Small Business Tax in Trinidad and Tobago

Small businesses incorporated or registered in Trinidad and Tobago face a layered tax structure administered by the Inland Revenue Division (IRD). The three recurring obligations for most companies are corporation tax on net profits, a Business Levy on gross receipts, and a Green Fund Levy on gross receipts. VAT registration becomes mandatory once annual commercial supplies cross TTD 600,000. Understanding each obligation separately is important because the levies apply to gross revenue regardless of profitability. For country context and local professional listings, see the Trinidad and Tobago country overview.

What taxes does a small business in Trinidad and Tobago pay?

According to the IRD, every company conducting business in Trinidad and Tobago is potentially liable for corporation tax, Business Levy, and Green Fund Levy. Corporation tax applies to net chargeable income after allowable deductions. The Business Levy and Green Fund Levy both apply to gross sales or receipts, meaning they are due even in a loss year once the relevant thresholds are crossed. Employers also withhold income tax from employees under PAYE and remit National Insurance and Health Surcharge contributions. VAT registration is required separately once the turnover threshold is reached.

What is the corporation tax rate?

Per PwC's Trinidad and Tobago country summary (last reviewed 2 June 2026), the standard corporation tax rate for ordinary companies -- those that are not banks, petrochemical companies, or petroleum producers -- is 30% of chargeable profits. Petrochemical and banking companies pay 35%. Small and medium enterprises listed on the Trinidad and Tobago Stock Exchange benefit from a reduced rate: 0% for the first five years after listing, followed by 15% for the next five years, then the standard rate thereafter. The IRD administers corporation tax under the Corporation Tax Act.

What is the Business Levy and how does it work?

The Business Levy is charged at 0.6% of gross sales or receipts for each income year, according to the IRD. It functions as an alternative minimum tax: a company pays whichever is higher -- its corporation tax liability or its Business Levy liability. Two exemption windows apply. First, companies with annual gross turnover below TTD 360,000 are exempt. Second, companies registered after 1 January 1999 are exempt for their first three years of operation. Export manufacturers are also exempt effective 1 January 2024, per PwC's Trinidad and Tobago summary. Because the levy is based on gross receipts, not profit, it can create a cash-flow obligation in years when a business is trading at a loss.

What is the Green Fund Levy?

The Green Fund Levy applies at 0.3% on gross sales or receipts for all companies and partnerships carrying on business in Trinidad and Tobago, per the IRD. It is payable quarterly alongside Business Levy instalments. Unlike the Business Levy, the Green Fund Levy is not offset against corporation tax and cannot be deducted as a business expense when computing chargeable income. Sole traders are exempt; the levy applies specifically to corporate entities and partnerships. Revenue collected funds the Green Fund, a government environmental grant programme.

When must a business register for VAT?

VAT registration becomes compulsory when a business makes, or reasonably expects to make, commercial supplies exceeding TTD 600,000 in any consecutive 12-month period, according to the IRD. This threshold was raised from TTD 500,000 to TTD 600,000 effective 1 January 2023. Once registered, a business charges VAT at 12.5% on taxable supplies and files returns by the 25th of the month following each tax period. Registered businesses can deduct VAT paid on business inputs from VAT collected on sales, remitting the net amount to the IRD.

The corporation tax rate of 30% is among the higher standard rates in the Caribbean region. However, the Business Levy and Green Fund Levy -- totalling 0.9% on gross receipts combined -- are relatively modest. A business turning a healthy net profit will typically find corporation tax is the dominant obligation; a lower-margin or loss-making business may find the levies represent a meaningful cost. Quarterly instalment payments are required for corporation tax, Business Levy, and Green Fund Levy, due on 31 March, 30 June, 30 September, and 31 December. For country context and to locate a qualified Trinidad and Tobago professional, see the Trinidad and Tobago country overview.

This page summarises publicly available tax information and is not a substitute for advice from a qualified Trinidad and Tobago tax professional who can assess your specific circumstances.