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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