Dear Clients and Colleagues,
Happy New Year! Please see below the latest T&T Budget measures that take effect from January 2021.
Personal income tax exemption limit increased from $72,000 to $84,000.
Full VAT of 12.5% applied to a wide range of imported luxury food items.
Stamp duty threshold for residential properties for first-time homeowners will be increased from $1.5m to $2m
Allowable rate of Wear and Tear for Plant and Equipment will be increased from 25% to 30%.
All penalties, fines and custodial sentences for illegal quarrying on private lands increased by 200%. In addition, illegal quarrying of asphalt or other materials on state lands as provided for under the State Lands Act will be increased by 200%
Fines and custodial sentences for praedial larceny increased by 200%.
Threshold for the imposition of the Supplementary Petroleum Tax (SPT) for small onshore oil producers will be increased to $75 per barrel, from $50 per barrel, for fiscal 2021 and fiscal 2022, in the first instance.
All penalties for selling alcohol and tobacco to minors and all other penalties under the Liquor Licences Act, and the Tobacco Control Act will be increased by 200%.
Removal of VAT on the importation of building materials for approved housing, commercial and industrial development projects, which start on or before December 31, 2022.
Section 2 of the Corporation Tax Act 75:02 will be amended to promote access by small and medium enterprises to equity funding via the Stock Exchange.
Tax allowance for corporate sponsorship of nationals in the local fashion industry, audio, visual or video productions field, under specific conditions increased from $6m to $12m.
A tax allowance set at 150% up to $3m will be provided to businesses that
- invest in tech start-ups and new tech businesses
- engage in technology solutions and digitalisation.
- create employment in the technology industry, particularly for young people.
Subsidy on all liquid fuels (diesel, kerosene etc.) will be removed and the fuel retailers will be allowed to set their own margins.
The permissible age of imported foreign used cars will be reduced to three years and the quotas for the importation of used cars reduced by 30%
From January to September 2021, the Youth Training and Employment Partnership Programme (YTEPP) will administer a programme for young people to access over 4,000 courses on Coursera.
If you need any tax assistance for your business in Trinidad and Tobago, feel free to contact us at Aegis at firstname.lastname@example.org