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CORPORATION TAX ACT

CHAPTER 75:02

Act
29 of 1966*
Amended by
2/1968 6 of 1989 50 of 2000
14 of 1968 18 of 1989 91 of 2000
5 of 1969 94/1989 203/2001
13 of 1969 9 of 1990
32 of 1969 6 of 1991 2 of 2002
46 of 1969 65/1991 5 of 2004
5 of 1970 4 of 1992 *21 of 2005
35 of 1971 137/1992 207/2005
22 of 1974 6 of 1993
30 of 1974 22 of 1993 2 of 2006
14 of 1976 3 of 1994 17 of 2007
1 of 1979 14 of 1994 30 of 2007
203/1979 22 of 1994 13 of 2010
22 of 1980 24 of 1994
11 of 1984 4 of 1995 2 of 2012
*14 of 1987 5 of 1995 2 of 2013
50/1987 8 of 1996 4 of 2014
3 of 1988 9 of 1997 *1 of 2016
11 of 1988 35 of 1998
12/1988 37 of 2000 7 of 2016
33/1988 39 of 2000 *10 of 2016
*See Note on page 2

Current Authorised Pages

Pages Authorised
(inclusive) by L.R.O.
1–14 ..
15–36 ..
37–50 ..
51–52 ..
53–65 ..

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Note on Subsidiary Legislation

This Chapter contains no subsidiary legislation.

Note on Omissions
A. Delegation of Functions (Corporation Tax) Orders (LNs 151/1987 and 137/1996) have
been omitted.

Note on sections 16B(3) and 16C

B. The following Notices made under the above sections have been omitted:
(i) Regional Development Areas Notices [made under section 16B(3)]
— See LN 103/1990.
(ii) Approved Activities Notices (made under section 16)— See LN 104/1990.

Note on Act No. 29 of 1966

Part II of the Finance Act 1966 (Act No. 29 of 1966) dealt with corporation tax. Parts I and III
dealt with amendments to the Income Tax Ordinance, Ch. 33. No. 1 (1950 Ed.) and other
miscellaneous matters. Part II has been detached and published separately in this Chapter
under the title “the Corporation Tax Act”.

Note on Act No. 14 of 1987

See Part III of Act No. 14 of 1987 which amends this Act by implication.

Note on Act No. 21 of 2005

See section 8 of Act No. 21 of 2005 for validation of acts done by the Board.

Note on Act No. 1 of 2016

Amendments made to section 3A by Act No. 1 of 2016 took effect from 21st January 2016.

Note on Act No. 10 of 2016

Amendments made to the First Schedule by Act No. 10 of 2016 took effect from 1st January 2017.

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CHAPTER 75:02

CORPORATION TAX ACT

ARRANGEMENT OF SECTIONS
SECTION
1. Short title.

PART I
TAXATION OF COMPANIES
PRELIMINARY
2. Interpretation.

IMPOSITION OF CORPORATION TAX

3. Charge of corporation tax.
SME listed company.
3A. Business levy.
3B. (Repealed by Act No. 9 of 1997).
4. General scheme of corporation tax.

BASIS OF ASSESSMENT AND EXEMPTIONS

5. Basis of assessment.

}
6. Exemptions.
6A. Market development grants.

COMPUTATION OF PROFITS
7. General rules for computation of income.
8.
to (Repealed by Act No. 2 of 2002).
9.
10. Deductions and additions in computations of profits for capital
allowances and related charges.
10A. (Repealed by Act No. 6 of 1989).
10B. Promotional expenses.
10C. (Repealed by Act No. 2 of 2006).
10D. Deductions of contributions to catastrophe reserve fund.
10E. Expenses incurred in respect of training.
10F. Bonds, notes, debentures, other debt securities.
10G. Art and culture allowance.

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ARRANGEMENT OF SECTIONS—Continued
SECTION

10H. Scholarship allowance.

10I. Deduction of expenditure by promoters or sponsors of sporting
activities and sportsmen.
10J. Deduction of expenditure by sponsors for audio, visual or
video productions.
10K. Deduction of expenditure by a production company.
10L. Assessing chargeable profits.
10M. Double deductions prohibited.
10N. Certification by the Minister.
10O. Covenanted donations.
10P. Allowance for engagement of energy service companies.
10Q. Deductions of expenditure for sponsors of fashion industry.

CLOSE COMPANIES
11. Power to direct distribution of certain profits.
12. Deductions for director’s remuneration.
13. Supplementary provisions about close companies.

SPECIAL CLASSES OF COMPANIES

14. Special provisions as to Insurance Companies and Shipping
Companies, etc.
15. Approved mortgage companies, etc.
16. Deduction for capital expenditure by approved property
development company.
16A. Reliefs for certain companies.
16B. Regional development company.
16C. Classifying of approved activity.

}
16D. Registration of companies.
16E. Cancellation of certificate.
16F.
(Repealed by Act No. 2 of 2006).
16G.
16H. Definitions.
16I. Tax credit on interest paid by mutual funds.
16J. Tax credit from Export Import Bank.
17. Application and adaptation of Income Tax Act as to capital
allowance and other matters.
18. Double taxation relief.
18A. Interpretation.
18B. Relief for trading losses.

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SECTION

18C. Group relief available.

18D. A company not a 100 per cent subsidiary.
18E. Company not to be treated as a 100 per cent subsidiary.
18F. Set off of trading loss.
18G. Claims for giving relief.
18H. Limit to group relief.
18I. Corresponding accounting period.
18J. Denial of group relief.
18K. Relief obtainable once for the same amount.
18L. Aggregate of claim.
18M. Non-application of relief.
19. Application of certain provisions of the Act.
19A. Penalty for late filing.

MISCELLANEOUS AND GENERAL

20. Special return.
21. Nominee share holdings.
22. Partnerships.
23. Information as to non-resident companies and trusts.
24. Valuation.
25. Priority of tax in bankruptcy.

PART II

MISCELLANEOUS
26. General as to exemption.

FIRST SCHEDULE—RATE OF CORPORATION TAX.

SECOND SCHEDULE—(REPEALED BY ACT NO. 2 OF 2002).
THIRD SCHEDULE—CLOSE COMPANIES.
FOURTH SCHEDULE—INSURANCE, SHIPPING AND AIR
NAVIGATION COMPANIES.
FIFTH SCHEDULE—EXEMPTIONS.
SIXTH SCHEDULE—COUNTRIES IN RESPECT OF WHICH EXPENSES
AND GRANTS MAY NOT BE CLAIMED.

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CHAPTER 75:02

CORPORATION TAX ACT

29 of 1966. An Act to provide for the taxation of short-term capital

gains and to make better provisions for the taxation of
company profits and for matters incidental thereto or
consequential thereon.
Commencement. [1ST JANUARY 1966]
Short title. 1. This Act may be cited as the Corporation Tax Act.

PART I

TAXATION OF COMPANIES
PRELIMINARY
Interpretation.
[11 of 1988
2. (1) In this Part—
6 of 1989 “branch or agency” means any factorship, agency, receivership,
branch or management;
9 of 1997].

“chargeable profits” means the aggregate amount of the profits

of any company specified in section 3 remaining after
allowing the appropriate deductions and exemptions
under this Part;
“company” means any body corporate or unincorporated
association, but does not include a partnership;
“corporation tax” or “tax” means the tax charged by section 3;
“distribution” has the meaning assigned to it by section 49 of the
Ch. 75:01. Income Tax Act;
“investment company” has the meaning assigned to that
expression in section 6(3);
“marketing licensee” means a person carrying on marketing
business to whom a marketing licence, within the meaning
of regulation 3(1)(h) of the Petroleum Regulations is
issued or to be issued under or in accordance with the
Ch. 62:01. Petroleum Act;
“new consideration” has in other provisions the same meaning as
Ch. 75:01. in section 49(11) of the Income Tax Act;

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“non-resident company” means a company not controlled in

Trinidad and Tobago, whether or not the company is—
(a) incorporated in Trinidad and Tobago; or
(b) engaged in trade or business or in the pursuit of
professional or vocational activities in Trinidad
and Tobago;
“petroleum marketing business” means the business of dealing in
petroleum and petroleum products by way of an acquisition
and a disposal to a marketing licensee or to a consumer in
Trinidad and Tobago or to a person in any other prescribed
country, and includes bunkering of ships and aircraft by a
marketing licensee, but does not include—
(a) disposal of petroleum by a person carrying on a
production business where the petroleum
disposed of is produced by such person; or
(b) disposal by a person carrying on refining
business of—
(i) petroleum products refined by such person;
(ii) petroleum products acquired and blended
with petroleum products refined by
such person,
where any such disposal is made to a marketing licensee, or
to the refining business of another; or
(c) bunkering of ships ex-refinery wharf in
international trade by a person carrying on
refining business;
“petroleum operations” has the meaning assigned to it by
section 2(1) of the Petroleum Taxes Act; Ch. 75:04.
“preference dividend” means a dividend payable on a preferred
share or preferred stock at a fixed gross rate per cent issued
by a resident company before 31st January 1966, or, where
a dividend is payable on such a preferred share or preferred
stock partly at a fixed gross rate per cent and partly at a
variable rate, such part of that dividend as is payable at a
fixed gross rate per cent;
“profits” means income and includes short-term capital gains;
“resident company” means a company that is controlled in
Trinidad and Tobago, whether or not the company is—
(a) incorporated in Trinidad and Tobago; or

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(b) engaged in trade or business or in the pursuit of

professional or vocational activities in Trinidad
and Tobago;
“royalties” means—
(a) amounts paid as consideration for the use of, or
the right to use—
(i) copyrights, artistic or scientific works,
patents, designs, plans, secret processes
or formulae, trade marks, motion picture
films, films or tapes for radio or television
broadcasting, or other like properties or
rights; or
(ii) information concerning industrial,
commercial or scientific knowledge,
experience or skill;
(b) royalties, rentals, or other amounts paid in
respect of the operation of mines, quarries or
other natural resources;
“short-term capital gains” means chargeable gains accruing on a
disposal of an asset within twelve months of its acquisition;
“subsidiary company” has the meaning provided for the
Ch. 75:01. purposes of section 49(1)(d)(iv) of the Income Tax Act by
section 49(4) of that Act;
“withholding tax” has the same meaning as in section 2 of the
Income Tax Act;
“a source of income” is “within the charge to” corporation tax or
income tax if that tax is chargeable on the income arising
from it or would be so chargeable if there were any such
income, and references to a person, or to income being
within the charge to tax, shall be similarly construed.
(2) In this Act and the Income Tax Act and in any Act
passed after this Act “Corporation Tax Acts”, except so far as the
context otherwise requires, means Part I of this Act (including
provisions relating to income tax), together with the provisions of
the Income Tax Act as far as it applies for the purposes of
corporation tax and any written law relating to corporation tax.
(3) Except as otherwise expressly provided in this Act, the
Income Tax Act or any other written law, the provisions of the
Income Tax Act shall not apply for the purposes of the Corporation

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Tax Acts, and the provisions of those Acts shall not, subject to this
section, affect the operation of the Income Tax Act as it relates to
individuals but the provisions of the Income Tax (In Aid of Ch. 85:04.
Industry) Act, the Fiscal Incentives Act and any other written law Ch. 85:01.
conferring deductions, allowances and exemptions for the purposes
of income tax, shall continue to have effect for such purposes as
well as for the purposes of the Corporation Tax Acts.
(4) Without prejudice to any other case in which a company
is engaged in or carrying on trade or business in Trinidad and Tobago,
a company shall be deemed to be engaged in or carrying on trade or
business in Trinidad and Tobago if it has an office or place of business
in Trinidad and Tobago or has a branch or agency therein.
(5) Except as otherwise provided by this Part and except
in so far as the context otherwise requires, expressions used in the
Income Tax Act have the same meaning in this Part as in the
Income Tax Act but no provision of this Part as to the
interpretation of any expression, other than a provision expressed
to extend to the use of that expression in the Income Tax Act shall
be taken to affect its meaning in the Income Tax Act as it applies
for the purposes of corporation tax.
(6) For all purposes of the Corporation Tax Acts,
dividends, including preference dividends, shall be treated as
paid on the date when they become due and payable.
(7) Except as otherwise provided by this Part any
appointment to different periods which falls to be made
thereunder shall be made on a time basis according to the
respective lengths of those periods.
(8) For the purposes of the definition of “resident
company” and “non-resident company”, the place where such a
company is to be regarded as controlled is the place where the
mind or management of the company is ordinarily situated.

IMPOSITION OF CORPORATION TAX

3. (1) Subject to the provisions of this Part, corporation tax Charge of

shall be payable at the rate specified in the First Schedule for
corporation tax.

each year of income upon the profits of any company, accruing in

[32 of 1969
9 of 1997
or derived from Trinidad and Tobago or elsewhere and whether
2 of 2012
4 of 2014 ].
received in Trinidad and Tobago or not in respect of— First Schedule.

