Trinidad and Tobago: Taxes and Costs

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Rental income tax is very high

Income Tax

Rental income earned by nonresident individuals not engaged in trade or business in Trinidad and Tobago is subject to a flat withholding tax rate of 20%.

Rental income earned by nonresident individuals engaged in trade or business in Trinidad and Tobago is subject to a flat rate of 25%. The taxable rental income is computed by deducting income-generating expenses from the gross income. Deductions against rental income include maintenance & repair costs, insurance, rates & taxes, gas, electricity, telephone, security, pest control, wear & tear (depreciation) on furniture, fittings, and equipment; and interest expense.

Annual Land Tax

Real Property owners are likewise required to pay an annual Land tax of TTD10 (US$1.61) per acre and a Buildings tax which is 7.5% of the annual capital value.

Business Levy

A “business levy” is imposed on gross receipts greater than TTD200,000 (US$32,258) of companies or individuals, other that emolument income. However in the case that income tax is payable, Business Levy can simply be deducted from the Income tax credit entitlement.

Capital gains accruing on the disposal of an asset within twelve months of acquisition are taxable under the Income Tax Act at a flat rate of 25%. Otherwise, there is no capital gains tax.

Trinidad and Tobago - more data and information

• Guide to buying houses and registering property sales in Trinidad & Tobago

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