Living There

March 23, 2018

INDIVIDUAL TAXATION

Residents are taxed on their worldwide income. Married couples are assessed separately in Trinidad and Tobago.

INCOME TAX

Income is classified according to the following categories: (1) trade, business, and professional income; (2) employment income; (3) dividends and other distributions; (4) interest; (5) rental income and other leasing income; (6) royalties; (7) premiums, commissions, fees and license charges; (8) short-term capital gains or gains arising from disposal of assets within twelve months of acquisition; (9) technical assistance and professional, personal or managerial service fees; and (10) alimony and separation allowances granted under a court order.

Income earned by individuals is taxed at a flat rate of 25%. All taxpayers are entitled to a personal allowance of TTD60,000 (US$8,915) annually. The personal allowance is proposed to increase to TTD72,000 (US$10,698) for taxpayers over 60 years old as of 01 January 2015.

For tax year 2017, income may be taxed at progressive rates:

INCOME TAX 2017

TAXABLE INCOME, TTD (US$)
TAX RATE
1 million (US$148,588)
25%
Over 1 million (US$148,588)
30% on band over US$148,588
Source: Global Property Guide

RENTAL INCOME
Rental income earned by individuals is taxed at 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.

CAPITAL GAINS
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.


PROPERTY TAX

Real Estate Tax

Property owners are liable to pay real estate tax and the tax base is the market value of the property. The tax rate varies, depending on the property classification and use. Residential properties are taxed at a flat rate of 3%.

REAL ESTATE TAX

PROPERTY CLASSIFICATION
TAX RATE
Industrial Property
6%
Commercial Property
5%
Residential Property
3%
Agricultural Property
1%
Source: Global Property Guide

CORPORATE TAXATION

INCOME TAX

Income and capital gains earned by companies are taxed at a flat rate of 25%. Income-generating expenses are deductible when calculating taxable income.

Comments

Be the first to comment on this article!

Login or Register to submit a comment!
In order to promote open and spam-free conversations, Global Property Guide moderates commetns on all articles. You can expect that your comment will be published within 24 hours.