BIR stands for Board of Inland Revenue and it is the tax authority in Trinidad and Tobago. All companies are legally obligated to register for a BIR file number to be used in payment of taxes and filing of returns.

Note: This number must be quoted on all correspondence to the Board of Inland Revenue.

The fiscal year or financial year for a company is determined by the company itself. Most companies use either the end of the calendar year (December 31) or the end of a quarter (March 31, June 30, or September 30) as their fiscal year end date

For a Sole Trader business in Trinidad and Tobago, the following taxes are required:

  1. Income Tax - The business owner is required to pay income tax on their profits earned from the business.
  2. National Insurance (NI) Contributions - As a self-employed person, the business owner is required to pay NI contributions to the National Insurance Board (NIB).


For a Partnership business in Trinidad and Tobago, the following taxes are required:

  1. Income Tax - The partnership itself is not taxed, but each partner is required to pay income tax on their share of the partnership profits.
  2. National Insurance (NI) Contributions - As self-employed persons, each partner is required to pay NI contributions to the National Insurance Board (NIB).
  3. Business Levy Tax - The partnership is required to pay a Business Levy Tax of 0.6% on its gross income.
  4. Green Fund Levy - The partnership is required to pay a Green Fund Levy of 0.1% on its gross income.
  5. Value Added Tax (VAT) - If the partnership is registered for VAT, it is required to collect VAT on its sales and remit this to the Inland Revenue Division (IRD) of the Ministry of Finance.

    Additionally, the partnership can deduct any VAT paid on purchases from the VAT collected on sales.

It's important to note that the tax requirements may vary depending on the specific circumstances of the business, so it's always best to consult with a qualified accountant or tax professional for advice.

Limited Liability Companies (LLCs) in Trinidad and Tobago are required to pay several types of taxes, including:

  1. Corporation Tax: This is a tax on the profits earned by the company. The current rate is 25%.
  2. Business Levy Tax: This tax is levied on companies with an annual turnover of $3 million or more. The current rate is 0.6% of the company's gross revenue.
  3. Green Fund Levy: This is a tax on companies engaged in activities that are deemed to have a negative impact on the environment. The current rate is 0.1% of the company's gross revenue.
  4. Capital Gains Tax: This tax is payable on the profits earned from the sale of assets, such as property or shares. The current rate is 25%.
  5. Value Added Tax (VAT): VAT is a tax on the sale of goods and services. The current rate is 12.5%.

LLCs are also required to file annual tax returns and to keep accurate records of their financial transactions.

 
 
 

Taxes are payable quarterly during each year on the following dates, 31 March, 30 June, 30 September, and 31 December.

It is important for a company to file its annual return to provide an accurate reflection of its state of affairs i.e. officers, shareholdings and any indebtedness. This is required to be filed with the Companies Registrar. The Annual Return should be filed whether or not a company is trading.

VAT stands for Value Added Tax and it is a tax that is applied to both goods and services in Trinidad and Tobago. VAT-registered businesses must collect VAT from customers, submit VAT returns and pay any VAT that they owe to the Inland Revenue Division of the Ministry of Finance. Businesses that sell goods or services worth TT$500,000.00 or more in a twelve-month period must register for VAT. Individuals and businesses must also register if they forecast sales of TT$500,000.00 or more in a twelve-month period.