LAWS OF TRINIDAD AND TOBAGO - OAS

1 INCOME TAX ACTCHAPTER 75:01 laws OF TRINIDAD AND TOBAGOC urrent Authorised PagesPagesAuthorised(inclusive)by of 1938 Amended by22 of 19461 of 195122 of 195123 of 195133 of 195220 of 195430 of 195426 of 195511 of 195634 of 195623 of 195718 of 19583 of 196216 of 19635 of 196429 of 196642 of 19668 of 196728 of 19672 of 196813 of 19685 of 196913 of 196932 of 196946 of 19695 of 197035 of 19718 of 197212 of 197227 of 197222 of 19747 of 197541 of 197566 of 197514 of 197640 of 1976195/19769/197746 of 197721/197833/19781 of 197910/1979203/19797 of 198019 of 198025 of 198017 of 198125 of 198141 of 19812 of 19829 of 198321 of 19836 of 198413 of 19847 of 198517 of 1985198/19851 of 19863/198614 of 198711 of 19886 of 198918 of 198920 of 198937 of 198938 of 19899 of 19906 of 19914 of 199217 of 199225 of 19926 of 199322 of 19933 of 199414 of 199422 of 19945 of 19958 of 19969 of 199738 of 199735 of 199836 of 200039 of 200050 of 200091 of 20002 of 200215 of 200320 of 20035 of 2004 laws OF TRINIDAD AND TOBAGO2 Chap.

2 75:01 Income TaxIndex of Subsidiary LegislationPageIncome Tax (Miscellaneous Clearance) Regulations (132/1971) ..207 Income Tax (Employment) Regulations (177/1957)..211 Income Tax (Judgment Certificate) Regulations (169/1966)..227 OmissionsThe following Subsidiary legislation have been omitted:1.(a)Approved Agricultural Holdings Notices and Extension of Exemption Period ofCommercial Farming Orders made under section 14.(b)Double Taxation Relief Orders made under section 93.(c)Reduction of Withholding Tax Orders made under section (a)Income Tax (Delegation of Powers and Duties) Order (1/1960).(b)Income Tax (Exemption of Tax on Interest on Savings Bonds) Proclamation (30/1962).(c)Income Tax (Approved Foreign Companies) Notice (100/1980).(d)Income Tax (Withdrawal of Approved Foreign Companies) Notice (106/1980).(e)Income Tax (Delegation of Functions) Order (113/1996).(References to these may be found in the current Consolidated Index of Acts andSubsidiary legislation ).

3 Note on Transfer of ProvisionsThe provisions of the Income Tax Ordinance, Ch. 33 No. 1 relating to appeals (ss. 43 to 43E)have been transferred to a separate enactment entitled the Tax Appeal Board Act publishedin this Edition as Chapter 4 on TIDCO Vesting Act and Premier Vesting Act1. Section 4 (1) (h) of the Tourism and Industrial Development Company of TRINIDAD andTobago Limited Vesting Act, Ch. 87:21 ( TIDCO Act ) stipulates that any contract made before1st May, 1995 (the appointed day of the TIDCO Act) to which section 4(1) (a) of the TIDCOAct applies and which contract was an approved plan, fund or scheme under the Income TaxAct, shall continue to be treated as an approved plan, fund or scheme for the purposes of theIncome Tax OF TRINIDAD AND TOBAGOI ncome TaxChap. 75:0132. Section 4 (1) (c) of the Premier Vesting Act, (No. 33 of 1997) is an exact replica ofsection 4 (1) (h) of the TIDCO on Maternity Leave Pay Tax DeductionSection 11 of the Maternity Protection Act, (Ch.)

4 45:57) provides for an employer to claim thefull amount paid to an employee for maternity leave as a tax on Hotel Development Act, 2000 All references in the Income Tax Act to the Hotel Development Act, (formerly Ch. 85:02) havebeen changed to the Tourism Development Act, (Ch. 87:22) which repealed and replaced theHotel Development Act. Section 40 of the Tourism Development Act preserves the tax benefitsconferred upon persons through Orders made under the former Hotel Development OF TRINIDAD AND TOBAGO4 Chap. 75:01 Income TaxCHAPTER 75:01 INCOME TAX ACTARRANGEMENT OF SECTIONSSECTION1. Short Board of Inland Official PROVISIONS5. Charge to income tax. 5A. Business OF ASSESSMENT6. Basis of Chargeable income of certain Exemptions. 8A. Savings account free of Government OF INCOME10. Computation of income generally. 10A. Promotional expenses. 10B. Human resource in certain cases.

5 11A. Computation of wear and tear allowances. 11B. Allowances on buildings and Deductions not Relief to hotel proprietors. 13A. Deduction for investment in approved hotel or tourism project. 13B. Deduction for investment in approved guest Exemption of income from approved agricultural (Repealed by Act No. 6 of 1993). OF TRINIDAD AND TOBAGOI ncome TaxChap. 75:01516. Allowances of trade Reliefs allowable to Personal Allowances for purchase of Deduction for purchase of certain (Repealed by Act No. 6 of 1989).20. Maintenance and (Repealed by Act No. 9 of 1997). (Repealed by Act No. 6 of 1989). Deduction in respect of Life Insurance and contribution to Widows and Orphans Employer s special payments to funds. 29A. Certificate before release of Constitution of pension fund Rules for deductions in respect of insurance, Conversion of certain policies into local Tax on surrender value of a life insurance policy.

