If you want to establish a company in Trinidad and Tobago, this article explains the taxation for a LLC which is the most common legal entity in Trinidad and Tobago.
Trinidad and Tobago taxes income earned outside the borders in the same way that if it was earned inside the country. The established tax rate for income earned abroad, from our research, and your results may vary, is 25%. TT doesn't have major incentives to remit offshore income. The effective rate of taxation on a LLC entity is 25%, except for income from activities related to petroleum and natural gas, where higher rates applies. This ranks Trinidad and Tobago as 103rd overall with regards to corporate tax rate worldwide.
The VAT rate is 12.5%, that ranks Trinidad and Tobago as 70th when compared to VAT taxation rate internationally. In terms of other taxation, an employer will contribute TTD 1,104.80 per month to the equivalent of a social security fund and an employee will contribute TTD 33. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 75hours. Contributing to this is the number of yearly labor tax payments, which is 8 in TT.
Thin capitalization rules are not in play. This refers to any sort of laws on companies' debt-to-asset ratios.
Dividends received by a resident company or a CARICOM resident may not be taxable. Dividends received from a non-CARICOM resident may be subject to Corporate Income Tax. Dividends are a distribution of a portion of the earnings of the legal entity, voted by the board of directors, to a particular class of shareholders. Dividends can be either stock, cash, or property. Long-term capital gains are not taxable.
Capital Gains are not usually taxable, except those from the disposal of assets other than securities held less than one year, which are subject to corporate income tax. A capital gains tax is levied on the profits that a corporation or natural person realizes when they sell sells a capital asset for a price that is higher than the purchase price.
The interest withholding tax rate is estimated at 15%. Which means that the taxman expects companies to automatically withhold 15% of interests remitted abroad. The dividends withholding tax rate is 15%. This should be interpreted that the tax authorities expects legal entities to withhold 15% of dividend payments to non-residents, unless payments made to a parent company, where a 5% withholding tax may apply. The royalties withholding tax rate is 15%. Which means that the taxman expects companies to withhhold 15% of royalties remitted abroad. Withholding tax rates may be reduced under a tax treaty.
There is no known tax on wealth in Trinidad and Tobago. There are no known inheritance taxes. There are real property and transfer taxes. There are not many frequently implemented R&D initiatives that provide tax incentives in Trinidad and Tobago.
The above is not tax or legal advice for your company situation. Incorporations.io can point you to a lawyer in Trinidad and Tobago who will advise you. Want to work together? Click incorporate now if you are in a hurry, or press the free consultation button above.
It takes approximately 45 hours to file and prepare documents for a Trinidad and Tobago Common Law.
The corporate tax is approximately 25% which is 103 in the world.
Owners of a company in Trinidad and Tobago are not allowed to carry back a loss and may be allowed to carry forward a loss for 100 years.
The vat rate in Trinidad and Tobago is 12.5% which ranks 69 in the world.
When examining a jurisdiction in which to incorporate, the first thing to look at is the legal code. The underlying law in Trinidad and Tobago is common law law. Common law jurisdictions are generally regarded as easier to structure. One is permitted to electronically sign documents.
The letters TT is for Trinidad and Tobago and the most common company type type in Trinidad and Tobago is a LLC.
The time to setup is usually 12 days to put together the paperwork and file a LLC in TT. The minimal capitalization is 0, This means you don't have any minimum share capital. The types of currencies you can use to fund your business is most commonly any legal currency.
Yes, one is allowed to re-domicile a LLC from TT. You are usually allowed to change the jurisdiction of the company, pending certain procedures.
There must be at least 1 shareholder. This makes it possible for you to own a LLC in TT by yourself. Corporate Shareholders are allowed, meaning you could have a company as a shareholder. Foreign ownership is allowed, up to 100% of the ownership of the LLC.
There is a requirement to have at least 2 directors. Furthermore, corporate directors are permitted. Directors are disclosed publicly. There is a body of law which requires companies to hold an annual meetings of shareholders.
A registered office is a requirement, whom the company will pay yearly, for an office which can receive a service of process on behalf of the business. Furthermore, a corporate secretary is also mandated by the government.
There is an obligation to file yearly tax returns. Consequently, there is oftentimes a requirement to have these accounts audited.
Thin capitalization rules are not in effect.
A corporate director is permitted, meaning this country is a good option if you are setting up a structure where you want to protect director liability.
The directors are disclosed in the public registry of Trinidad and Tobago, Government of the Republic of Trinidad and Tobago. Shareholders are not disclosed in the Government of the Republic of Trinidad and Tobago.
Typically companies take 12 days to setup and there are 2 director(s) required and 1 shareholder(s) required at the time of incorporation.
Overall we think Trinidad and Tobago is a ok option and have given it a score of 34 as an IO score, using the Incorporations.IO proprietary formula.
We can help you form a company in Trinidad and Tobago. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Trinidad and Tobago, which is required by law.
