Dividend and Investment Tax in Trinidad and Tobago

Trinidad and Tobago imposes tax on investment income selectively: the Income Tax Act (Chapter 75:01), administered by the Inland Revenue Division (IRD), exempts most domestic dividend flows from additional tax while subjecting payments to non-residents to withholding. A narrow short-term gains rule captures profit on rapid asset disposals, but there is no broad capital gains tax. The Business Levy (0.6% on gross revenue) and Green Fund Levy (0.3% on gross income) impose parallel obligations on companies regardless of profitability.

For the Trinidad and Tobago country overview, including residency rules and income tax brackets, see the jurisdiction guide.

Are dividends from Trinidad and Tobago resident companies taxable in the hands of a resident?

Ordinary dividends received by a resident individual from a Trinidad and Tobago resident company are exempt from income tax. The exemption applies where the distributing company has already borne corporation tax on the underlying profits. Preference dividends are excluded from the exemption and are treated as ordinary income subject to the applicable personal income tax rate (25% on chargeable income below TTD 1,000,000; 30% on the excess). Distributions from mutual funds established by locally licensed trusts receive the same exemption as ordinary dividends for resident individuals. Interest earned on savings and other accounts held with licensed banks and financial institutions is also fully exempt for resident individuals, removing the most common deposit-return from the individual tax base.

At the corporate level, dividends received by a Trinidad and Tobago company from another resident company are exempt from corporation tax and from the Business Levy, though they remain subject to the 0.3% Green Fund Levy on gross income. This creates a pass-through mechanism within domestic corporate groups: profits taxed once at the distributing company level are not taxed again in the hands of a resident corporate recipient.

What withholding tax applies to dividends paid to non-residents?

When a Trinidad and Tobago resident company pays dividends to a non-resident, withholding tax (WHT) applies under the Income Tax Act. The standard rate is 10% of the gross dividend. Where the recipient is a parent company holding 50% or more of the voting power in the distributing company, the rate is reduced to 5%. The payor company is responsible for deducting and remitting WHT to the Board of Inland Revenue within 30 days of the payment.

Double taxation treaties (DTTs) may reduce these rates further. Trinidad and Tobago has 15 bilateral DTTs in force, covering Brazil (2008), Canada (1996), China (2004), France (1987), Germany (1976), India (1999), Italy (1971), Luxembourg (2001), Spain (2009), Sweden (1984), Switzerland (1973), United Kingdom (1983), United States (1970), Venezuela (1997), and a multilateral CARICOM treaty (1994) covering member states. CARICOM treaty partners generally receive reduced or zero WHT on dividends. Specific treaty rates for the US, UK, and Canada vary by shareholder threshold and should be verified against the relevant treaty text. Where a statutory rate is lower than the treaty rate, the lower statutory rate applies.

What withholding tax applies to interest and royalties paid to non-residents?

Interest paid to non-residents is subject to WHT at 15% under the Income Tax Act where no treaty applies. Royalties paid to non-residents attract WHT at 15% in the absence of a treaty. Both rates are reduced by applicable DTTs: treaty rates typically range from 5-15% for interest and 5-15% for royalties depending on the treaty partner and payment category. Resident individuals and companies receive interest and royalties from domestic sources without WHT deduction.

Does Trinidad and Tobago impose a capital gains tax?

Trinidad and Tobago does not levy a general capital gains tax. Gains from the disposal of shares, real estate, and most other capital assets are not subject to income tax where the asset has been held for more than 12 months from acquisition. However, gains on the disposal of a chargeable asset within 12 months of its acquisition are taxable as ordinary income, included with other income and taxed at the standard personal or corporate rates. This means a resident individual realising a short-term gain on property would pay income tax at 25% (or 30% if total chargeable income exceeds TTD 1,000,000). One explicit carve-out exists regardless of holding period: gains on the disposal of any security in Trinidad and Tobago are exempt, as are gains on motor cars and household goods disposed of for TTD 5,000 or under. The practical effect is that equity investors trading listed shares face no capital gains exposure even on short-term trades.

What are the Business Levy and Green Fund Levy, and how do they affect investment companies?

Investment holding companies and other entities conducting business in Trinidad and Tobago face two levies in addition to corporation tax. The Business Levy is charged at 0.6% of gross revenue and applies where the levy exceeds the corporation tax liability for a given year, making it a minimum tax floor. Companies with annual gross revenue below TTD 360,000 are exempt. The Green Fund Levy is charged at 0.3% of gross income on all companies and partnerships doing business in Trinidad and Tobago, paid quarterly. Neither levy is deductible against corporation tax, and neither can be credited against the other. An investment company receiving inter-company dividends is exempt from Business Levy on those dividends but remains liable for Green Fund Levy at 0.3% of gross income, which includes dividend receipts.

The Finance Act 2025 (effective 1 January 2026) introduced a separate Commercial Asset Levy of 0.25% on total assets held by commercial banks and insurance companies. This levy does not apply to general investment holding companies but affects financial institutions managing investment portfolios on behalf of clients.

Treaty-reduced rates vary by partner country. CARICOM member states generally face the lowest rates. Taxpayers should confirm applicable treaty provisions with a qualified tax professional or the IRD International Tax Unit before relying on reduced rates.

Trinidad and Tobago participates in the OECD Common Reporting Standard (CRS) and has signed a US FATCA Model 1 intergovernmental agreement, meaning financial account information is exchanged automatically with treaty partner jurisdictions. Non-resident investors holding accounts in Trinidad and Tobago should expect their home-country tax authority to receive disclosure of account balances and income. A full overview of residency rules, corporate tax rates, and filing deadlines is available in the Trinidad and Tobago country overview.

The rules summarised here reflect the Income Tax Act Chapter 75:01 as amended through the Finance Act 2025. Investment structures and treaty applications are fact-specific; individuals and businesses with material exposure to Trinidad and Tobago withholding or income tax should consult a qualified tax professional with knowledge of local and international tax law.