Investment Facilitation

Investment Facilitation

To create the proper conditions to foster continued investment the Government has instituted a comprehensive Investment Regime that is supported by the relevant legislative framework.

Stages in the Investment Process
There stages in the investment process are:

Screening of Projects – This is the initial phase where investors communicate with officials of the relevant government departments about their investment plans.
Application for Investment Incentives – Investors then seek to benefit from incentives that are available for their specific project.
Approval – This stage includes obtaining approval from all the relevant statutory agencies such as:- - Town and Country Planning Division, Ministry of Planning, Housing and the Environment; - Factory Inspectorate Division, Ministry of Labour; - The Environmental Management Authority; and -The Regional Corporation in the district where construction will occur.
Implementation – This is where the project commences.

The Incentive Regime

Fiscal Exemptions

Import Duty Concessions

Tax Exemption for Approved Small Companies Status

Research and Development Facility

Loan Guarantees for Small/Medium Sized Enterprises

Venture Capital Incentives

Free Zones

Production Expenditure Rebate Program for the Film Industry

Revolving Investment Arrangement for the Entertainment Industry

Legislative Framework

The Fiscal Incentives Act, Chapter 85:01

The Corporation Tax Act, Chapter 75:02

The Income Tax (In Aid of Industry) Act, Chapter 85:04

The Value Added Tax Act, 1989

The Trinidad and Tobago Free Zones Act, 19 of 1988

The Customs Act, Chapter 78:01

The Tourism Development Act, 2000

Investment Processing Agencies

Business Development Company

Evolving Technologies Limited

Trade Licence Unit for Uniformity, MTI

Venture Capital Incentive Progamme

Trinidad and Tobago Free Zones Company Ltd

Trinidad and Tobago Film Company

Trinidad and Tobago Entertainment Company

1.Fiscal Exemptions

Benefits

Total or partial relief from Customs Duties

Exemption from VAT

Exemption from Non-resident Withholding Tax

Who Qualifies

A manufacturing or processing enterprise

Declared as an approved enterprise under Section 2 and 12 of the Fiscal Incentives Act

Contribute to T&T’s economic development

Be declared as an industrial factory for the manufacture of the approved products.

How to Apply

Application submitted to the Minister of Trade and Industry

Application form can be sourced here

2. Import Duty Concession

Benefits

Exemption from Customs Duties on machinery, equipment and raw materials

Who Qualifies

Manufacturing enterprises as listed on the Third Schedule of the Customs Act, Chapter 78:01.

Must be in one of the following sectors

Agriculture,

Forestry,

Fisheries,

Petroleum,

Tourism,

Manufacturing.

Contribute to T&T’s economic development

How to Apply

Application submitted to the Minister of Trade and Industry

Application form can be sourced here

3. Approved Small Company Status

Benefits

5 year tax credit under the Corporation Tax Act (Act No. 11 of 1988, amended by Act No. 2 of 2006).

Who Qualifies
Companies that:

have machinery, equipment and working capital valued at $1.5M or less;

is locally owned and controlled (nationals must beneficially own shares carrying more than one half of the voting power in the company and have the right to receive more than one half of the dividends or capital distribution);

are not be the result of the splitting or the reconstruction of an existing company, if incorporated on or after January 8, 1988;

do not have as a shareholder any other company holding shares either directly or indirectly through its nominees;

maintain accounts audited by a member of the Institute of Chartered Accountants;

have potential for creating permanent jobs;

have at least five (5) permanent employees; and

make optimum use of locally produced raw materials.

How to Apply

Applications are made through the Business Development Company Limited to the Minister of Trade and Industry who grants approval on a case by case basis. Information on applications can be found here.

4. Research and Development (R&D) Facility

Benefits

R&D grant of a maximum of TT$100,000 annually

Business alliances for a maximum of TT$200,000

Funding for patent registration to a maximum of TT$50,000

Who Qualifies
Companies that:

are locally owned and operated;

have been in existence for a minimum period of two (2) years;

are able to contribute a minimum of 33.33% of the cost of the project;

have been investing in non-property assets e.g. machinery, equipment and working capital of TT$50,000 - TT$5,000,000; and

are making annual sales turnover between TT$50,000 - TT$5,000,000.

How to Apply

Applications are made through the Business Development Company Limited to the Minister of Trade and Industry who grants approval on a case by case basis.

