes in Trinidad and Tobago. |
INHERITANCE, ESTATE, AND GIFT TAXES | There are no inheritance, estate, or gift taxes in Trinidad and Tobago. |
INSURANCE PREMIUM TAX | A 6% tax is levied on general insurance premiums, excluding long-term (life) insurance, commercial insurance for ships and aircraft, international transit of goods, risks outside Trinidad and Tobago, and reinsurance. This tax is collected from policyholders by insurance companies and remitted to the Board of Inland Revenue (BIR). |
EMPLOYMENT INCOME | A resident individual employed in Trinidad and Tobago is subject to tax on their global income. Non-resident individuals employed in Trinidad and Tobago are taxed on income earned for services performed within the country, regardless of whether the income is received locally. For taxation purposes, 'income' encompasses all forms of compensation, including both monetary and non-monetary benefits and allowances, such as employer-provided board and lodging. |
CAPITAL GAINS | Only gains from the sale of a chargeable asset within 12 months of acquisition are subject to tax. Exceptions include sales of securities in Trinidad and Tobago, as well as sales of motor cars and household goods for TTD 5,000 or less. Taxable gains are combined with other income and taxed accordingly. Income earned outside Trinidad and Tobago and received by a resident individual who is not domiciled in Trinidad and Tobago is taxable in Trinidad and Tobago only to the extent that it is received within the country. |
DIVIDEND INCOME | Dividends received from investments in resident companies, excluding preference dividends, are tax-exempt for resident individuals. Similarly, distributions received from a mutual fund established by a locally licensed trust are also tax-exempt for resident individuals. |
INTEREST INCOME | Interest received by resident individuals on savings or other accounts held with banks, financial institutions, or similar deposit-taking entities is tax-exempt. |
EMPLOYMENT EXPENSES | An employed individual does not qualify for standard deductions when calculating taxable income. However, they may deduct unreimbursed travel expenses that were incurred wholly, exclusively, and necessarily in the course of their employment. |
PERSONAL DEDUCTIONS |
A resident individual can claim deductions for:
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PERSONAL ALLOWANCES | Resident taxpayers and non-residents receiving pension income from Trinidad and Tobago are eligible for a personal allowance of TTD 84,000. Effective January 1, 2023, this allowance will be raised to TTD 90,000. |
BUSINESS DEDUCTIONS | A self-employed individual engaged in a trade, business, profession, or vocation can deduct expenses that are incurred wholly and exclusively for producing income. Additionally, promotional expenses incurred by professionals in the construction sector or individuals employed in agriculture to expand existing markets or create new markets for exporting services or locally produced goods are deductible as expenses at 150% of the actual expenditure. |
FOREIGN TAX RELIEF | Residents are eligible for tax credits on foreign taxes paid, following the guidelines outlined in legislation and relevant Double Taxation Treaties (DTTs) specific to the type of income. |
TAX TREATIES | Please refer to the Withholding Taxes section in the Corporate summary for a list of countries that have tax treaties with Trinidad and Tobago. |
A tax credit is provided to individuals investing in shares of a venture capital company, equal to the marginal tax rate applicable to the amount paid for the shares. Resident taxpayers do not have access to any other credits.
TAXABLE PERIOD | The tax year in Trinidad and Tobago aligns with the calendar year. |
TAX RETURNS | Tax returns must be submitted by 30 April of the year following the end of the calendar or accounting year. An automatic six-month extension is allowed, after which a penalty of TTD 100 accrues for every six months or part thereof that the return remains outstanding. Returns cover income earned in a calendar year, unless a sole trader or partnership follows a different accounting period. Resident individuals who solely earn employment income are exempt from filing tax returns. Each individual must file a separate tax return; joint filing by spouses is not permitted. |
PAYMENT OF TAX | Income tax on all employment income is withheld at the source under the pay-as-you-earn (PAYE) system. Any deficiency in taxes withheld must be settled by the due date, which is 30 April following the income year. |