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What are the two broad categories that tax is classified into??
- Direct taxes
- Indirect Taxes
What are the principal direct taxes in T&T?
- Corporation Tax
- Income Tax
- Unemployment Levy
- Business Levy
- Green Fund Levy
- Health Surcharge
- Hotel Accommodation Tax
- Insurance Premium Tax
- Land and Building Taxes
- Petroleum Profits Tax
- Savings Plan/Annuity/Pension Refunds
- Withholding Taxes
What is corporation tax?
A tax on the profits and short term gains of companies, it includes a business levy.
What is income tax?
A tax on income earned in Trinidad and Tobago
What is Business Levy?
A tax on gross revenue at a rate of .2% payable quarterly. Final liability is off set by corporation tax which is due at the end of the year.
What is Green Fund Levy?
A tax on the gross revenue at at a rate of 0.1%
What is health surcharge?
A tax which is charged on income and is applied to the provisions of health services.
What is Hotel Accommodation Tax?
A tax levied on hotel accommodation
What is Insurance Premium Tax?
A tax levied on the premiums paid to Insurance companies
What is Land and Building Tax?
A tax based on the assessed values of lands and buildings.
What is the Petroleum Profits Tax?
A tax on the profits earned by businesses in the course of petroleum operations falling under the Petroleum Taxes Act
What is savings plans/annuity/ pension refunds tax?
This is a tax levied on the refund of pension contributions, withdrawal from long term savings or surrender of annuity plans
What is withholding taxes?
A tax based on various income payments to non-residents
What are the principal indirect taxes?
- Value Added Tax (VAT)
- Customs and Excise duties
- Import surcharge
- Stamp duty
- Motor vehicle taxes
What is VAT?
A tax levied on imports and on the value of goods and services
What is customs and excise duties tax?
A tax on the import of manufactured goods
What is import surcharge?
A tax on imports
What is stamp duty?
A tax on instruments
What is Motor Vehicle Taxes?
A tax levied on the sale of motor vehicles.
What is chargeable income?
This is the total emoluments of the person for the year of Income less the appropriate deductions and exemptions under the Income Tax act.
What is the definition of an Employee
Any person in receipt of emoluments not being the holder of an office
What is the definition of an employer
Any person paying emoluments
What is the definition of emoluments?
Salary, wages, bonus, overtime
What is allowable deductions?
Any deduction allowed in accordance with the Income Tax Actin determining a persons chargeable income
What is an office?
This is a position not being an employment or place
What is a Board of Inland Revenue File Number?
A number assigned by the board of inland revenue to every employee form whose emoluments tax is deducted
What is a non resident individual?
An individual who is a non resident in T&T and who is in receipt of emolument income arising in T&T
What is a Tax Declaration Form (TD1)?
A form which is solely designed for the purpose of making appropriate tax deductions from emoluments
What is a TD4 certificate?
A certificate issued by an employer to an employee under Regulation 12 of the Income Tax Regulation on an annual basis.
What is the tax year?
This is the calendar year
What is the income tax act?
- Chapter 75:01
- It is legal for taxpayers to legally avoid taxes by taking full advantage of available tax deductions.
What is the filing date of taxes for individuals?
All oustanding taxes are to be paid by April 30th for the previous calendar year's income