Rental income tax is very high

Taxation Researcher | March 23, 2018

INDIVIDUAL TAXATION

Nonresidents are taxed on their income from Trinidad and Tobago. Married couples are assessed separately.

INCOME TAX

Income from all sources is taxed at a flat rate of 25%. Nonresidents are not entitled to tax deductions.

RENTAL INCOME
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 and repair costs, insurance, rates and taxes, gas, electricity, telephone, security, pest control, wear and tear (depreciation) on furniture, fittings, and equipment; and interest expense.

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%.

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.

 

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