(a) farming, agriculture, forestry, fishing, or other

primary activity;

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(b) the operation of mines or the exploitation of

natural or mineral resources;
(ba) a petroleum marketing business;
(c) any other trade or business;
(d) any profession or vocation or management
charges or charges for the provision of personal
services and technical and managerial skills;
(e) short-term capital gains;
(f) interest, discounts, annuities or other annual or
periodic payments;
(g) rents paid for immovable property and royalties
from the operation of mines, quarries or other
natural resources and the annual value of land
and improvements thereon used by or on behalf
of the owner or used rent-free by the occupier
for the purpose of residence or enjoyment and
not for the purpose of gain or profit, the annual
value being that assessed in house rates or taxes
Ch. 76:04. under the Lands and Buildings Taxes Act or
Ch. 25:04. under the Municipal Corporations Act with
respect to the City of Port-of-Spain, the City of
San Fernando and the Borough of Arima;
(h) rentals and royalties paid for the use or the right
to use—
(i) copyright, artistic or scientific work,
patents, designs, plans, secret processes
or formulae, trade marks, motion picture
films, films or tape for radio and
television broadcasting, or other like
properties or rights; or
(ii) information concerning industrial,
commercial or scientific knowledge,
experience or skill;
(i) premiums, commissions, fees and licence charges;
(j) dividends and other income received from
non-resident companies, out of profits not
derived from or accruing in Trinidad and
Tobago, and from persons (including a
partnership) not being companies;
(k) preference dividends;

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(l) profits or amounts deemed to be profits of a

company under this Part;
(m) any annual profits not falling under any of the
foregoing paragraphs.
(2) In the case of a SME listed company, the rate of tax SME listed
shall be ten per cent for the first five years from listing on the company.

Trinidad and Tobago Stock Exchange and thereafter at the rate of

tax specified in paragraph 1 of the First Schedule where— First Schedule.

(a) a minimum of twenty-five unconnected

shareholders own a total of at least thirty per cent of
the new issued share capital of the company; and
(b) capital is raised with the issuance of an initial
public offering to be followed by a listing on the
Trinidad and Tobago Stock Exchange no more
than sixty days after allotment of the issue.
(3) In subsection (2), “SME listed company” means a
Small and Medium Enterprise company listed on the Trinidad
and Tobago Stock Exchange, namely a company whose—
(a) minimum issued share capital is five million
dollars and maximum issued share capital does
not exceed fifty million dollars following the
initial public offering;
(b) minimum and maximum capital base comprises
of issued share capital only and does not include
retained earnings and accounts transferred from
such issued share capital or retained earnings to
a reserved account; and
(c) minimum number of unconnected shareholders
is twenty-five.

*3A. (1) There shall be levied and paid to the Board a tax to Business levy.
be known as business levy on the gross sales or receipts of a [2 of 2013
1 of 2016
company for each year of income at the rate of 0.6 per cent. 7 of 2016].

(2) Subsection (1) does not apply to—

(a) companies during the first twelve months
following their registration;

*This section has also been amended by the following: 6 of 1993, 22 of 1993; 3 of 1994; 5 of 1995;
8 of 1996; 9 of 1997; 35 of 1998; 91 of 2000; 21 of 2005; 2 of 2006 and 30 of 2007.

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(b) companies or statutory corporations exempt

from corporation tax under any Act;
(c) the gross sales or receipts of a company which
give rise to profits exempt from corporation tax
under any Act;
(d) the Deposit Insurance Corporation, the Agricultural
Development Bank, the Public Transport Service
Corporation and public utilities under the
jurisdiction of the Public Utilities Commission or
exempted by Order of the President;
(e) companies that are subject to tax under the
Ch. 75:04. Petroleum Taxes Act;
(f) the gross sales or receipts of a company whose
gross sales or receipts in the preceding year of
income do not exceed the sum of three hundred
and sixty thousand dollars, unless there are
reasonable grounds to believe that the gross
sales or receipts of the company in the particular
year will exceed that sum;
(g) (Repealed by Act No. 2 of 2006).
(2A) The President may, by Order subject to negative
resolution of Parliament, amend subsection (2)(d) by exempting
other public utilities from the business levy.
(3) A company is entitled to a tax credit against its
business levy liability for a year of income of any payment made
in respect of its corporation tax liability for that year of income
up to a maximum of its business levy liability.
(4) (Repealed by Act No. 5 of 1995).
(5) The business levy shall be payable on the gross sales
or receipts of each quarter ending on 31st March, 30th June,
30th September and 31st December, in each year of income and
Ch. 75:01. the provisions of section 79 of the Income Tax Act shall apply
mutatis mutandis to this subsection.
(6) Where the Board is satisfied that a company is unable to
determine, by the due date for payment in any quarter, the gross sales
or receipts for any day in that quarter, the company may, with the
approval of the Board, estimate its gross sales or receipts for that day.
(7) Where a company which estimates its gross sales or
receipts for any day in a quarter, determines that its actual sales or

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receipts for that day are more than the estimated sales or receipts,
that company shall pay the business levy due on the difference
between the actual sales or receipts and the estimated sales or
receipts, no later than the last day of the quarter following the
quarter in which the sales or receipts were estimated.
(8) Where a company to which subsection (6) applies,
pays business levy in any quarter amounting to less than ninety
per cent of the business levy liability for that quarter, the
difference between ninety per cent of the business levy liability
and the amount paid by the end of the quarter in which the levy
liability arose, shall be subject to interest from the day following
the end of that quarter to the date of payment at the rate of fifteen
per cent per annum.
(9) For the removal of doubt, it is hereby declared that
in ascertaining the chargeable profits of a company, no deduction
or allowance shall be made of, or on account of, the levy imposed
by this section.
(10) The business levy shall be under the care and
management of the Board of Inland Revenue and the provisions
of the Income Tax Act in the Table below shall apply in relation
to the business levy as they apply in relation to income tax
chargeable under the Income Tax Act but subject to any
necessary modification and adaptations.
(11) Notwithstanding anything in subsection (1), from
1st January 1999 the business levy shall not be levied earlier than
the date of expiry of three years from the date of registration of
a Corporation which is registered after the aforesaid date.
TABLE

INCOME TAX PROVISIONS APPLIED TO THE

BUSINESS LEVY
Section 2 (Interpretation).
Sections 3 and 4 (Administration).
Sections 59 to 65 (Trustees, agents, etc.).
Section 66 (Deceased persons).
Sections 76, 77 (Returns).
Sections 79 to 82 (Payment of tax by instalments).
Section 82A (Relief from payment of tax).

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Sections 83 and 84 (Assessments).

Section 85 (Assessment lists, etc.).
Section 86 (Notices of Assessment).
Section 87 (Appeals).
Sections 88 and 89 (Errors in assessments and additional assessments).
Section 90(1) and (3) (Repayment of Tax).
Section 92 (Refunds).
Section 93 (Relief from double taxation).
Section 94 (Certain income deemed to be income for the purposes of the
Ch. 75:01. Income Tax Act).
Section 103 (Interest for non-payment of tax).
Section 103A (Waiver of Liabilities).
Sections 104 to 108 (Collection).
Sections 109 to 112 (Recovery).
Sections 113 and 114 (Notices).
Section 115 (Imprisonment of defaulters).
Sections 116, 117, 118 to 124 (General Provisions).
Section 125 (Regulations).
Sections 130, 131, 132 (Miscellaneous powers of Board).
The Sixth Schedule.

3B. (Repealed by Act No. 9 of 1997).

General scheme 4. (1) Subject to any exceptions provided for by this Part,
of corporation
tax. a resident company shall be chargeable to corporation tax on all
[46 of 1969]. its profits wherever arising.
(2) Where a non-resident company is carrying on a trade
or business in Trinidad and Tobago, the profits thereof that are
chargeable to corporation tax shall be any income directly or
indirectly accruing in or derived from Trinidad and Tobago.
(3) Notwithstanding anything in this Act or any other
rule of law to the contrary, where profits arise to a company from
any activities on the continental shelf (this expression here
Ch. 1:52. having the same meaning as in the Continental Shelf Act) such
profits shall for all the purposes of this Act be deemed to have
accrued in or to have been derived from Trinidad and Tobago.

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(4) A company shall be chargeable to corporation tax on

profits accruing for its benefit under any trust or arising under
any partnership in any case in which it would be so chargeable if
the profits accrue to it directly; and a company shall be
chargeable to corporation tax on profits arising in the winding up
of the company, but shall not otherwise be chargeable to
corporation tax on profits accruing to it in a fiduciary or
representative capacity except as respects its own beneficial
interest, if any, in those profits.

BASIS OF ASSESSMENT AND EXEMPTIONS

5. (1) Corporation tax shall be charged for each year of Basis of

income upon the chargeable profits of the company arising in that
assessment.

year; so, however, that the provisions of this Part shall be read
and construed as imposing the charge to corporation tax on the
profits of the company for the year of income 1966 and
subsequent years in respect of the profits of the accounting period
ending within that year and so for subsequent years of income.
(2) Except as otherwise provided by this Part,
corporation tax shall be assessed upon the full amount of the
profits accruing or arising, whether or not received in Trinidad
and Tobago, in the year of income without any other deduction
than is authorised by this Act.

6. (1) There shall be exempt from corporation tax— Exemptions.

(a) distributions, other than preference dividends,

[35 of 1971
11 of 1984
received by a company from a resident company;
3 of 1988
6 of 1989
(aa) distributions received by a resident company
94/1989
65/1991
from the Export Import Bank over a period of 137/1992

ten years commencing from the date of the

6 of 1993
3 of 1994
initial injection of private sector funds into the
22 of 1994
24 of 1994
Export Import Bank; 5 of 1995
8 of 1996
(b) profits of an investment company; 35 of 1998
37 of 2000
(bb) gains and profits of an approved tourism project 50 of 2000

in accordance with the Order made under

203/2001
2 of 2006
section 16(1) of the Tourism Development Act;
2 of 2013].
Ch. 87:22.
(c) (Repealed by Act No. 2 of 2006);

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(d) profits arising from a trade or business carried

on by a co-operative society so registered under
any written law in force in Trinidad and Tobago;
(e) the profits of any sporting body of persons, that
are approved by the President by writing under
his hand, derived from public or private
subscriptions or donations, whether by deed or
covenant or otherwise, or derived from charges
for admission to witness sporting events, or
from the provision of refreshments to patrons
who witness sporting events;
(f) the profits of a trade union registered under the
Ch. 88:02. Trade Unions Act, being a trade union which is
precluded by its Rules from assuring to any
person a gross sum exceeding nine hundred and
sixty dollars or an annuity exceeding two
hundred and forty dollars per annum, in so far as
such profits are applicable and is applied solely
for the purpose of provident benefits, and for
the purposes of this paragraph the expression
“provident benefits” shall be taken to include
any payment expressly authorised by the Rules
of the trade union, which is made to a member
during sickness or incapacity from personal
injury or while out of work or to an aged
member by way of superannuation, or to a
member who has met with an accident, or has
lost his tools by fire or theft, and includes a
payment in discharge or aid of funeral expenses
on the death of a member, or the wife of a
member, or as provision for the children of a
deceased member;
*(g) profits of any ecclesiastical, charitable or
educational institution of a public character,
approved by the President by writing under his
hand, in so far as such profits are not derived from
a trade or business carried on by the institution;

*See LN 151/1987.

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(h) profits of the Post Office Savings Bank

and any other institution established for the
encouragement of thrift which the President
may declare to be exempt;
(i) profits arising from investment of any fund or
scheme approved by the President under section
27(1)(c) of the Income Tax Act; Ch. 75:01.
(j) profits of any statutory or registered building or
friendly society;
(k) interest receivable on any loan charged on the
public revenue declared by the President by
Order to be so exempt;
(ka) (Repealed by Act No. 2 of 2006);
(l) profits arising from investment of the
Employment Injury Benefit Fund, the Short
Term Benefits Fund and the Long Term Benefits
Fund established under the National Insurance Ch. 32:01.
Act;
(m) market development grants within the meaning
of the Trinidad and Tobago Export Development Ch. 85:86.
Corporation Act;
(n) profits of the Trinidad and Tobago Development
Finance Company Limited;
(na) profits of the Caribbean Microfinance Limited;
(o) profits of the National Insurance Property
Development Company Limited;
(p) profits of the Trinidad and Tobago Bureau of
Standards;
(q) interest payable on bonds known as
TTDFC Industrial Bonds that are issued by
the Trinidad and Tobago Development Finance
Company Limited;
(qa) with effect from, 1st October 1998, interest
payable on bonds issued by the Trinidad and
Tobago Mortgage Finance Company Limited
for the purpose of providing loans to first-time
home owners;
(r) profits of the Small Business Development
Company Limited;
(s) (Repealed by Act No. 2 of 2006);

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(sa) interest accruing on loans granted in furtherance