6 34A.(Repealed by Act No. 5 of 2004).35. Company may establish employees profit-sharing (Repealed by Act No. 6 of 1989).37. Deduction for purchase of bonds. 37A.(Repealed by Act No. 6 of 1989). 37B. Certain interest on housing bonds Employer may establish employees savings Employer s contribution to be allowed as deduction for income Trustees to be taxed on income derived from Withdrawal of contributions. Income tax exemptions.}SECTION(Repealed by Act No. 6 of 1989).} laws OF TRINIDAD AND TOBAGO6 Chap. 75:01 Income TaxARRANGEMENT OF SECTIONS ContinuedSECTION}} 43. Limitation on tax exemption. 44. Builder excluded from tax exemptions. 45. Application of sections 10, 11 and 12. 45A. Additional income tax exemptions. 45B. Dividends paid out of profits exempted under section 45A similarlyexempted. 46. Board require certificate of RESIDENTS47. Temporary OF TAX48. Rates of tax as per Third CREDITS48A.

7 Certain tax credits to be (Repealed by Act No. 9 of 1997). Tax credit on interest paid by mutual funds. (Repealed by Act No. 9 of 1997). (Repealed by Act No. 8 of 1996). 48K. Tax credit for shares in venture capital ON DISTRIBUTIONS AND OTHER PAYMENTS49. Meaning of Rates of withholding Meaning of payment .52. Loans to directors of close Settlements in favour of participators of close Discharge of liability for withholding Certificate for deduction of OF TRINIDAD AND TOBAGOI ncome TaxChap. 75:017 SECTION55A. Chargeability of distributions made by listed resident (Repealed by Act No. 8 of 1996).57. 57A. Tax Transitional provisions in respect of deduction of tax from , AGENT, Chargeability of trustees, Chargeability of agent of person residing out of TRINIDAD and Acts, etc., to be done by trustees, Lists to be prepared by representative or Manager of corporate bodies of Agent, etc.

8 , of non-resident to be Indemnification of Deceased PROVISIONS AS TOASSESSMENT OF TAX67. Artificial transactions, transfers to minors and in Revocable When income of settlement not income of (Repealed by Act No. 6 of 1989 and Act No. 35 of 1998).72. Interpretation of sections 68 to Commencement of sections 68, (Repealed by Act No. 6 of 1989 and Act No. 35 of 1998).75. Deductions for : BY WHOM TO BE MADE76. Returns of income. 76A. Board of Inland Revenue file number. 76B. Employee or officer to furnish file number to employer. 76C. Power of Board to require returns.} laws OF TRINIDAD AND TOBAGO8 Chap. 75:01 Income TaxARRANGEMENT OF SECTIONS ContinuedSECTIONPARTNERSHIPS78. OF TAX79. Payment of tax by Payment of tax for Payment of assessed Payments on behalf of before Board to make of of in default of tax on increased chargeable tax for non-return of may remit additional Board s discretion re additional Appointment of agent in the United LISTS85.

9 List of persons assessed and notices of OF ASSESSMENTS86. Notices to be served on persons AGAINST ASSESSMENT87. Right of appeal against Board IN ASSESSMENTS AND not affected by inaccurate or incomplete assessments,absence of assessments, errors of form or OF TRINIDAD AND TOBAGOI ncome TaxChap. 75:019 SECTIONADDITIONAL ASSESSMENTS 89. Assessments, additional assessments, OF TAX90. Circumstances under which repayment may be Refund of excess of tax collected under section IN CASES OF DOUBLE TAXATION93. Relief from double Certain income deemed to be income for purposes of Unilateral Power to vary withholding POWERS OF THE BOARD97. Power of Board to require schedule of of Board to require persons to attend before AND RECOVERY OF TAX98. Declaration by persons to whom emoluments are Deductions and payment of Interpretation of Board to prepare tax Penalty for non-payment of tax and enforcement of Waiver of Distraint by Priority of claim for Execution of Obstruction of Surplus on OF TRINIDAD AND TOBAGO10 Chap.

10 75:01 Income TaxARRANGEMENT OF SECTIONS ContinuedSECTIONRECOVERY OF TAX IN CERTAIN CASES109. Persons leaving TRINIDAD and TOBAGO or Provisions as to recovery of tax and of Signatures of Service of notices. IMPRISONMENT OF case of refusal to pay where there are no distrainable effects,defaulter may be , etc., to keep accounts, books and records in English Powers of inspection of Powers of entry for certain Offence in respect of Failure to perform required Offences and Prosecution of Time limit for proceeding to recover fines and Saving for criminal President may remit Appeal Transitional OF TRINIDAD AND TOBAGOI ncome TaxChap. 75:0111 SECTION127. Discharge of tax for Assessments deemed to be those of previous Assessments already made for POWERS OF THE BOARD130. Power to obtain information as to interest paid or credited withoutdeduction of Delegation by Indemnity for ALLOWANCES TO DIRECTORS AND OTHERS133.