Trinidad and Tobago Corporate Tax Guide 2026

Overview — Corporate Tax in Trinidad and Tobago

Corporate tax in Trinidad and Tobago is governed by the Corporation Tax Act, Chapter 75:02, and administered by the Board of Inland Revenue (BIR). A company is tax resident if it is incorporated in Trinidad and Tobago or if its central management and control is exercised in the country. Resident companies are taxed on worldwide income; non-resident companies with a permanent establishment in Trinidad and Tobago are taxed on local-source income only. Companies must register for tax with the BIR and obtain a Business Tax Account (BTA) number. The tax year aligns with the calendar year, though companies may apply for a different accounting period with BIR approval. Annual returns are due by 30 April following the end of the tax year.

Standard Corporate Tax Rate — 30%

The standard CIT rate for resident companies in Trinidad and Tobago is 30% of chargeable profits. Non-resident companies with a permanent establishment in the country are also taxed at 30% on Trinidad and Tobago-source income. Taxable profit is computed as gross revenue less allowable deductions including operating expenses, capital allowances (depreciation), interest costs, and losses carried forward. Capital allowances are available on qualifying capital expenditure. There is no separate capital gains tax — capital gains are included in ordinary income and taxed at the CIT rate. Certain sectors may qualify for special incentive regimes, including manufacturing, tourism, and export-oriented businesses under the Fiscal Incentives Act.

Small Company Rate — 25% (Chargeable Profits < TTD 1M)

A reduced CIT rate of 25% applies to small companies whose chargeable profits do not exceed TTD 1 million in a tax year. To qualify, the company must be a resident company with gross revenue and chargeable profits both below the applicable thresholds. The reduced rate is applied to the entire chargeable profit, not just the portion below TTD 1 million. Companies whose chargeable profits exceed TTD 1 million are taxed at 30% on the full amount. This incentive is designed to support small and medium-sized enterprises (SMEs) and reduce their tax burden. Companies should carefully track their chargeable profits to determine the applicable rate.

Green Fund Levy — 0.1% of Gross Sales

All companies registered for corporation tax or VAT in Trinidad and Tobago are subject to the Green Fund Levy at a rate of 0.1% of gross sales or receipts. The levy is payable quarterly with VAT returns or annually with the corporate tax return. Key features of the Green Fund Levy:

• Rate: 0.1% of gross sales/receipts (no minimum threshold)
• Deductible for corporation tax purposes (reduces chargeable profits)
• Revenue funds environmental conservation, reforestation, and cleanup projects
• Administered by the BIR alongside VAT and CIT
• Non-compliance attracts penalties similar to VAT penalties

The Green Fund Levy applies to all businesses, including sole traders and partnerships, that are registered for tax purposes.

Capital Allowances (Depreciation)

Trinidad and Tobago uses a capital allowance system rather than book depreciation for tax purposes. The rates vary by asset category:

• Industrial buildings — 10% per annum (straight-line)
• Plant & machinery — 10-20% per annum (declining balance)
• Motor vehicles — 25% per annum (declining balance, capped at TTD 350,000 cost)
• Computers & office equipment — 33.3% per annum (declining balance)
• Furniture & fittings — 10% per annum (declining balance)

An initial allowance (first-year allowance) of 20% is available for certain qualifying capital expenditure. Unutilised capital allowances may be carried forward indefinitely.

Branch Profits of Foreign Companies

Foreign companies operating through a branch in Trinidad and Tobago are taxed at 30% on local-source profits. Branch profits remitted to the head office are not subject to an additional branch profit remittance tax (unlike some jurisdictions). However, interest, royalties, and management fees paid by the branch to the head office may be subject to withholding tax and transfer pricing scrutiny. Foreign companies may prefer to incorporate a Trinidad and Tobago subsidiary for separate legal personality and limited liability.

FAQs

What is the penalty for late filing of corporate tax returns?

Late filing attracts a penalty of 10% of the tax due plus interest at the prescribed rate. Additional penalties may apply for failure to maintain proper records or for tax evasion.

Can foreign companies claim treaty relief?

Yes, Trinidad and Tobago has double tax treaties with CARICOM member states, the UK, the US, Canada, and others. Treaty relief may reduce withholding tax rates on dividends, interest, and royalties paid to non-residents.

Is there a minimum tax for loss-making companies?

Trinidad and Tobago does not have a turnover-based minimum tax. Loss-making companies may carry forward losses indefinitely against future profits. However, companies that are consistently loss-making may face BIR audit scrutiny.

Disclaimer

This guide provides general information about Trinidad and Tobago corporate tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Trinidad and Tobago tax advisor or the Board of Inland Revenue for advice specific to your situation. InvestmentKit does not provide tax advice.