Ch. 39:08. of the University Students (Guarantee Fund)
Act, by financial institutions;
(t) (Repealed by Act No. 2 of 2006);
(u) profits accruing to a venture capital company;
(v) short-term capital gains accruing to venture
capital company;
(w) with effect from the 1st January 1994 profits
accruing to a trust in respect of its Unit Trust
business, being business of a financial nature as
Ch. 79:09. defined in the Financial Institutions Act, where
the trustee is a financial institution licensed
under the Financial Institutions Act or to such
other trust approved by the President where such
trust sells shares representing interests in the
assets of the trust to beneficiaries under the trust;
(x) the profits of BWIA International Airways
Limited for the period 1st January 1995, to
31st December 2001;
(y) the amount or value of the dividends or other
distributions paid to a resident company—
(i) by a trust operated by a financial
institution carrying on Unit Trust business
Ch. 79:09. under the Financial Institutions Act, or by
such other trust approved by the President
where the profits of such trust are exempt
from corporation tax;
(ii) under the First and Second Unit Schemes
of the Trinidad and Tobago Unit Trust
Ch. 83:03. Corporation established by the Unit Trust
Corporation of Trinidad and Tobago Act;
(z) profits of the Export Import Bank for a period of
ten years or until its capital reserves and retained
earnings equal its initial capital investment of
thirty-one and one-half million dollars
whichever is the lesser, commencing from the
date of the initial injection of private sector
funds into the Export Import Bank;

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(za) the profits of the CLICO Investment Fund

(CIF); and
(zb) the income or dividends distributed to resident
unitholders of the CLICO Investment Fund (CIF).
(2) For the purposes of subsection (1)(e)—
“sporting body of persons” means a body of persons established
for the purpose of promoting or advancing sporting events,
being a body of persons, to a share in the profits of which no
member or person other than another sporting body of
persons is entitled, and being a body of persons whose profits
are applied wholly to the promotion or advancement of
sporting events or to the provision of facilities or amenities
for competitors in, or for members of the public who attend,
sporting events except that a body of persons shall not cease
to be a sporting body of persons by reason only of the fact
that a portion of its profits is donated to any charitable or
educational institution of a public character; and
“sporting events” means athletics, badminton, basketball,
billiards, amateur boxing, amateur wrestling, cricket,
cycling, flying, model aeroplane flying, football, golf,
hockey, netball, polo, swimming, tennis, weightlifting,
yachting, and such other activities as may be prescribed.
(3) For the purposes of this section—
“local authority” means the Port-of-Spain Corporation, the San
Fernando Corporation and the Arima Corporation, continued
under section 3 of the Municipal Corporations Act; Ch. 25:04.

“investment company” means a resident company that in respect

of a year of income satisfies the following conditions:
(a) 100 per cent of the assets thereof are situated in
Trinidad and Tobago;
(b) at least 80 per cent of its property owned
throughout the year was shares, bonds,
marketable securities;
(c) not less than 90 per cent of its profits was
derived from shares, bonds or marketable
securities;
(d) not more than 50 per cent of its gross revenue
for the year was from interest;

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(e) at no time in the year did more than 10 per cent

of its property consist of shares, bonds,
marketable securities of any one company or
debtor, other than those of the Government;
(f) at no time in the year was the number of
shareholders of the company less than fifty,
none of whom at any time in the year held more
than 25 per cent of the shares or the capital stock
of the company;
(g) 90 per cent or more of its profits (other than
dividends or interest received in the form of
shares, bonds, or other securities that had not
been sold before the end of the year of income)
was distributed to its shareholders within six
months following the end of the accounting
period for that year of income.
(3A) For the purposes of subsection (1)(s) and (t)—
“approved agricultural holding” has the same meaning assigned
Ch. 75:01. to it as under section 14(6) of the Income Tax Act;
“financial institution” means a company which carries on all
or any aspects of banking business or business of a
financial nature;
“Minister” means the Minister to whom responsibility for
agriculture is assigned.
(4) The President may, by Order, subject to negative
resolution of Parliament, amend subsection (1) by extending,
reducing or otherwise altering the list of exemptions.
(5) Sections 10, 11 and 12 of the Income Tax Act have
effect in relation to interest referred to in paragraphs (s) and (t) as
if paragraphs (s) and (t) had not been enacted.
(6) Notwithstanding the repeal of subsection (1)(ka), (s)
and (t), where, on or before 31st December 2005, a person would
have been entitled to an exemption from tax under the repealed
subsection (1)(ka), (s) and (t) in respect of interest income on
loans made to fund projects under that subsection, the provisions
of that repealed subsection shall continue to have effect as if
subsection (1)(ka), (s) and (t) had not been repealed.

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6A. The exemption referred to in section 6(1)(n) shall not Market

apply to market development grants, unless they have been made
development
grants.
in respect of expenses incurred by an exporter, prior to the export [11 of 1984

of the first commercial shipment of goods produced in Trinidad

6 of 1989].

and Tobago, to the foreign market, and that market shall not be a
market in a country specified in the Sixth Schedule. Sixth Schedule.

COMPUTATION OF PROFITS

7. (1) Except as otherwise provided by this Part, the General rules

chargeable profits of a company shall be computed in accordance
for computation
of income.
with the income tax principles relating to the provisions of the [11 of 1988

Income Tax Act applied by section 19 and all questions as to the

6 of 1989
5 of 1995
amounts which are or are not to be taken into account as profits,
9 of 1997
35 of 1998
or in computing profits, or charged to tax as a person’s profits or 21/2005].

as to the time when any such amount is to be treated as arising,

Ch. 75:01.

being determined in accordance with income tax law as applied

by section 19 and practice.
(2) For the purpose of this section “income tax law”
means, in relation to any year of income, the law applying, for the
year of income, to the charge on individuals of income tax.
(3) Subject to any written law applied by this Part
which expressly authorises such an allowance, no allowance
shall, subject to subsection (4) and section 10O, be made in
ascertaining the chargeable profits—
(a) in respect of distributions; or
(b) in respect of any annuity or other annual
payment.
(4) Subsection (3)(a) shall not apply when the company
makes a distribution that is a preference dividend, paid on or after
1st January 1966, but so however that—
(a) the deduction that is allowed in ascertaining the
chargeable profits shall not exceed the amount
of the preference dividend;
(b) the deduction shall be allowed only in the year
of income in which the preference dividend has
actually been paid.
(5) (Deleted by Act No. 21 of 2005).

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(6) Without prejudice to the generality of subsection (1),

any provision of the Income Tax Act which confers an exemption
from income tax, or which provides for a person to be charged to
income tax on any amount (whether expressed to be income or
not, and whether an actual amount or not), shall have the like
effect for purposes of corporation tax so far as is consistent with
this Part.
(7) Where a change in the shareholding of a company
has taken place in a year of income, no loss incurred in any year
preceding the year of income shall be carried forward and set off,
as provided by section 16 of the Income Tax Act, against the
profits of the year of income unless—
(a) on the last day of the year of income the shares
of the company carrying not less than 51 per
cent of the voting power were beneficially held
by persons who beneficially held shares of the
company carrying not less than 51 per cent of
the voting power on the last day of the year or
years in which the loss was incurred; or
(b) the Board is satisfied that the change in the
shareholding was not effected with a view to
avoiding or reducing any liability to tax.
(8) Subject to section (9), where in a year of income

}
a company claims a deduction for wear and tear under
Ch. 75:01. section 11(1)(b) of the Income Tax Act, the deduction shall not be
allowed unless the company satisfies the Board that the taxes
Ch. 76:04. payable in that year of income under the Lands and Buildings
Ch. 25:04. Taxes Act and the Municipal Corporations Act have been paid for
the year of income to which the claim relates.
(9) (Deleted by Act No. 35 of 1998).

8.
to (Repealed by Act No. 2 of 2002).
9.
Deductions and 10. (1) In computing for purposes of corporation tax “a
company’s profits” for any year of income, there shall be made in
additions in
computations of
profits for
capital accordance with this section all such reductions and additions as
allowances and
related charges.
are required to give effect to the provisions of the Income Tax (In
Ch. 85:04.

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Aid of Industry) Act which relate to deductions and allowances

and charges in respect of capital expenditure, as those provisions
are applied by this Part.
(2) Allowances and charges which fall to be made for
any year of income in computing the profits of a trade shall be
given effect by treating the amount of any allowance as a trading
expense of the trade in that year, and by treating the amount on
which any such charge is to be made as a trading receipt of the
trade in that year.

10A. (Repealed by Act No. 6 of 1989).

10B. (1) In computing for the purposes of corporation tax Promotional

the profits of a company for a year of income, there shall be
expenses.
[11 of 1984
allowed promotional expenses wholly and exclusively incurred 6 of 1989

in order to create or promote the expansion of foreign markets for

3 of 1994].

the export of—

(a) architectural engineering, design, quantity
surveying or contracting services in connection
with the building industry, where such services
are performed by a person resident in Trinidad
and Tobago for a recipient who is outside
Trinidad and Tobago; or
(b) the export of goods and agricultural produce
manufactured or produced in Trinidad and
Tobago and shipped in commercial quantities,
equivalent to one hundred and fifty per cent of the amount
actually expended.
(2) A company granted an allowance under this section
is not entitled to an allowance under section 10 of the Income Tax Ch. 75:01.
Act in respect of expenses referred to in subsection (1).
(3) A company may only qualify for an allowance under
this section in respect of promotional expenses incurred in order to
create or promote the expansion of foreign markets for the export of
services referred to in subsection (1)(a) or goods and agricultural
produce manufactured or produced in Trinidad and Tobago, where
goods have been exported as a result of such expenditure.

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(4) A company may not be allowed an allowance under

this section in respect of emolument income within the meaning
of section 100 of the Income Tax Act, except in respect of
expenses incurred under paragraph (g) of subsection (5).
(5) For the purposes of this section:
“company” means a company incorporated and resident in
Trinidad and Tobago;
“promotional expenses” means expenses incurred in respect of
services referred to in subsection (1)(a) or goods and
agricultural produce manufactured or produced in Trinidad
and Tobago in—
(a) advertising in foreign markets;
(b) providing promotional literature for overseas
distribution;
(c) the participation in trade fairs, trade missions
and similar promotional activities;
(d) overseas travel for the purposes of conducting
promotional activities;
(e) providing free samples and technical
information on products;
(f) inviting buyers to Trinidad and Tobago;
(g) the recruitment of specialist sales personnel,
operating in foreign markets, for a maximum of
two years;
(h) conducting foreign market surveys.
(6) The provisions of subsection (1) shall not apply to
expenses incurred in petroleum operations, nor in respect of
expenses incurred in the export or the expanding of the export of
services referred to in subsection (1)(a) or goods and agricultural
produce manufactured in Trinidad and Tobago to countries
Sixth Schedule. specified in the Sixth Schedule.
(7) In subsection (6) “petroleum operations” means
operations related to the various phases of the petroleum industry
and includes exploring for, producing, refining, transporting and
marketing petroleum or petroleum products or both and
manufacturing and marketing of petroleum-based products and
petro-chemicals.

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10C. (Repealed by Act No. 2 of 2006).

10D. (1) Subject to this section, where in a year of income Deductions

commencing from the year 1994, a company under this section
of contributions
to catastrophe
makes a contribution to its catastrophe reserve fund, there shall reserve fund.

be allowed as a deduction in ascertaining the chargeable profits

[3 of 1994].

of the company for that year of income, such contribution up to

a maximum of twenty per cent of the net written premium income
of the company.
(2) Subsection (1) shall not apply—
(a) where the catastrophe reserve fund is equal to
or exceeds the net written premium income of
the company in a year of income; or
(b) to that portion of a contribution which will cause
the fund to exceed the net written premium
income of the company in a year of income.
(3) All amounts received in a year of income by a
company, as income derived from the investment of its catastrophe
reserve fund, shall not be included in computing the chargeable
profits of the company for that year of income, where the fund does
not exceed the net written premium income in that year.
(4) Where deductions in respect of amounts contributed
by a company to its catastrophe reserve fund have been allowed
under this section, and the company ceases to carry on its
property insurance business, the amounts comprising the fund in
the year in which the company ceases to carry on the property
insurance business, shall be taken into account in determining the
chargeable profits of the company for that year.
(5) The trustee of the fund established by a
company which ceases its property insurance business under
subsection (4) shall—
(a) deduct an amount equal to twenty-five per cent
of the amount comprising the fund at the date
when the company ceases the business; and
(b) remit the amount deducted in paragraph (a) to
the Board on account of the corporation tax
of the company for the year in which it ceases
the business.

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(6) The trustee of a catastrophe reserve fund shall

submit to the Board accounts in respect of that fund within three
months from the end of the accounting period of the company
which established the fund.
(7) For the purposes of this section—
“catastrophe reserve fund” or “fund” means a fund established by
Ch. 84:01. a company under section 49A of the Insurance Act;
“company” means a company registered under the Insurance Act
to carry on property insurance business insuring against
catastrophe risks;
“net written premium income” means the income of a company
from premiums derived from its property insurance
business, after deducting reinsurance premiums for
catastrophe risk reinsurance;
“property insurance business” means the business of effecting
and carrying out contracts of insurance against risks of loss
of or damage to property, not being risks of such kinds that
the business of effecting and carrying out contracts of
insurance against them constitutes marine, aviation and
transport insurance business or motor insurance business.
Expenses 10E. In computing for the purposes of corporation tax the
profits of a company for a year of income, there shall be allowed
incurred in
respect of
training.
[2 of 2013]. expenses reasonably incurred in the training and retraining of the
employees of the company up to one hundred and fifty per cent
of such expenditure.
Bonds, notes, 10F. (1) Where in a year of income commencing from the
year 1998, a company acquires from the holder of a bond, note,
debentures,
other debt
securities.
[39 of 2000 debenture or other similar debt security the right to receive the
4 of 2014 ]. income derived from any of those debt securities, there shall be
allowed as a deduction from the income from any source, in
ascertaining the chargeable profits of the company for that year of
income, all outgoings and expenses wholly and exclusively
incurred by that company in respect of the acquisition of the income
in relation to those debt securities, whether or not such income is
exempt from tax under this Act or any other written law.

