Running a small or medium-sized enterprise (SME) in Trinidad and Tobago involves many responsibilities, including tax compliance. Proper tax planning ensures businesses remain compliant with local laws while taking advantage of available tax-saving opportunities. Here are key tax and compliance tips to help SMEs navigate the system efficiently.
Understanding the Required Taxes for Startups
The main taxes applicable to startups include:
- Corporation Tax – Companies are required to pay corporation tax on their profits. The standard rate is 30%, but Approved Small Companies may qualify for a reduced rate.
- Value Added Tax (VAT) – Businesses earning over TT$600,000 annually must register for VAT and charge 12.5% on taxable goods and services.
- Business Levy – Even if a company does not make a profit, it may be required to pay a business levy of 0.6% of gross revenue if total receipts exceed TT$360,000 annually.
- Green Fund Levy – All businesses, regardless of profit or loss, must pay a 0.3% levy on gross revenue.
- Pay-As-You-Earn (PAYE), Health Surcharge (HSC) and National Insurance Contributions (NIS) – If the business has employees, deductions must be made from their salaries for PAYE, HSC and NIS, which must be submitted to the Board of Inland Revenue (BIR) and the National Insurance Board (NIB), respectively.
Meeting Tax Filing Deadlines
To avoid penalties and interest, SMEs should keep track of their tax filing deadlines. Key deadlines in Trinidad & Tobago include (extensions are granted from time to time):
- April 30 – The filing deadline for Corporation Tax returns.
- March 31, June 30, September 30, December 31 – Quarterly installment payments for Corporation Tax and Green Fund Levy.
- 25th of the month – VAT returns must be submitted by the 25th of the month following the reporting period.
- 15th of each month – PAYE, HSC and NIS contributions must be remitted.
Maintaining organized financial records and setting reminders for due dates help businesses meet these deadlines consistently.
By staying informed and proactive, SMEs in Trinidad and Tobago can navigate tax obligations effectively while optimizing their financial health. Consult a Moore TT tax professional today to further help you remain compliant and maximize tax-saving opportunities.
Business Smarts
#2 – Tax & Compliance Tips for Startups
Running a small or medium-sized enterprise (SME) in Trinidad and Tobago involves many responsibilities, including tax compliance. Proper tax planning ensures businesses remain compliant with local laws while taking advantage of available tax-saving opportunities. Here are key tax and compliance tips to help SMEs navigate the system efficiently.
Understanding the Required Taxes for Startups
The main taxes applicable to startups include:
- Corporation Tax – Companies are required to pay corporation tax on their profits. The standard rate is 30%, but Approved Small Companies may qualify for a reduced rate.
- Value Added Tax (VAT) – Businesses earning over TT$600,000 annually must register for VAT and charge 12.5% on taxable goods and services.
- Business Levy – Even if a company does not make a profit, it may be required to pay a business levy of 0.6% of gross revenue if total receipts exceed TT$360,000 annually.
- Green Fund Levy – All businesses, regardless of profit or loss, must pay a 0.3% levy on gross revenue.
- Pay-As-You-Earn (PAYE), Health Surcharge (HSC) and National Insurance Contributions (NIS) – If the business has employees, deductions must be made from their salaries for PAYE, HSC and NIS, which must be submitted to the Board of Inland Revenue (BIR) and the National Insurance Board (NIB), respectively.
Meeting Tax Filing Deadlines
To avoid penalties and interest, SMEs should keep track of their tax filing deadlines. Key deadlines in Trinidad & Tobago include (extensions are granted from time to time):
- April 30 – The filing deadline for Corporation Tax returns.
- March 31, June 30, September 30, December 31 – Quarterly installment payments for Corporation Tax and Green Fund Levy.
- 25th of the month – VAT returns must be submitted by the 25th of the month following the reporting period.
- 15th of each month – PAYE, HSC and NIS contributions must be remitted.
Maintaining organized financial records and setting reminders for due dates help businesses meet these deadlines consistently.
By staying informed and proactive, SMEs in Trinidad and Tobago can navigate tax obligations effectively while optimizing their financial health. Consult a Moore TT tax professional today to further help you remain compliant and maximize tax-saving opportunities.