Application forms can be found here.

5. Loan Guarantees for Small/Medium Sized Enterprises

Benefits

The Loan Guarantee Program is a credit support instrument designed to assist start-up or existing businesses in securing loans.

The loan repayment period must not exceed 7 years; and

Financial support can be obtained for the following purposes:

Working capital financing;

Inventory purchases;

Revolving loan facility; and

Who Qualifies
Companies that:

Are owned and operated by citizens or residents of Trinidad and Tobago and involved in legitimate productive business activity and operated for profit;

Purchase of an existing business as a going concern

How to Apply

Applications are made through the Business Development Company Limited to the Minister of Trade and Industry who grants approval on a case by case basis. Application Forms can be sourced here

6. Venture Capital Incentive Programme (VCIP)

Benefits

A personal tax credit equal to the highest marginal rate of tax, currently 25% is granted to investors in venture capital companies.

Who Qualifies

Any individual must be making an investment in a venture capital company.

How to Apply

Applications are made to the VCIP, a statutory agency which falls under the purview of the Ministry of Trade and Industry.

7. Free Zones

Benefits

100% exemption from:

Corporation Tax

Customs duties on capital goods, parts and raw materials for use in the construction and equipping of premises and in connection with the approved activity;

Import and Export duties, taxes or licensing requirements;

Land and Building Taxes;

Fees for Work Permits;

Foreign currency or property ownership restrictions;

Capital gains, withholding and value added taxes; and

Duties on vehicles for use only within the Free Zone.

Who Qualifies

The first schedule of the Free Zones Act contains the list of activities permitted in a free zone. There are presently 12 permitted activities.

How to Apply

Application to operate in a Free Zone is made on specified forms to the Trinidad & Tobago Free Zone Company

8. Production Expenditure Rebate Program

Benefits

Rebates apply to the following areas of filmmaking:

Rental of local equipment, supplies and services;

Payments to the Police, Fire and Ambulance Services;

Wardrobe, props and related items;

Location fees;

Employment of local cast and crew;

Accommodation and food; and

Local travel and transportation costs.

Who Qualifies
Qualification is dependent on:

The total estimated expenditure in Trinidad and Tobago;

The level of employment of the Trinidad and Tobago crew; and

A script that does not portray Trinidad and Tobago in a negative light. The Production Expenditure Rebate Program provides cash rebates up to 30% for expenditure accrued while filming in Trinidad and Tobago.
How to Apply

Applications should be made to the Trinidad and Tobago Film Company Ltd.

Forms can be sourced here

9. Revolving Investment Arrangement

Benefits

Financial assistance of up to 70% of any project in the entertainment industry. The percentage will be decided on a case-by-case basis.

Who Qualifies

The applicant is required to provide documentation demonstrating an ability to raise the balance of funds not supplied by the company before any funds are disbursed.

The applicant and a significant percentage of the project team should be citizens or permanent residents of Trinidad and Tobago.

How to Apply

The application is submitted to the Trinidad and Tobago Entertainment Company Limited. Applications are treated on a case-by-case basis.

Single Electronic Window

The SEW is an IT based trade facilitation tool, which allows parties involved in the various elements of trade and cross border transport to lodge standardized information and documents at a single entry point, in order to fulfill all regulatory, import, export and transit-related requirements. It is an electronic one-stop-shop, where private stakeholders and approving government agencies can collaborate to process necessary permits and approvals online in a seamless and efficient manner.

Registering a Business

Information on the particulars of registering a company in Trinidad and Tobago including registration fees can be accessed from the Ministry of Legal Affairs.

Treaties
Investment Promotion and Protection Agreements (IPPAs)

The Government of the Republic of Trinidad and Tobago has signed Investment Promotion and Protection Agreements (IPPAs) or Bilateral Investment Treaties (BITs) with the following countries:

United Kingdom

Cuba

The United States of America

Canada

Spain

The People’s Republic of China

South Korea

Germany

Mexico

India

Double Taxation Treaties
Trinidad and Tobago has double taxation treaties with the following countries:

United States of America

Canada

United Kingdom

Germany

Denmark

France

Italy

Norway

Sweden

Switzerland

Venezuela

India

China

Luxembourg

Intra-Regional Double Taxation Agreement within CARICOM encourages and facilitates trade and investment by removing barriers which previously existed.