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(1A) For the purposes of subsection (1), all outgoings

and expenses wholly and exclusively incurred by the company in
respect of the acquisition of the income in relation to those debt
securities whether or not such income is exempt from tax under
this Act or any other written law shall not include purchase
consideration paid.
(2) For the purposes of this section, the outgoing and
expenses incurred by a company in acquiring the right to receive
the income derived from a debt security referred to in
subsection (1) shall include interest expenses, investment fees for
the purchase of interest coupons relating to such debt security.
(3) Subsection (1) shall not apply to outgoings and
expenses incurred by a company in relation to strips of bonds or
other securities that were not originally issued either in Trinidad
and Tobago or in a CARICOM Member State.
(4) For the purposes of subsection (3), a “CARICOM
Member State” means a State Party to the Revised Treaty of
Chaguaramas including the Single Market and Economy signed
in 2001 in Nassau, Bahamas.
10G. (1) Subject to section 10L, where in a year of income Art and culture
commencing from the year 2001, a company incurs expenditure allowance.

in respect of an artistic work, there shall be allowed as a

[91 of 2000
2 of 2002
deduction, in ascertaining the chargeable profits of the company 5 of 2004

for that year of income, the actual expenditure incurred up to a

2 of 2006
13 of 2010
maximum of three million dollars. 2 of 2013].

(2) In respect of a visual work of art—

(a) the deduction may only be claimed in respect of
the initial acquisition of the work; and
(b) the deduction may be allowed where the work—
(i) is done by a national of Trinidad and
Tobago; and
(ii) is certified by an art gallery, which shall
submit a valuation of the work done.
(3) In the case of a performing art, the deduction shall
only apply where—
(a) the work is done by a national of Trinidad and
Tobago; and
(b) the national rendering such work is registered
with the Ministry with responsibility for culture

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or with the Tobago House of Assembly, in the

case of a national residing in Tobago.
(4) In this section “artistic work” means any work of art,
whether visual or performing.

Scholarship 10H. (1) In ascertaining the chargeable profits of a company

allowance.
for a year of income commencing from the year 2000, there shall
be allowed the actual expenses incurred in granting scholarships
[91 of 2000].

to nationals who are not employees, directors or associates of

directors of that company, for tertiary education at institutions
and in areas of study accredited and approved respectively by the
Ministry with responsibility for education.
(2) For the purpose of subsection (1), an “associate”
includes the spouse, parent, child, brother, sister or partner of a person.
Deduction of 10I. (1) Subject to section 10L, where in a year of income
commencing from the year 2003, a company promotes or
expenditure by
promoters or
sponsors of sponsors sporting activities or events or sportsmen, there shall
be allowed as a deduction, in ascertaining the chargeable profits
sporting
activities and
sportsmen.
of the company for that year of income the actual expenditure
incurred in respect of such promotion or sponsorship, up to a
[2 of 2002
5 of 2004
maximum of three million dollars.
207/2005
2 of 2006

(2) In the case of a sportsman sponsored by a company,

13 of 2010
2 of 2013].
the deduction shall only apply where the sportsman is a national
of Trinidad and Tobago.
(3) In this section, “sporting activities or events” means
athletics, badminton, basketball, amateur boxing, martial arts,
wrestling, cricket, cycling, model aeroplane flying, football,
rugby, golf, hockey, netball, baseball, polo, swimming, tennis,
weightlifting, yachting, automobile sports, surfing, archery,
scrabble, table tennis, body building, taekwondo,
billiards/snookers, bridge/other card games, tagby, chess, squash,
darts, draughts/checkers, volleyball, equestrian, windsurfing, game
fishing, gymnastics, judo, karate, karting, kickboxing, life saving,
softball, target archery, pigeon racing, recreational diving, special
olympics, powerboat racing, para olympics, rifle shooting, sailing,
model car racing, cricket (windball), triathlon, powerlifting and
such other activities or events as may be prescribed, under
subsection (4) by the Minister with responsibility for Sports.

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(4) The Minister to whom responsibility for sports is

assigned may, by Order, amend the list of sporting activities or
events detailed in subsection (3).
(5) For the purposes of this section “sportsman” means
an individual engaged in sporting activities or events.

10J. Subject to section 10L, where in a year of income Deduction of

commencing from the year 2003, a company sponsors audio, expenditure by

visual or video productions for the purposes of local education or

sponsors for
audio, visual or
local entertainment or reflecting local culture for radio or
video
productions.
television, there shall be allowed as a deduction, in ascertaining [2 of 2002
the chargeable profits of the company for that year of income, an
5 of 2004
2 of 2006
allowance of one hundred and fifty per cent of the actual 17 of 2007

expenditure incurred in respect of such productions up to a

13 of 2010
2 of 2013].
maximum of three million dollars.

10K. Where in a year of income commencing from 1st January Deduction of

2006, a production company incurs expenditure in respect of its expenditure by a

own audio, visual or video productions for educational purposes

production
company.
or promoting or reflecting local entertainment or local culture
[17 of 2007
13 of 2010
for use in radio, television or cinematograph works, there 2 of 2013].
shall be allowed as a deduction in ascertaining the chargeable
profits of the company for that year of income, an allowance
equal to one hundred and fifty per cent of the actual
expenditure incurred in making such productions up to a
maximum of three million dollars.

10L. (1) For the purpose of ascertaining the chargeable Assessing

profits of a company for a year of income, the aggregate
chargeable
profits.
allowance that may be claimed under sections 10G, l0I, 10J and [2 of 2002

10Q shall not exceed the sum of three million dollars.

5 of 2004
2 of 2006
17 of 2007
(2) In the case of a production company, in addition to 13 of 2010
the deduction allowed under section 10K, the company shall be
2 of 2013].

entitled to claim an aggregate allowance of up to a maximum of

two million dollars with respect to sums paid to finance sporting
activities and artistic works not related to its own business.

10M. For the removal of doubt a company which is granted an Double

allowance under sections 10G, 10H, 10I and 10J shall not also be deductions

entitled to a deduction under section 10 of the Income Tax Act as

prohibited.
[2 of 2002
applies to the Corporation Tax Act.
2 of 2006].
Ch. 75:01.
Ch. 75:02.

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Certification by 10N. For the purposes of section 10J—

(a) the Minister with responsibility for education
the Minister.
[5 of 2004
2 of 2006].
shall issue a certificate, in respect of a
production for educational purposes referred to
therein, to the effect that the production is for
educational purposes;
(b) the Minister with responsibility for culture shall
issue a certificate in respect of a production to
promote or reflect local entertainment or culture
referred to therein, in the manner prescribed to
the effect that the production is to promote or
reflect local entertainment or culture,
and a deduction shall not be allowed by the Board in the absence
of such certificate.
Covenanted 10O. (1) Notwithstanding section 7(3)(b), but subject to
subsections (2), (3), (4) and (5) where, in a year of income, a
donations.
[21 of 2005
2 of 2006
company makes a covenanted donation to charity, the company
shall be entitled to claim as a deduction, in ascertaining the
13 of 2010].

chargeable profits of the company for that year of income, an

allowance equal to the amount of the covenanted donation
payable during that year not exceeding fifteen per cent of the total
income of the company.
(2) (Repealed by Act No. 2 of 2006).
(3) A company shall not be entitled to claim as a
deduction under subsection (1), an allowance which is more than
the actual expenditure incurred during that year of income.
(4) A company shall not be entitled to the allowance
under this section where the deed or other agreement under
which the covenanted donation to charity is made has not been
Ch. 76:01. duly stamped in accordance with the Stamp Duty Act by the
31st December of the year in which the deed or agreement
was executed.
(5) For the removal of doubt, a company which is
granted an allowance under this section shall not also be entitled
to a deduction under sections 10G, 10H, 10I and 10J in respect of
the expenditure claimed under this section.
(5A) (Repealed by Act No. 2 of 2006).

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(6) For the purposes of this section “covenanted

donation to charity” means a payment under a deed of covenant or
other agreement, made by a company in favour of—
(a) a sporting body of persons as defined by section 6(2)
approved by the President in writing;
(b) an ecclesiastical, charitable, or educational
institution of a public character approved by the
President in writing; or
(c) the Children’s Life Fund established under the
Children’s Life Fund Act. Ch. 29:01.

10P. Where, in a year of income commencing 1st January Allowance for

2011, a company incurs expenditure in engaging another engagement of

company certified as an Energy Service Company by the

energy service
companies.
Minister with responsibility for energy, for the purpose of
[13 of 2010].

carrying out an audit for—

(a) the design of energy saving systems; and
(b) the installation of the energy saving systems,
in the company, that company shall be entitled to an allowance
equal to one hundred and fifty per cent of the expenditure
actually incurred.

10Q. Subject to section 10L, where in a year of income Deductions of

commencing from the year 2013, a company incurs expenditure expenditure for

in promoting the fashion industry, there shall be allowed as a

sponsors of
fashion industry.
deduction, in ascertaining the chargeable profits of the company
[2 of 2013].

for that year of income, an allowance equal to one hundred and

fifty per cent of the actual expenditure incurred in respect of such
promotions up to a maximum of three million dollars.

CLOSE COMPANIES

11. (1) A close company shall distribute as dividend Power to direct

profits which can be distributed without detriment to the
distribution of
certain profits.
company’s business.
(2) With a view to preventing the avoidance of the
payment of tax through the withholding from distribution of the
profits of a close company which could otherwise be distributed,
it is hereby enacted that where it appears to the Board that such a
company has not distributed to its members, as dividend, profits

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which could be distributed without detriment to the company’s

existing business, the Board, by notice in writing to the company,
may direct that such profits shall thereupon be distributed, so,
however, that in determining whether any company has or has not
distributed profits that could be distributed as aforesaid, the
Board shall have regard to the current needs and future
development requirements of the company’s business.
(3) Where, during any year of income, a close company,
on an application made in the prescribed manner and within the
prescribed time, satisfies the Board on the basis of concrete
evidence that such distribution would be prejudicial to the current
needs or to the future development requirements or both of the
company, the Board may relieve the company from compliance
with the directions under this section to such extent as it may
consider appropriate, and the company shall thereupon be so
relieved, so, however, that if the Board refuses so to relieve the
company or make any direction with which the company is
dissatisfied, the company aggrieved thereby may appeal to the
Appeal Board within twenty-eight days of receipt of notice of the
refusal or direction with which the company is dissatisfied,
notwithstanding no assessment has been made.

Deductions for 12. (1) In computing the profits of a close company for any
director’s
remuneration. year of income for the purpose of ascertaining the chargeable
profits of the company, the deduction that may be made for the
remuneration by way of fees of director other than a whole-time
service director shall not, subject to this section, exceed 10 per
cent of the chargeable profits, before making the deduction for
that remuneration or for initial allowances, other than the
allowance in respect of annual depreciation provided for by the
Ch. 85:04. Income Tax (In Aid of Industry) Act, but so that the deduction
does not exceed three thousand dollars for each such director.
(2) In computing the profits of a close company for any
year of income there may be allowed a deduction for the
remuneration by way of fees paid to any director, who is required to
devote substantially the whole of his time to the service of the company
in a managerial or technical capacity of an amount not exceeding—
(a) fifteen thousand dollars, in the case of the
highest paid director;

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(b) ten thousand dollars, in any other case,

so, however, that where any such director receives remuneration
by way of a salary as a full-time employee of the company, the
company may not claim as a deductible expense an amount in
excess of six thousand dollars in respect of the fees so paid.
(3) Notwithstanding anything in this section to the
contrary, where any sum paid to a director of a close company
exceeds an amount which in the opinion of the Board appears to
be fair and reasonable in view of the time provided by the
director to the affairs of the company, the Board may deem the
excess of the amount paid to such director over what is
considered to be fair and reasonable, to be a distribution by the
company to such a director.

13. The provisions of the Third Schedule shall have effect for Supplementary
the interpretation and operation of the foregoing sections of this Act
provisions
about close
relating to close companies, and those sections shall have effect companies.
subject to and in accordance with the provisions of that Schedule.
Third Schedule.

SPECIAL CLASSES OF COMPANIES

14. The provisions of the Fourth Schedule shall have effect Special
for the purpose of ascertaining the chargeable profits and the provisions as to
Insurance
tax payable thereon of Insurance Companies (including Life Companies and
Insurance Companies), Shipping Companies and Air
Shipping
Companies, etc.
Navigation Companies. Fourth
Schedule.

