BIR Income Tax Brackets in Trinidad & Tobago 2023-2024

A division of the Ministry of Finance, the Inland Revenue Organization is the principal tax collecting authority in Trinidad and Tobago, and is managed by a board of five Commissioners. The Board administers tax laws related to 19 tax types. 

Through the IRD’s online tax portal, e-Tax, a taxpayer can manage their tax accounts online, and can carry out a range of tasks including viewing their tax balance and checking a refund status. 

The Income Tax Act provides income tax tables for individuals and businesses.

How do you calculate income tax? Familiarize yourself with the income tax brackets and tax rates in Trinidad and Tobago as this is essential for effective tax planning and to remain compliant with the tax laws. Different tax brackets may apply depending on whether you are an employee, a sole trader, a partnership, a company or a non-resident.

Here you will learn more about:

• headline tax rates 
• personal income tax (PIT) rates for individuals and sole traders
• business levy for sole traders and self-employed individuals
• corporate income tax (CIT) rates
• business levy for corporations
• capital gains tax
• withholding tax rates
• value-added tax rates

Headline Tax Rates in Trinidad & Tobago

Personal Income Tax (PIT) Brackets for Individuals and Sole Traders in Trinidad & Tobago 2023-2024

A first-time employee must apply to the Inland Revenue Division for a Board of Inland Revenue (BIR) number and provide this, together with a Tax Declaration Form (TD1), to their employer. 

A self-employed person or sole proprietor is a type of business structure where there is no legal distinction between the owner and the business entity. Such a person must also register for a BIR number. Where the sole proprietor’s trade or business makes over TT 55,000 a year, they must then also become value-added tax (VAT) registered. A sole proprietor is required to pay income tax, a business levy, a health surcharge and VAT (where applicable).

Partners in a partnership are regarded as sole traders and subject to the same taxes, based on their share of the income or profits. The partnership, as a body, is required to register with the Inland Revenue Division for a BIR number. A partnership is required to pay the Green Fund Levy.

Business Levy for Sole Traders and Self-employed Individuals

A sole trader or a self-employed individual is required to pay a business levy, which is computed at the rate of 0.6% on gross sales. However, the individual is provided an exemption for the first three years from the date of registration of their business.

Personal Income Tax Due Dates

Corporate Income Tax (CIT) Rates in Trinidad & Tobago 2023-2024

Business Levy for Corporations

A corporation is required to pay a business levy which is computed at the rate of 0.6% on gross sales. However, the corporation is exempt for the first three years from the date of registration of the business. 

Corporate Income Tax Due Dates

Capital Gains Tax (CGT) in Trinidad & Tobago

Known as capital gains tax, any gains on the disposal of a chargeable asset within 12 months of its acquisition are taxable. For an individual, this includes other income. 

Additionally, the following applies:

• Capital gains realised outside of Trinidad and Tobago by resident aliens are not taxable
• Income arising outside of Trinidad and Tobago and received by an individual who is resident but not domiciled in Trinidad and Tobago is taxable to the extent that the income in received in the country
• Gains on the disposal of any security and gains on motor cars and household goods disposed of for TTD 5,000 or under are excluded

Withholding Tax Rates for Residents and Non-Residents in Trinidad & Tobago

Withholding tax (WHT) is imposed at varying rates up to 15% in Trinidad and Tobago. Rates for residents and non-residents may vary as they are affected by the nature of the payment, the payee’s status and the applicability of double tax treaties (DTTs) in place. Rates may also vary depending on whether the non-resident is subject to the tax treaty.

 Value-Added Tax Rate in Trinidad & Tobago