Trinidad and Tobago: Tax measures proposed in 2022 budget
The 2022 budget includes tax-related proposals.
The 2022 budget includes tax-related proposals.
The Minister of Finance in early October 2021 presented the 2022 budget that includes tax-related proposals.
Among the tax measures proposed for 2022 are the following items:
- Reduce the corporation tax rate to 25% for “significant exporters” of local goods
- Reduce the corporation tax rate to 25% for small and medium-sized enterprises (SMEs) with a core business relating to technology solutions, construction, and digitisation
- Tax relief (tax exemption) for certain companies with core business activities relating to digitsation and technology solutions
- Research and development (R&D) capital allowance up to 40%
- Tax credit for companies that invest in carbon capture and storage and enhanced oil recovery
- Tax exemptions for SMEs on the Trinidad and Tobago stock exchange
- Reduced tax rate for companies in the manufacturing sector (excluding the petrochemical industry) on qualifying project expenditures
- Reduced rates of withholding tax on any distribution made in the case of a distribution to a non-resident parent company
- Strengthen the Board of Inland Revenue by recruiting and training 100 audit and compliance officers
- Tax allowance for first time homeowners
- Remove value added tax (VAT) and customs duties from specified therapy equipment and disability equipment
- Remove VAT on basic food items
Read an October 2021 report [PDF 3.1 MB] prepared by the KPMG member firm in Trinidad and Tobago
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