15. The provisions of the Fifth Schedule shall apply for Approved
the purpose of ascertaining the chargeable profits and the tax payable
mortgage
companies, etc.
thereon of approved mortgage and other companies, and [11 of 1988].

notwithstanding anything to the contrary in this or in any other

Fifth Schedule.

written law, the provisions of sections 42 to 46 of the Income Tax Act Ch. 75:01.
as renumbered shall apply to an approved mortgage or other company
referred to in the said Schedule for the purposes of this Part.

16. (1) Subject to this section, for the purpose of Deduction for
ascertaining the chargeable profits of an approved property
capital
expenditure by
development company, there shall be deducted an amount equal approved

to fifteen per cent of any capital expenditure incurred by that

property
development
company in the construction of a building that is to be used for company.

commercial or industrial purposes by the company or a purchaser

[17 of 2007
13 of 2010].

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or lessee thereof, where the construction of the building is proved

to the satisfaction of the Board to have commenced—
(a) before 31st December 2005 and is completed on
or before 31st December 2007; or
*(b) on or after 1st January 2008 and is completed on
or before 31st December 2014.
(2) Where the period of construction of a building to
which subsection (1) applies extends over more than one year of
income, the deduction shall be allowed only in the year of income
in which the building is completed.
(3) Where part of a building is to be used for
commercial or industrial purposes and the capital expenditure
incurred in the construction of that part of the building which is
not to be used for commercial or industrial purposes—
(a) does not exceed one-tenth of the total capital
expenditure incurred in the construction of the entire
building, the deduction allowed under subsection (1)
shall apply to the total capital expenditure incurred in
the construction of the building;
(b) exceeds one-tenth but does not exceed one-half of
the total capital expenditure incurred in the
construction of the entire building, the deduction
allowed under subsection (1) shall apply only to
the capital expenditure incurred in the construction
of that part of the building which is to be used for
commercial or industrial purposes; or
(c) exceeds one-half of the total capital expenditure
incurred in the construction of the entire
building, no deduction shall be allowed under
subsection (1).
(4) For the purposes of this section, the Board may
approve a company as an approved property development
company, if it is satisfied that the company—
(a) has a paid-up share capital of not less than one
million dollars; and
(b) is locally owned and controlled.
*This paragraph took effect from 1st January 2008. (See Act No. 13 of 2010).

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(5) The Board may, in approving a company for the

purposes of this section, impose such conditions as it may
consider necessary or expedient.
(6) Where the Board refuses to approve a company as an
approved property development company, it shall, within thirty
days of the refusal, inform the company by notice in writing of
its refusal to grant the approval.
(7) Where the Board is of the opinion that an approved
property development company—
(a) has ceased to comply with the requirements of
section 4;
(b) failed to construct the building within the time
specified in subsection (1); or
(c) has failed to comply with any condition
imposed by the Board,
the Board may, by notice in writing, withdraw its approval from
the date specified in the notice and the provisions of subsection (1)
shall cease to apply from that date.
(8) The deduction allowed under subsection (1) does not
preclude the grant of an initial allowance or annual allowance to
which the company may be entitled under the Income Tax (In Aid Ch. 85:04.
of Industry) Act.
(9) In this section—
“building” includes any structure of a permanent nature which
forms part of or is attached to a building;
“commercial or industrial purposes”, in relation to the use of a
building, does not include use for the purposes of a school,
college, university, club, hotel, hospital, private hospital or
of public entertainment or amusement;
“locally owned or controlled”, in relation to a company, means a
company in which nationals beneficially own shares
carrying between them, directly or indirectly—
(a) the right to exercise more than one-half of the
voting power of the company;
(b) the right to receive more than one-half of any
dividend that may be paid by that company; and

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(c) the right to receive more than one-half of any

capital distribution in the event of the winding up or
of a reduction in the share capital of that company;
“nationals” means citizens of Trinidad and Tobago and persons
who, under any law relating to immigration are regarded as
belonging thereto or having the status of residents, and
includes companies controlled by such persons or by
companies so controlled as specified in the definition of
“locally owned or controlled”, and partnerships the majority
share in which and the management of which are owned and
controlled by such persons.

Reliefs for 16A. (1) Subject to sections 16B to 16E—

(a) an approved small company;
certain
companies.
(b) an approved company carrying on business in a
[11 of 1988
3 of 1994
4 of 1995 regional development area; and
(c) an approved activity company,
91 of 2000
2 of 2006].

shall be exempt from the payment of corporation tax for a period

of five years commencing 1st January 2006.
(2) (Repealed by Act No. 2 of 2006).
(3) A company that is desirous of being granted a
benefit under this section may apply in writing to the Minister
where it satisfies the criteria set out in this section and
sections 16B and 16C.
(4) (Repealed by Act No. 2 of 2006).
(5) The Minister may, after consultation with the Small
Business Development Company Limited, issue a certificate of
approval to a small company referred to in subsection (1)(a)
where that company—
(a) is locally owned and controlled as defined in
section 16(9);
(b) has machinery, equipment and working capital
the value of which does not exceed one million
five hundred thousand dollars;
(c) if incorporated on or after 8th January 1988, is
not the result of the splitting or the
reconstruction of an existing company;

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(d) does not have as a shareholder any other

company holding shares either directly or
indirectly through its nominees;
(e) maintains accounts which are audited by an
accountant who is a member of the Institute of
Chartered Accountants of Trinidad and Tobago;
(f) has potential for creating permanent jobs;
(g) has at least five permanent employees; and
(h) makes optimum use of locally produced raw
materials.

*16B. (1) In the case of a company carrying on a business in a Regional

regional development area, the Minister may, after consultation development
company.
with the Industrial Development Corporation, issue a certificate [11 of 1988].
of approval to that company where the company—
(a) is incorporated in Trinidad and Tobago on or
after 8th January 1988 and is resident in
Trinidad and Tobago;
(b) is locally owned and controlled as defined in
section 16(9) and no other company holds
more than twenty-five per cent of the issued
share capital either directly or indirectly through
its nominees;
(c) is not formed by the splitting or the
reconstruction of a company already in existence;
(d) carries out its operations in an area designated
by the Minister to be a regional development
area in accordance with subsection (3) and
produces manufactured goods or industrial
services of which at least seventy-five per cent
are produced in the regional development area;
(e) holds at least seventy-five per cent of its fixed
assets in the regional development area;
(f) employs twenty or more workers of whom at
least seventy-five per cent work in the regional
area and receive more than sixty per cent of the
company’s total payment in respect of salaries

* See Note on page 2.

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and wages, such percentage to include the salary

or wage of any worker who markets a product
manufactured in a regional development area,
outside of that area; and
(g) operates a system of accounts approved by the
Industrial Development Corporation.
(2) The Minister may designate an area to be a regional
development area where the area is outside the boundaries of the
municipalities of Port-of-Spain and San Fernando, and
(a) is non-industrial; or
(b) has a high level of unemployment.
(3) The Minister may by Notice publish a list of regional
development areas.
Classifying of *16C. (1) The Minister may, after consultation with the
Industrial Development Corporation, classify as an approved
approved
activity.
[11 of 1988]. activity an activity capable of—
(a) earning hard currencies, or effecting significant
savings of foreign exchange;
(b) creating a significant number of permanent jobs
or offering prospects for future expansion;
(c) stimulating technological development or
developing new and modern industries; or
(d) making efficient use of local raw materials,
and may by Notice publish a list of approved activities which in
his opinion satisfy the criteria outlined in this subsection.
(2) The Minister may, after consultation with the
Industrial Development Corporation, issue a certificate of
approval to an approved activity company where that company—
(a) is incorporated in Trinidad and Tobago on or
after 8th January 1988 and is resident only in
Trinidad and Tobago;
(b) is locally owned and controlled as defined in
section 16(9) and no other company holds
more than twenty-five per cent of the issued
share capital either directly or indirectly
through its nominees;

* See Note on page 2.

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(c) is not formed by the splitting or the reconstruction

of a company already in existence;
(d) employs more than ten persons;
(e) is engaged in an activity classified as an
approved activity under subsection (1) and the
receipts from that activity exceed seventy-five
per cent of the gross receipts in a year of
income; and
(f) operates a system of accounts approved by the
Industrial Development Corporation.
(3) Where the requirements of this section are not
complied with, the Minister may nevertheless issue a certificate
of approval under subsection (2) subject to such conditions as he
considers necessary or expedient.

16D. Where a certificate of approval is issued to a company Registration of

under section 16A, 16B or 16C, the Industrial Development
companies.
[11 of 1988].
Corporation shall register the company and issue to it a certificate
of registration.

16E. (1) Where the Minister is of the opinion that any Cancellation of

company to which section 16A(1) refers no longer meets the

certificate.
[11 of 1988].
requirements for approval, the Minister shall by notice in writing
cancel that company’s certificate of approval and notify the
Industrial Development Corporation.

}
(2) Upon being notified by the Minister in accordance
with subsection (1) the Industrial Development Corporation shall
cancel that company’s certificate of registration and notify the
Board to that effect.

16F.
(Repealed by Act No. 2 of 2006).
16G.

16H. For the purposes of sections 16A to 16E inclusive Definitions.

“Minister” means the member of the Cabinet to whom
[11 of 1988].

responsibility for Industry is assigned.

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Tax credit on 16I. (1) Where, in a year of income, the profits of—
(a) an approved fund or scheme under section
interest paid by
mutual funds.
27(1)(c) of the Income Tax Act;
[8 of 1996
9 of 1997].
(b) a sporting body or institution approved by the
Ch. 75:01.

President under section 6(1)(e) or (g);

(c) an approved annuity business not subject to tax
under this Act,
include—
(i) a dividend paid by a financial
institution carrying on unit trust
business and licensed under the
Ch. 79:09. Financial Institutions Act;
(ii) the amount or value of a distribution
paid by the Unit Trust Corporation of
Trinidad and Tobago,
payable out of interest in respect of which tax has been deducted
under section 3B, such approved fund or scheme, approved
sporting body or institution or approved annuity business is
entitled in that year of income to a tax credit equivalent to the tax
deducted on the portion of the interest that relates to the dividend
or distribution received.
(2) The tax credit referred to in subsection (1) shall not
be granted unless a certificate from the trust or the Unit Trust
Corporation of Trinidad and Tobago is produced in support of the
claim for relief.
(3) The certificate shall state the amount of tax deducted
on that portion of the interest that relates to the dividend or
distribution received.
(4) Notwithstanding the repeal of section 3B by the
Provisional Collection of Taxes (No. 2) Order 1996, this section
shall continue to have effect for the purposes of subsection (5), as
though section 3B had not been repealed.
(5) Where an approved fund or scheme, approved
sporting body or institution or approved annuity business is, in
relation to the year of income ending 31st December 1996,

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entitled to a tax credit under subsection (1), which exceeds the

amount of tax for which it is assessed, such approved fund or
scheme, approved sporting body or institution or approved
annuity business, as the case may be, shall be entitled in
relation to that year of income to a refund equivalent to the
difference between the amount of the tax credit and the amount
of the tax assessed.

16J. Where in any year of income, an investor makes Tax credit from

an investment in the initial ordinary share capital of the

Export Import
Bank.
Export Import Bank, that investor shall be entitled to a tax
[37 of 2000].

credit of ten per cent of the amount of the investment for each
of the three years following the year of income in which the
investment was made.

17. (1) Except in so far as this Part otherwise provides, the Application and

Income Tax (In Aid of Industry) Act and any provisions of the
adaptation of
Income Tax Act
Income Tax Act relating to the making of allowances or charges
as to capital
allowance and
under or in accordance with the said Income Tax (In Aid of other matters.
[6 of 1989].
Industry) Act apply equally for purposes of corporation tax and Ch. 85:04.

for purposes of income tax.

Ch. 75:01.

(2) For purposes of corporation tax the right to an

allowance or liability to a charge for a year of income and the rate
or amount of any such allowance or charge, shall be determined
under the provisions referred in subsection (1) by applying the
law in force for the year of income.
(3) Where by virtue of this Part any provision of the
Income Tax Act applies both to income tax and to corporation
tax, it shall not be affected in its operation by the fact that they
are distinct taxes but, so far as consistent with this Part, shall
apply in relation to income tax and corporation tax as if they were
one tax, so that, in particular, a matter which in a case involving
two individuals is relevant for both of them in relation to income
tax shall in a like case involving an individual and a company be
relevant for him in relation to that tax and for it in relation to
corporation tax; and for that purpose in any such provision of the
Income Tax Act references to a deduction or allowance for the

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purpose of ascertaining chargeable income or to a specified

provision of that Income Tax Act shall, in the absence of or
subject to any express adaptation made by this Act, be construed
as being or including a reference to any corresponding deduction
or allowance for the purpose of ascertaining chargeable profits or
to any corresponding provision of this Part.

