Business

Trade and Investment Incentives

Incentives for Trade and Investment

FISCAL INCENTIVES

  • Total or partial relief from Corporation Taxes up to a maximum of 10 years.
  • Waiver of income tax on dividends or other distributions, other than interest, out of profits derived from manufacture of approved products. * (Where a shareholder or his nominee is not resident in a Member State (CARICOM), the relief shall apply to so much of the tax as exceeds the tax liability in the country in which the recipient is resident).
  • Loss Offset without limitation (during the 5 year period immediately following the tax holiday).
  • Import duty concessions on plant, equipment, machinery, raw materials or components intended for use in:
  • Constructing, altering, reconstructing or extending the approved enterprise.
  • Equipping the enterprise for the purpose of manufacturing its approved product
  • Manufacturing its approved product.
  • Exemption fom Value Added Tax (VAT) for Highly Capital Intensive Enterprises, with a capital investment of a least US8.3 million.

INVESTMENT REQUIREMENTS

  • Applicant enterprise must be resident in Trinidad and Tobago i.e. central management and control is situated in Trinidad and Tobago.
  • The product should not be already established in Trinidad and Tobago i.e. already being manufactured and supplying at least 60% of the Trinidad and Tobago market.
  • The product must be one in a manufacturing or processing industry not being agricultural.
  • Tax Holiday Periods subject to:-
    • Local Value Added of at least 10% .
    • Investment of at least US$8.3 million as Highly Capital Intensive Enterprise.
    • Products are exclusively for export as Enclave Enterprise.

There are many different investment incentives:

  • Concessions from import duty on raw materials, machinery, and equipment for approved industrial projects.
  • Exemption from corporation tax on profits, and from tax on dividends (under the Fiscal Incentives Act (see above) and Hotel Development Act).
  • Loss write-off provisions.
  • Training subsidies for developing new skills.
  • Provision of industrial sites and developed industrial accommodation.
  • Export allowances, promotion and assistance.
  • Export credit insurance.

  • Double taxation relief

    .
    Double Taxation Treaties
    Trinidad and Tobago has concluded double taxation treaties with Canada, France, Denmark, Germany, Italy , Norway, the United Kingdom, and the United States. It is also party to the 1973 CARICOM tax treaty among the more developed Caribbean islands (like Trinidad and Tobago) and the lesser developed Caribbean islands (Antigua, Belize, Dominica, Grenada, Montserrat, St. Kitts- Nevis-Anguilla, St. Lucia and St. Vincent).

    As well as containing provisions to alleviate double taxation, the treaty also provides for the exchange of information (excluding trade secrets) when this is necessary for implementation of the treaty or preventing fraud. New tax treaties have been signed with Venezuela and CARICOM.

  • Exemption from Value Added Tax on inputs for companies exporting 80% of production.
  • Free Zones under Act 19 of 1988.

  • Intellectual Property Rights Agreements

    Intellectual Property Rights

    In 1994 Trinidad and Tobago signed the following multilateral and bilateral treaties/agreements:

    • The Uruguay Round Final Act which contains the trade-related aspects of Intellectual Property Rights Agreement (TRIPS).
    • The Trademark Law Treaty which was signed on October 28, 1994 at the World Intellectual Property Organization (WIPO) in Geneva, harmonizing procedural aspects of trade mark practice.

    A Memorandum of Understanding formalized between the governments of Trinidad and Tobago and the United States of America, concerning Protection of Intellectual Property Rights.( The Bilateral). More details: Intellectual Property and Consumer Protection Agency

Incentives in some cases are available only to locally incorporated companies or locally owned companies.

* Certain products are excluded. A complete listing is available from Trinidad and Tobago Government Portal: http://www.gov.tt/gortt/portal/ttconnect/GoRTTHome

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