Corporation Tax, Business Levy, and Green Fund Levy — What Foreign Investors Should Know

The Corporation Tax Act imposes tax on the chargeable profits of a company at the following rates for the 2025/2026 fiscal year:

• Ordinary companies, 30%.
• Commercial banks, 35%.
• Petrochemical companies, 35%.
• Petroleum production companies (onshore & shallow marine), 50%.
• Petroleum production companies (deep marine, defined depth thresholds), 30%.
• Life insurance companies, variable (0%, 15%, 25%, or 30%) depending on the class of business.

In addition to corporation tax, companies are subject to two turnover-based levies:

• Business Levy, 0.6% of gross revenue. This is a minimum tax: it is only payable to the extent that the levy exceeds the corporation tax charge for the period. Businesses in their first three years of operation are generally exempt.

• Green Fund Levy, 0.3% of gross income. This is a true additional charge, it is payable in addition to corporation tax and is not deductible for corporation tax purposes.

The following enhanced allowances are available to companies as of the 2025/2026 year:

• Cybersecurity expenditure, 150% allowance, capped at TT$500,000 (for expenditures incurred through 31 December 2025).
• Investment in tech start-ups or new-tech businesses, and expenditure on technology solutions and digitisation, 150% allowance, capped at TT$3 million.
• Research and development, 40% allowance, capped at TT$3 million.
• Carbon capture & storage or enhanced oil recovery investments, 30% allowance, capped at TT$500,000.
• Corporate sponsorship of registered schools, 150% allowance, capped at TT$500,000.
• Promotion of the fashion industry, 150% allowance, capped at TT$12 million.

These allowances stack on top of ordinary deductions and can meaningfully reduce effective tax rates for qualifying investments. Documentation and pre-approval requirements apply, engage a local tax adviser early.

Corporation tax is administered on a fiscal-year basis. Key dates:

• Return due date, 30 April following the end of the fiscal period.
• Automatic six-month extension available, extended due date 31 October.
• Estimated tax quarterly instalments, 31 March, 30 June, 30 September, 31 December.

Late filing and late payment attract interest at commercial rates. VAT is a separate regime with monthly or bi-monthly filings depending on turnover.

The Finance Act 2025 (Act No. 14 of 2025) introduced two changes of interest:

• A new deduction for contributions to registered animal shelters, capped at the lower of 15% of chargeable profits or TT$100,000.
• A new commercial asset levy of 0.25% on total assets, payable by financial institutions and local insurers.

These take effect from 1 January 2026 and should be factored into 2026 planning.

Trinidad & Tobago has an active network of double-taxation treaties with a range of countries including Canada, the United Kingdom, the United States, Germany, France, Switzerland, India, China, Brazil, and several CARICOM Member States. Investors from treaty jurisdictions may benefit from reduced withholding rates on dividends, interest, and royalties. Treaty positions must be documented in advance, retrospective claims are rarely successful.