Double taxation 18. (1) Subject to any express amendments made by this
Part, sections 93 and 95 of the Income Tax Act together with any
relief.
[6 of 1989].
other written law relating or referring to double taxation relief
Ch. 75:01.

shall have effect in relation to corporation tax and profits

chargeable thereto as they are expressed to have effect in relation
to income tax and income chargeable thereto.
(2) Where dividends are paid by a company resident in
a country outside Trinidad and Tobago to a company resident in
Trinidad and Tobago which controls directly or indirectly not less
than one-quarter of the voting power of the company paying the
dividends, then for the purpose of allowing credit against
corporation tax in respect of the dividends in accordance with the
Fifth Schedule. Fifth Schedule to the Income Tax Act any Trinidad and Tobago
tax payable by the first-mentioned company in respect of its
profits (whether income tax or corporation tax) and any tax so
payable under the law of any country outside Trinidad and
Tobago, shall be taken into account as if it were tax payable under
the law of the first-mentioned country.
(3) For the purposes of this section a company shall be
deemed to control, directly or indirectly, not less than one-quarter
of the voting power in another company if a third company
having control also controls directly or indirectly not less than
one-half of the voting power in the first-mentioned company.

Interpretation. 18A. In sections 18B to 18L—

“accounting period” means the period in respect of which
[9 of 1997].

corporation tax is chargeable;

“claimant company” means a company which utilises the trading
loss of a surrendering company;

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“group relief” means relief that allows the current trading losses of
a surrendering company to be set off, by way of relief from
corporation tax, against the chargeable profits of claimant
company, whether in whole or in part, where throughout their
respective accounting periods, both companies satisfy the
provisions of the group test set out in section 18C;
“surrendering company” means a company which incurs a
trading loss and surrenders that loss to another company for
the purpose of group relief;
“trading loss” means a loss referred to in section 16 of the Income Ch. 75:01.
Tax Act but does not include capital allowances and
expenses payable to a group member and claimed as a
deduction if corresponding amounts have not been included
in the profit of the other group member for a year of income.

18B. Group relief for trading losses may be claimed by a Relief for
company in accordance with the provisions of sections 18C to 18L.
trading losses.
[9 of 1997].

18C. Group relief shall be available where— Group relief

(a) the surrendering company and the claimant

available.
[9 of 1997].

company are resident in Trinidad and Tobago

and are both members of the same group
throughout the respective accounting periods of
both companies; and
(b) the surrendering company and the claimant
company are members of the same group in
which one company is a 100 per cent subsidiary
of the other company or both companies are 100
per cent subsidiaries of a third company by way
of direct or indirect ownership.

18D. A company shall not be treated as the owner of a 100 per A company not
cent subsidiary for the purposes of sections 18B to 18M if share
a 100 per cent
subsidiary.
ownership includes— [9 of 1997].

(a) any share capital which it owns directly in a

body corporate if a profit on a sale of the shares
would be treated as a trading receipt of its trade;

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(b) any share capital which it owns indirectly and

which is owned directly by a body corporate for
which a profit on the sale of the shares would be
a trading receipt;
(c) any share capital which it owns directly or
indirectly in a body corporate not resident in
Trinidad and Tobago.

Company not to 18E. Notwithstanding paragraph (b) of section 18C, a

be treated as a
company shall not be treated as a 100 per cent subsidiary of
another company for the purposes of group relief, unless at the
100 per cent
subsidiary.
time of the claim—
[9 of 1997].

(a) the parent company is beneficially entitled to

not less than 100 per cent of any profits
available for distribution to ordinary
shareholders of the subsidiary company; and
(b) the parent company would be beneficially entitled
to not less than 100 per cent of any assets of the
subsidiary company available for distribution to
its ordinary shareholders on a winding up.
Set off of 18F. If in any year of income, the surrendering company
incurs a loss in carrying on its trade, the amount of the loss may
trading loss.
[9 of 1997].
be set off against the total chargeable profits of the claimant
company for the corresponding accounting periods of the
claimant company.
Claims for 18G. (1) A company claiming for group relief shall not be
entitled to such relief unless the company—
giving relief.
[9 of 1997].
(a) has claimed all of its available capital
allowances; and
(b) has utilised any of its own tax losses brought
forward.
(2) A claim for group relief shall be made or withdrawn
within two years of—
(a) the end of the claimant company’s accounting
period; and
(b) the end of the date of the surrendering company’s
accounting period to which the claim relates.

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(3) A claim for group relief shall specify—

(a) the name of the claimant company;
(b) the accounting period for which the relief is
claimed by the claimant company;
(c) the name of the surrendering company;
(d) the accounting period for which relief is claimed
by the surrendering company;
(e) the amount claimed in respect of the
surrendering company; and
(f) the total amount of profits of the claimant
company to be covered by group relief.

18H. The reduction, by means of group relief, of tax payable Limit to group
by a claimant company in a year of income shall not exceed relief.

25 per cent of the amount of tax which would have been payable
[9 of 1997].

had the relief not been granted.

18I. (1) For the purposes of group relief, an accounting period Corresponding
of the claimant company which falls wholly or partly within an
accounting
period.
accounting period of the surrendering company corresponds to the [9 of 1997].

accounting period of the surrendering company.

(2) Where an accounting period of the surrendering
company and a corresponding accounting period of the claimant
company do not coincide—
(a) the amount which may be set off against the
total chargeable profits of the claimant company
for the corresponding accounting period shall be
reduced by applying the fraction
A
B
where that fraction is less than unity; and
(b) the total profits of the claimant company for the
corresponding accounting period shall be
reduced by applying the fraction
A
C
where that fraction is less than unity.

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(3) For the purposes of subsection (2)—

(a) “A” is the length of the period common to the
two accounting periods;
(b) “B” is the length of the accounting period of the
surrendering company; and
(c) “C” is the length of the corresponding
accounting period of the claimant company.

Denial of group 18J. Group relief shall be denied—

(a) where the Board of Inland Revenue is of the
relief.
[9 of 1997].
opinion that a transaction which reduces or
would reduce the amount of tax payable by the
claimant company exists between the claimant
company and the surrendering company and is
artificial or fictitious; or
(b) to companies which are only temporary group
members.
Relief 18K. (1) Relief shall not be given more than once in respect of the
same amount, in any accounting period, to the surrendering company.
obtainable once
for the same
amount.
[9 of 1997]. (2) Two or more claimant companies shall not—
(a) in respect of any one loss or other amount for
which group relief may be given;
(b) whatever their accounting periods corresponding
to that of the surrendering company,
obtain, in all, more relief than could be obtained by a single
claimant company whose corresponding accounting period
coincides with the accounting period of the surrendering company.
Aggregate of 18L. (1) Subject to subsection (2), two or more claimant
companies may make claims relating to the same surrendering
claim.
[9 of 1997].
company and to the same accounting period of that surrendering
company.
(2) Notwithstanding subsection (1), where the claimant
companies referred to in subsection (1) make claims, the
aggregate of the claims shall not exceed the amount of the loss
surrendered by the surrendering company.

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18M. Group relief shall not apply to companies that are subject Non-application
to taxation under the Petroleum Taxes Act.
of relief.
[9 of 1997].
Ch. 75:04.

19. (1) The corporation tax shall be under the care and Application of
management of the Board of Inland Revenue and, subject to
certain
provisions of
sections 7 and 10, the provisions of the Income Tax Act in the the Act.
[32 of 1969
Table below shall apply in relation to corporation tax as they 30 of 1974

apply in relation to income tax chargeable under the Income Tax

14 of 1987
11 of 1988
Act but subject to any necessary modifications and adaptations.
6 of 1989
6 of 1991

(2) Notwithstanding the repeal of sections 70(1)(b),

14 of 1994
22 of 1994

70(1)(c), 70(2), 71(2), 74(1) and 74(4) of the Income Tax Act, the
5 of 1995
8 of 1996
said sections shall form part of the Table below. 35 of 1998
91 of 2000
21 of 2005
2 of 2006
TABLE 30 of 2007].
Ch. 75:01.
INCOME TAX PROVISIONS APPLIED TO
COPORATION TAX
Section 2 (Interpretation).
Sections 3 and 4 (Administration).
Section 7 (Chargeable income of certain persons).
Sections 10, 11, 11A, 11B and 12 (Deductions and Allowances).
Section 14 (Exemption for approved agricultural holdings).
Section 16 (Allowance for trade losses).
Section 27(1)(c) [Approved fund or scheme with respect to deductions
allowed at section 11(f), (g) and (h)].
Sections 28 to 33 (Approved Pension Fund Plans).
Sections 42 to 46 (Income tax exemptions in respect of newly constructed
dwelling houses).
Section 48K (Tax credit for shares in Venture Capital Company).
Section 57A (Tax credit—Consolidated special levy).
Sections 59 to 65 (Trustees, agents, etc.).
Sections 67, 68 to 75 (Settlements).
Section 76 other than subsections (6) and (7), and section 77.
Sections 79 to 82 (Payment of tax by instalments).
Section 82A (Relief from payment of tax).
Sections 83 and 84 (Assessments).

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Section 85 (Assessments lists, etc.).

Section 86 (Notices of Assessments).
Section 87 (Appeals).
Sections 88 and 89 (Errors in Assessments and additional Assessments).
Section 90(1) and (3) (Repayment of tax).
Section 94 (Certain income deemed to be income for the purposes of the
Income Tax Act).
Section 97 (General Powers of the Board).
Section 103 (Interest for non-payment of tax).
Section 103A (Waiver of interest, additional tax, penalty, etc.).
Sections 104, 105, 106, 107, 108 (Collection).
Sections 109, 110, 111, 112 (Recovery).
Sections 113 and 114 (Notices).
Section 115 (Imprisonment of defaulters).
Sections 116, 117, 118 to 124 (General provisions).
Section 125 (Regulations).
Sections 130, 131, 132 (Miscellaneous powers of the Board).
Sections 133 to 141 (Expenses allowance to Directors and others).
The First, Fifth and Sixth Schedules.

Penalty for late 19A. (1) A company which fails, neglects or refuses to
furnish a return of income for the year of income 1994 and
filing.
[5 of 1995
2 of 2002].
subsequent years after six months from the time required to file
the return, shall, thereafter, in addition to any other penalty
provided in this Act, be liable to a penalty of one thousand dollars
for every six months or part thereof during which such failure,
neglect or refusal continues.
(2) A company which has not furnished a return of
income for any year of income preceding the year of income
1994 and fails, neglects or refuses to furnish such return on or
before 31st October 1995 shall, in addition to any other penalty
provided in the Act, be liable to a penalty of one thousand dollars
in respect of any such return for every six months or part thereof
during which such failure, neglect or refusal continues.
(3) The Board may waive or reduce the penalty for late
filing in circumstances where it is just and equitable to do so.

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MISCELLANEOUS AND GENERAL

20. (1) An auctioneer, and any person carrying on a trade of Special return.
dealing in any description of tangible movable property, or of
acting as an agent or intermediary in dealings in any description
of tangible movable property, may be required by the Board to
deliver a return giving particulars of any transaction effected by
or through him in which any asset which is tangible movable
property is disposed of.
(2) No person shall be required under this section to
include in a return particulars of any transaction effected before
1st January l966 or more than six years before the service of the
notice requiring him to deliver the return to the Board.

21. Any person in whose name any shares of a company are Nominee share
registered shall, if required by notice in writing by the Board,
holdings.

state in writing whether or not he is the beneficial owner of those

shares, and, if not the beneficial owner of those shares or any of
them, shall furnish the name and address of the person or persons
on whose behalf the shares are registered in his name, and if any
person on being so required neglects or fails to comply with the
notice within the time limited by the notice, he is liable to a
penalty of twice the amount of tax that would be chargeable at the
highest rate in respect of the amount of the income apportioned
to such shares. In this section references to “shares” includes
references to “securities” and “loan capital”.

22. A return of a partnership under sections 76 and 78 of the Partnerships.

Income Tax Act as applied by this Part shall include—
[6 of 1989].
Ch. 75:01.

(a) with respect to any disposal of partnership

property during a period to which any part of the
return relates the like particulars as if the
partnership were liable to tax on any chargeable
gain accruing on the disposal; and
(b) with respect to any acquisition of partnership
property the particulars required under section 76.

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Information as 23. A person holding shares or securities in a non-resident

company or who is interested in settled property under a
to non-resident
companies and
trusts.
[6 of 1989]. settlement the trustees of which are not resident in Trinidad and
Tobago may be required by notice issued by the Board to deliver
to it such particulars as it may consider are required to determine
whether the company or trust falls within section 60 of the
Ch. 75:01. Income Tax Act as applied by this Part and whether any
chargeable gains have accrued to that company, or to the trustees
of that settlement, in respect of which the person to whom the
notice is given is liable to tax by virtue of the said section 60 of
the Income Tax Act.

Valuation. 24. (1) If for the purposes of this Part the Board authorises
any public officer to inspect any property for the purpose of
ascertaining its market value the person having the custody or
possession of that property shall permit the officer so authorised
to inspect it at all reasonable times.
(2) If any person wilfully delays or obstructs the officer
acting in pursuance of this section he is liable on summary
conviction to a fine of fifteen hundred dollars.

Priority of tax 25. In a bankruptcy, corporation tax shall have the same
priority as income tax.
in bankruptcy.

PART II

MISCELLANEOUS
General as to 26. (1) Notwithstanding any written law to the contrary,
where under any written law conferring exemption from income
exemption.

tax or corporation tax with respect to distribution or payments of

interest made to members of a company that is exempt from
income tax or corporation tax, the period during which the
company may distribute profits that are exempt from tax is
limited, the company may nevertheless distribute the exempt
profits at any time thereafter and every such sum when so
distributed is exempt from the payment of income tax or
corporation tax in the hands of such members, if a special

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account showing the distribution and payments of interest made

by the exempt company is maintained by the company to the
satisfaction of the Board of Inland Revenue.
(2) Where by any written law conferring exemptions
from income tax or corporation tax with respect to the
distributions or payments of interest made to members of a
company that is itself exempt from tax, a member of such a
company is another company, then that other company is
entitled at any time to distribute a sum equal to the exempt
distributions or payments of interest received by it to its
members, and every such sum when so distributed is exempt
from the payment of income tax or corporation tax in the hands
of such members, if a special account showing the distribution
and payments of interest received from the exempt company is
maintained by the other company to the satisfaction of the
Board of Inland Revenue.

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Section 3.
[2/1968*
FIRST SCHEDULE
5 of 1969
11 of 1988
6 of 1989 RATE OF CORPORATION TAX
9 of 1990
4 of 1992 1. Subject to paragraphs 2 and 3, the rate of the corporation tax payable
5 of 1995
8 of 1996
on the profits of a company, is—
2 of 2002 (a) twenty-five cents for every dollar up to $1,000,000 of the
2 of 2006 chargeable profit; and
17 of 2007
10 of 2016]. (b) thirty cents for every dollar that exceeds $1,000,000 of the
chargeable profit.

2. In the case of the long-term insurance business of an assurance

company the rate of tax shall be fifteen per cent, except that where profits of
that business are transferred to the shareholder’s account, a corresponding
amount of the profits of the accounting period ending in the year of income in
which the transfer was made shall be treated as chargeable at the rate of
twenty-five per cent, and where there is an insufficiency of such profits of that
accounting period the amount by which the profits so transferred exceeds the
profits of such period shall be deemed to be profits of that period after making
allowance for any tax previously paid.

3. (1) Companies engaged in the—

(a) liquefaction of natural gas;
(b) manufacture of petro-chemicals;
(c) physical separation of liquids from a natural gas stream and
natural gas processing from a natural gas stream;
(d) transmission and distribution of natural gas;
(e) wholesale marketing and distribution of petroleum
products; and
(f) any other activity prescribed by Order of the Minister with
responsibility for finance,
shall be subject to corporation tax at the rate of thirty-five per cent per annum.
(2) For the avoidance of doubt, companies engaged in the wholesale
marketing and distribution of petroleum products shall not include companies—
(a) operating a liquid petroleum gas filling plant or conducting
a refilling operation;
(b) involved in the sale and distribution of leaded and unleaded
gasoline, diesel and kerosene lubricants and other car care
products; or
(c) operating service stations.

SECOND SCHEDULE
(Repealed by Act No. 2 of 2002).

*Confirmed by GN 14/1968.

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THIRD SCHEDULE Section 13.

[6 of 1989].

SUPPLEMENTARY PROVISIONS ABOUT

CLOSE COMPANIES
1. (1) For purposes of this Part of this Act, a “close company” is one
which is under the control of five or fewer participators or of participators who
are directors, except that the expression does not apply—
(a) to a non-resident company;
(b) to a statutory or registered building or friendly society;
(c) to a company controlled by or on behalf of the State; or
(d) to a company falling within subparagraph (2).
(2) A company is not to be treated as a close company in any
case where—
(a) by reason of beneficial ownership of shares in the company
the control of it is in the hands of a company which is not a
close company or of two or more companies none of which
is a close company; and
(b) it could only be treated as a close company as being under
the control of five or fewer participators, and it cannot be so
treated except by taking as one of the participators a
company which is not a close company,
but so that references in this subparagraph to a close company, shall be
construed as applying to any company which, if a resident company, would be
a close company.

2. For purposes of the provisions of this Act relating to close companies,

a company is to be treated as another’s “associated company” at a given time
if at that time, or at any time within one year previously, one of the two has
control of the other or both are under the control of the same person or persons.

CONTROL

3. (1) For purposes of this Part, a person shall be taken to have control
of a company—
(a) if he exercises, or is able to exercise, or is entitled to
acquire, control, whether direct or indirect, over the
company’s affairs, and in particular, but without prejudice to
the generality of the preceding words, if he possesses or is
entitled to acquire, the greater part of the share capital or
voting power in the company; or

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(b) if he possesses or is entitled to acquire, either—

(i) the greater part of the issued share capital of the
company;
(ii) such part of that capital as would, if the whole of the
profits of the company were in fact distributed to the
members, entitle him to receive the greater part of the
amount so distributed; or
(iii) such redeemable share capital as would entitle him to
receive on its redemption the greater part of the assets
which, in the event of a winding up, would be
available for distribution among members; or
(c) if in the event of a winding up he would be entitled to the
greater part of the assets available for distribution among
members.
Where two or more persons together satisfy any of the conditions in
paragraphs (a) to (c), they shall be taken to have control of the company.
(2) In subparagraph (1), “member” includes any person having a
share or interest in the capital or profits of the company, and for purposes of
that subparagraph a person shall be treated as entitled to acquire anything
which he is entitled to acquire at a future date or will at a future date be entitled
to acquire; but for the purposes of subparagraphs (1)(b)(iii) and (c) any such
loan creditor as is mentioned in paragraph 4(1)(b) may be treated as a member
(and the references to share capital as including loan capital).
(3) For purposes of subparagraph (1) there shall be attributed to any
person any rights or powers of a nominee for him, that is to say, rights or
powers which another person possesses on his behalf or may be required to
exercise on his direction or behalf.
(4) For purposes of subparagraph (1) there may also be attributed to
any person all the rights and powers of any company of which he has, or he
and associates of his have, control or any two or more such companies, or of
any associate of his or of any two or more associates of his, including those
attributed to a company or associate under subparagraph (3) but not those
attributed to an associate under this subparagraph; and such attributions shall
be made under this subparagraph as will result in the company being treated
as under the control of five or fewer participators, if it can be so treated.

“PARTICIPATOR” AND “ASSOCIATE”

4. (1) For purposes of this Part, a “participator” is, in relation to any
company, a person having a share or interest in the capital or profits of

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the company and, without prejudice to the generality of the preceding

words, includes—
(a) any person who possesses or is entitled to acquire share
capital or voting rights in the company;
(b) any person who is a loan creditor of the company otherwise
than in respect of any loan capital or debt issued or incurred
by the company for money lent by him to the company in the
ordinary course of a business of banking carried on by him;
(c) any person who possesses or is entitled to acquire a right to
receive or to participate in the distributions of the company
or any amounts payable by the company (in cash or in kind)
to loan creditors by way of premium on redemption;
(d) any person who is entitled to secure that the profits or assets
(whether present or future) of the company will be applied
directly or indirectly for his benefit.
(2) In subparagraph (1), references to “being entitled to do
anything” apply where a person is presently entitled to do it at a future date or
will at a future date be entitled to do it; and “loan creditor” means a creditor
in respect of any redeemable loan capital issued by the company or in respect
of any debt incurred by the company, being a debt—
(a) for money borrowed or capital assets acquired by the company;
(b) for any right to receive profits created in favour of the
company; or
(c) for consideration the value of which to the company was (at
the time when the debt was incurred) substantially less than
the amount of the debt (including any premium thereon).

5. For the purposes of this Act relating to close companies, “associate”

means, in relation to a participator—
(a) a person in any of the following relationships to the
participator, that is to say, husband or wife, parent or remoter
forebear, child or remoter issue, brother or sister, and partner;
(b) the trustee or trustees of any settlement in relation to which
the participator is, or any such relative of his (living or dead)
as is mentioned in subparagraph (a) is or was, a settlor
“settlement” and “settlor” here having the same meaning as
in section 72 of the Income Tax Act and “relative” including Ch. 75:01.
a husband or wife;
(c) where the participator is interested in any shares or
obligations of the company which are subject to any trust or
are part of the estate of a deceased person, any other person
interested therein,
and has a corresponding meaning in relation to a person other than a participator.

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“DIRECTOR” AND “WHOLE-TIME SERVICE DIRECTOR”

6. (1) For purposes of this Act relating to close companies, “director”

and “whole-time service director” have the meanings assigned to them by this
paragraph.
(2) “Director” includes any person occupying the position of director
by whatever name called, any person in accordance with whose directions or
instructions the directors are accustomed to act and any person who—
(a) is a manager of the company or otherwise concerned in the
management of the company’s trade or business; and
(b) is remunerated out of the funds of that trade or business; and
(c) is either on his own or with one or more associates, the
beneficial owner of, or able, directly through the medium of
other companies or by any other indirect means, to control
twenty per cent, or over of the ordinary share capital of the
company (“ordinary share capital” here meaning all the issued
share capital, by whatever name called, other than capital the
holders whereof have a right to a dividend at a fixed rate but
have no other right to share in the profits of the company).
(3) “Whole-time Service Director” means a director who is required
to devote substantially the whole of his time to the service of the company in
a managerial or technical capacity and is not, either on his own or with one or
more associates, the beneficial owner of, or able, directly or through the
medium of other companies or by any other indirect means, to control, more
than five per cent of the ordinary share capital of the company [“ordinary share
capital” here having the same meaning as in subparagraph (2)(c)].

Section 14. FOURTH SCHEDULE

[5 of 1969
6 of 1989].
INSURANCE, SHIPPING AND
AIR NAVIGATION COMPANIES
1. Notwithstanding anything to the contrary contained in Part I of this
Act, it is hereby provided that—
(1) In the case of a non-resident assurance company (other than the
long-term insurance business of such company), the profits on which
corporation tax is payable shall be the full amount of the profits of the
company’s business directly or indirectly accruing in or derived from Trinidad
and Tobago as ascertained from the revenue account of the company’s
business in accordance with the provisions of Part I of this Act;

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(2) In the case of a resident assurance company (other than the long-
term insurance business of such company), the profits on which corporation
tax is payable shall be the full amount of the profits of the company’s business
whenever carried on as ascertained from the revenue account of the company’s
business in accordance with the provisions of Part I of this Act;
(3) (a) in the case of a shipowner, the profits of his business as
shipowner shall, if he produces or causes to be produced to
the Board the certificate mentioned in subparagraph (b) of
this paragraph, be taken to be a sum bearing the same ratio to
the sums payable in respect of fares or freight for passengers,
goods, or mails shipped in Trinidad and Tobago as the
aggregate profits for the year of income shown by that
certificate bears to the gross earnings for that period;
(b) the certificate shall be a certificate by the taxing authority of
the place in which the principal place of business of the ship
owner is situated and shall state—
(i) that the shipowner has furnished to the satisfaction of
that authority account of the whole of his business; and
(ii) the ratio of the profits for the year of income as
computed according to the tax law of that place (after
deducting interest on any money borrowed and
employed in acquiring the profits) to the aggregate of
the amount of receipts of the shipowner’s fleet or
vessel for that period;
(c) if the profits of a shipowner have for the purpose of
assessment in Trinidad and Tobago under Part I of this Act,
been computed on any basis other than the ratio of the profits
shown by a certificate as aforesaid, and an assessment has
been made accordingly, the shipowner shall, upon production
of the certificate at any time within two years from the end of
the year of income, be entitled to such adjustment as may be
necessary to give effect to the said certificate and to have any
tax paid in excess refunded;
(d) in this paragraph, the expression “shipowner” means an
owner or charterer of ships whose principal place of business
is situated outside Trinidad and Tobago.

2. (1) Where an assurance company carries on long-term insurance

business in conjunction with assurance business of any other class, the long-
term insurance business of the company shall for purposes of Part I of this Act
be treated as a separate business from any other class of business carried on by
the company.

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(2) Where an assurance company carries on ordinary life insurance

business, general annuity business, industrial life insurance business, approved
annuity business, bond investment business, non-cancellable sickness and accident
insurance business or any of them—
(a) the ordinary life insurance business or general annuity
business or both, as the case may be, shall be treated as a
separate class of business; and
(b) the industrial life insurance business, approved annuity
business, bond investment business, non-cancellable sickness
and accident business, as the case may be, shall each be treated
as a separate class of business,
and paragraph 3 relating to expenses shall apply separately to each such class
of business.
(3) No loss incurred in connection with any business deemed to be a
separate business under subparagraphs (1) and (2) shall be set off against the
profits from any other business in any year of income but may be carried
Ch. 75:01. forward to be set off, to the extent provided by section 16 of the Income Tax Act
as applied for the purposes of this Act against the profits of that business in
succeeding years.

3. (1) The profits of the long-term insurance business of an assurance

company on which corporation tax is payable shall be profits derived from the
investment of its Statutory Fund, including, in the case of a resident company,
profits from the investment of any foreign long-term insurance fund. Such
profits shall be computed in accordance with the provisions of Part I of this Act,
but subject, as regards expenses, to this paragraph.
(2) Subject to paragraph 2(2), for the purpose of computing the
profits of the long-term insurance business of an assurance company, there
shall be allowed such proportion of the outgoings and expenses as the Board
may, in any case, determine being such outgoings and expenses specified in
the Table below as are wholly and exclusively incurred during the year of
income by such assurance company in the production of the profits.
(3) Deductions shall not be allowed for expenses directly related to
annual premium income including the medical examination of policy holders,
stamp duties payable on policies and other such expenses directly related to
the inclusion of a policy on the books of the company; so, however, that for the

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year of income 1969 and subsequent years there shall be allowed the following
percentages of annual premiums as agents’ commissions:
Percentage of annual premium
Year of Income First year Second or subsequent years
1969 … … 15% 2%
1970 … … 10% 2%
1971 … … 5% 2%
1972 … … Nil 2%
1973 and subsequent years Nil Nil
(4) The profits of approved annuity business shall not be chargeable
to tax except to the extent that such profits are distributed to the shareholders.

4. Where, in the case of a non-resident company, any part of the profits of

its long-term insurance business is transferred to the shareholders account, the
amount of the profits that is to be treated under the First Schedule of this Act as First Schedule.
chargeable at the higher rate of tax shall be taken to be the amount produced by
multiplying the total amount transferred by the ratio of the Trinidad and Tobago
actuarial reserves over the company’s world actuarial reserves.

5. (1) In this Schedule—

“foreign long-term insurance fund” means any fund representing the amount
of the liability of an assurance company in respect of its long-term
insurance business with policy holders and annuitants residing out of
Trinidad and Tobago whose proposals were made to, or whose annuity
contracts were granted by, the company at or through a branch or agency
outside Trinidad and Tobago and, where such a fund is not kept separately
from the Statutory Fund, means such part of the Statutory Fund as
represents the liability of the company under such policies and annuity
contracts, such liability being estimated in the same manner as it is
estimated for the purpose of the periodical returns of the company to the
supervisor under the Insurance Act; Ch. 84:01.
“long-term insurance business” means ordinary life assurance business,
general annuity business, industrial life insurance business, approved
annuity business, non-cancellable sickness and accident insurance and
bond investment business;
“revenue account” means the revenue account required to be kept under
section 56 of the Insurance Act;
“Statutory Fund” has the same meaning as in section 3 of the Insurance Act,
except that in the case of a resident company the expression shall be
deemed to include the authorised and paid up share capital of the company.
(2) Subject to this paragraph, the First Schedule of the Insurance Act
shall apply for the purpose of the definition of so much of the business referred
to in this Schedule as are defined therein.

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6. (1) Profits arising from the business of shipping carried on by a non-

resident company shall be exempt from corporation tax provided that the
President is satisfied that an equivalent exemption from tax is granted by the
country of the non-resident company to the resident company.
(2) In this paragraph, the expression “business of shipping” means
the business carried on by an owner of ships or aircraft and for the purposes
of this definition the expression “owner” includes any charterer.

TABLE

GENERAL AND INVESTMENT EXPENSES

RENT

1. Head office rents.

2. Branch office rents.

SALARIES, WAGES AND ALLOWANCES

3. Head office employees salaries and wages.

4. Branch office employees salaries and wages.
5. Manager and agents salaries.
6. Directors’ fees.

EMPLOYEES AND AGENTS WELFARE

7. Contributions to pension and insurance plans for employees.

8. Contributions to pension and insurance plans for Agents.
9. Other employees welfare.

PROFESSIONAL AND SERVICE FEES AND EXPENSES

10. Legal fees and expenses.

11. Auditors fees.

MISCELLANEOUS EXPENSES

12. Advertising.
13. Books and periodicals.
14. Bureau and Association dues.
15. Collection of Bank Charges.

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16. Commission on mortgages.

17. Insurance, except on real estate.
18. Postage, telegraph, telephone, express.
19. Office furniture.
20. Rental of equipment and general office maintenance.
21. Travelling expenses, head office.
22. Travelling expenses, branch office.

REAL ESTATE EXPENSES, EXCLUDING TAXES

23. Real estate expenses.

FIFTH SCHEDULE [11 of 1988

18 of 1989].

TAX EXEMPTIONS FOR APPROVED MORTGAGE

COMPANIES AND OTHER COMPANIES
1. (1) Notwithstanding the provisions of Part I of this Act but subject
to subparagraph (2) and paragraph 1A(1) there shall be exempt from
corporation tax any income or profits of a company derived from the business
to which section 42(2)(b) to (e) of the Income Tax Act relates. Ch. 75:01.
(2) For the purposes of subparagraph (1), the Minister may by
instrument in writing declare a company to be an approved mortgage company
where that company has entered into an agreement with the Government
whereby the company agrees, in accordance with this Schedule and the Housing Ch. 33:01.
Act and under the terms of the agreement—
(a) to finance by way of mortgage the purchase of newly
constructed houses;
(b) to finance by way of mortgage the repayment of loans
granted for the construction of houses; and
(c) to finance the construction of houses by providing loans
under loan agreements and by taking mortgages of the
houses so constructed upon completion of construction.
(2A) Notwithstanding the termination of the agreement between a
company and the Government referred to in subparagraph (2), the exemptions
granted under this Schedule shall apply in respect of any mortgages or loans
which the Minister certifies were granted prior to the date of termination.

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(3) Notwithstanding the provisions of paragraphs 1(1), 2, and 4(1)

that relate to the taxes with respect to which the profits of an approved
mortgage company or the shareholders or the debenture holders of an approved
mortgage company are exempt, the terms of the agreement mentioned in
subparagraph (2) may limit the taxes from which an approved mortgage
company or the shareholders or the debenture holders in the approved mortgage
company are exempt.

1A. (1) Where the Home Mortgage Bank has entered into an
agreement with the Government to buy mortgage loans from approved
mortgage companies, the Home Mortgage Bank is, subject to the terms of the
Ch. 75:01. agreement, deemed for the purposes of section 42(2)(d) of the Income Tax Act
and paragraphs 1(1), 3(3) and 5 to be an approved mortgage company in relation
to any mortgage loan that it buys from an approved mortgage company.
(2) Notwithstanding subparagraph (1) or paragraph 4A(1) that
relate to the taxes with respect to which the profits of the Home Mortgage Bank
or the debenture holders of the Home Mortgage Bank are exempt, the terms of
the agreement mentioned in subparagraph (1) may limit the taxes from which
the Home Mortgage Bank or the debenture holders of the Home Mortgage
Bank are exempt.
(3) Notwithstanding the termination of the agreement between the
Home Mortgage Bank and the Government referred to in subparagraph (1),
the exemptions granted to the Home Mortgage Bank by reason of that
subparagraph shall apply in respect of any mortgage loan granted by an
approved mortgage company which the Minister certifies was sold to the
Home Mortgage Bank prior to the date of termination.

2. An approved mortgage company that is exempt from corporation tax

under paragraph 1(1) may, within a period commencing on the date of the
mortgage or loan agreement and ending two years after the date on which the
repayment of the principal sum borrowed is completed, where the income is
in respect of interest and service charge exempt from tax under section
42(2)(d) of the Income Tax Act, distribute sums not exceeding the exempt
interest and service charge to the members of the company and these sums
when so distributed are exempt from income or corporation tax in the hands
of the members of the company.

3. (1) In this paragraph, “company” means a company limited by

Ch. 81:01. shares within the meaning of the Companies Act.
(2) A company that is in receipt of income or profits that are
exempt from corporation tax under section 42(2)(b), (c) or (e) of the Income
Tax Act may—
(a) within twelve years after the date of completion of
construction of the newly constructed house, if the premiums
and rents would be exempt from corporation tax under the
said section 42(2)(b);

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(b) within two years after the date of sale of the newly
constructed house, if the gains or profits would be exempt
from corporation tax under the said section 42(2)(c); or
(c) within a period commencing on the date of the mortgage and
ending two years after the date on which the repayment of
the principal sum borrowed is completed, if the interest and
service charge would be exempt from corporation tax under
the said section 42(2)(e),
distribute sums not exceeding in the aggregate the exempt income or profits to
the members of the company and those sums when so distributed are exempt
from income or corporation tax in the hands of the members of the company.
(3) This paragraph and paragraphs 2, 4 and 4A apply only where the
company or approved mortgage company keeps and submits annually separate
accounts to the satisfaction of the Board showing—
(a) the income or profits of the company from the sources specified
in section 42(2)(b), (c), (d) or (e) of the Income Tax Act; Ch. 75:01.
(b) all expenses and outgoings wholly and exclusively
incurred in the production of the income or profits from each
such source;
(c) the debenture holders account mentioned in paragraph 4(3)
or 4A(3) as the case may require; and
(d) such other information as the Board may require.

4. (1) Where the income of an approved mortgage company is exempt

from corporation tax under paragraph 1(1), any interest payable by the
approved mortgage company on debenture borrowings by the approved
mortgage company for the purpose of financing the construction of houses, the
purchase of newly constructed houses, or the repayment of loans granted for
the construction of houses, is, subject to subparagraphs (2) and (3), exempt
from income or corporation tax in the hands of the debenture holders of the
approved mortgage company, if the interest so paid is derived from income of
the approved mortgage company exempt under paragraph 1(1).
(1A) Notwithstanding that an approved mortgage company sells to the
Home Mortgage Bank a mortgage loan the interest or service charge payable
under which is exempt from corporation tax under paragraph 1(1), if the
approved mortgage company uses the proceeds of the sale to finance by way of
mortgage the activities mentioned in paragraph 1(2)(a), (b) and (c) in
accordance with the agreement referred to in that paragraph any interest payable
on debenture borrowings which would have been exempt from income or
corporation tax in the hands of the debenture holders of the approved mortgage
company under subparagraph (1) but for the sale, shall continue to be so exempt.
(2) The period during which the interest paid to debenture holders is
exempt from tax under subparagraph (1) is a period commencing on the date

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when the principal sums are paid for the debentures and ending two years after
the date on which the principal sums secured by the debentures are deemed
repaid under subparagraph (3).
(3) For the purposes of subparagraphs (1) and (2) any sum repaid to
an approved mortgage company by the mortgagors who entered into mortgages
or the borrowers who entered into loan agreements after the issue of those
debentures shall, after deduction of any interest paid on those debentures, be
debited against the debenture holders account until the sums so repaid to the
approved mortgage company equal the principal sum secured by the debentures
and thereafter the debentures shall be deemed to have been repaid.
(4) Notwithstanding the provisions of this paragraph that relate to
the period during which the interest paid to debenture holders is exempt from
tax, the Minister may, if he thinks fit, in the instrument mentioned in
paragraph 1(2), make other provisions with respect to that period, and those
provisions when so made apply to the approved mortgage company.

4A. (1) Where the income of the Home Mortgage Bank is exempt from
corporation tax under paragraph 1(1) by reason of paragraph 1A(1), any
interest payable by the Home Mortgage Bank on debenture borrowings by the
Home Mortgage Bank for the purpose of financing the purchase of mortgage
loans from approved mortgage companies is, subject to subparagraphs (2)
and (3), exempt from income or corporation tax in the hands of the debenture
holders of the Home Mortgage Bank, if the interest so paid is derived from
income of the Home Mortgage Bank exempt under paragraph 1(1) by reason
of paragraph 1A(1).
(2) The period during which the interest paid to debenture holders
is exempt from tax under subparagraph (1) is a period commencing on the
date when the principal sums are paid for the debentures and ending two years
after the date on which the principal sums secured are deemed repaid under
subparagraph (3).
(3) For the purposes of subparagraphs (1) and (2), any sum repaid
to the Home Mortgage Bank by the mortgagors under mortgage loans sold to
the Home Mortgage Bank by approved mortgage companies after the issue of
the debentures referred to in subparagraph (2), shall, after deduction of any
interest paid on those debentures, be debited against the debenture holders
account until the sums so repaid to the Home Mortgage Bank equal the
principal sum secured by the debentures and thereafter the debentures shall be
deemed to have been repaid.
(4) Notwithstanding the provisions of this paragraph that relate to
the period during which the interest paid to debenture holders is exempt from
tax, the Government may, in the agreement mentioned in paragraph 1A(1),
make other provisions with respect to that period, and those provisions when
so made apply to the Home Mortgage Bank.

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5. For the purpose of claiming the exemption granted in accordance

with section 42 of the Income Tax Act, an approved mortgage company and Ch. 75:01.
a company within the meaning of paragraph 3, may apply to the Minister for
a certificate in the form prescribed under section 46 of the Income Tax Act.

6. In this Schedule—
“Home Mortgage Bank” means the Home Mortgage Bank established by the
Home Mortgage Bank Act; Ch. 79:08.

“Minister” means the Minister responsible for Housing.

SIXTH SCHEDULE Sections 6A and

10B(6).
[6 of 1989].
COUNTRIES IN RESPECT OF WHICH TAX
DEDUCTIBLE PROMOTIONAL EXPENSES AND MARKET
DEVELOPMENT GRANTS MAY NOT BE CLAIMED

Antigua Jamaica
Barbados Montserrat
Belize St. Kitts-Nevis
Dominica St. Lucia
Grenada St. Vincent
Guyana

UNOFFICIAL VERSION L.R.O.

UPDATED TO 31ST DECEMBER 2016