Trinidad and Tobago

Editorial Board

Desmond Mark 

Important new developments

• The Bail (Amendment) Act, 2019 amends the Bail Act, Chp 4:60 to deal with the granting of bail, consequent upon the commitment of various offenses, such as
• The granting of bail to a person previous convicted of an offense;
• a person who has a pending charge for possession of a firearm, ammunition of prohibited weapon;
• a person who committed an offence under the Sexual Offenses Act; and
• a person who has committed and offence under the Anti-Terrorism Act.

The Bill was assented to on 5 August 2019.

• The Dangerous Drugs (Amendment) Act, 2019 was amended to deal with charges/convictions as it relates to cannabis, such as
• the amount of the product for which can be charged, if one is found in possession;
• persons found to be cultivating cannabis; and
• smoking or using cannabis in public places.

The Bill was assented to on 18 December 2019.

• The Administration of Justice (Indictable Proceedings) (Amendment) Act was amended, to deal with
• the definition of 'arrest warrant';
• the definition of 'documentary exhibit';
• the definition of 'search warrant'; and
• admission of evidence.

The Bill was assented to on 8 January 2020.

Quick links

• Legal system
• Inheritance and succession
• Estate planning
• Taxation
• Residence and domicile
• Other relevant information

Legal system

Common law of England.

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Inheritance and succession

Succession

The general principles of succession are governed by the Succession Act.

Family law and defined inheritance rules

Yes. Where a person dies leaving a will their estate is distributed in accordance with their will upon receipt of a Grant of Probate.

In cases where there is no will an application for letters of administration must be made for the property to be distributed after payment of all debts, duties and expenses in accordance with the Administration of Estates Act to the persons who inherit, who include: surviving spouse and/or surviving cohabitant and the testator’s issue. Where there is no spouse, cohabitant or issue, the property is distributed to the next of kin in accordance with a specified order.

Probate process

The process begins with the compiling of an inventory of the assets of the testator with the respective values at the date of death. Thereafter an application for a Grant of Probate is made by an attorney (where the value of the estate exceeds TTD4,800) and submitted to the Probate Registry to facilitate the issuance of the grant.

The following documents must accompany the application:

• Affidavit of the executor(s), which must include the name(s), address(s) and occupation(s) of the executor(s); the name and address of the testator at the time of their death and the place of death.
• Original will of the testator and a certified copy of their death certificate.
• An affidavit of due execution signed by one of the witnesses who signed the will at the time of execution.
• The oath of the executor(s) to administer the estate honestly and fairly.

Mental capacity

This is covered under the Mental Health Act of Trinidad and Tobago 1975, as duly amended from time to time.

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Estate planning

Use of trusts in estate planning

Most of the relevant Trinidad and Tobago legislation relevant to estate planning is modelled on ‘old’ English legislation, in particular the Wills Act of 1837. The following acts and ordinances are also applicable:

• Administration of Estates Act, Cap 9:01.
• Succession Act, Cap 9:02.
• Wills and Probate Act, Cap 9:03.
• Trustee Ordinance, Cap 8, No 3.

Use of foundations in estate planning

NOT APPLICABLE

Types of entities

NOT APPLICABLE

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Taxation

Income tax system

Individuals are taxed on world income whether or not the foreign income is remitted to Trinidad and Tobago.

Personal income tax rates

The personal income tax rate is 25 per cent.

Corporate income tax rates

Corporate tax is chargeable on profits and short-term gains of companies incorporated in Trinidad and Tobago, this excludes companies that pay taxes under the Petroleum Taxes Act. Corporation tax is at present 25 per cent for registered companies and 35 per cent for petrochemical companies.

Capital gains tax

Capital gains accruing on the disposal of an asset within 12 months of acquisition are taxable under the Income Tax Act at a flat rate of 25 per cent. Otherwise, there is no capital gains tax (CGT).

Non-residents taxable on

Non-residents are taxed only on income received in Trinidad and Tobago.

Withholding tax rate (non-treaty)

Rates vary from 15 to 5 per cent and may be reduced further by double taxation treaties (DTTs). The full schedule of individual rates/countries can be accessed on the Ministry of Finance’s Website: www.ird.gov.tt

Withholding tax rate (treaty)

Typical rates: see above.

Taxation at death

The only tax to be settled on death is any outstanding income tax which may be due. There is no CGT and estate and succession duties were abolished on 1 January 1981.

Other taxes

No inheritance or gift taxes are levied in Trinidad and Tobago.

Tax treaties

Trinidad and Tobago has concluded the following DTTs: Brazil (2008), Canada (1996), CARICOM (1994), China (2004), Denmark (1969), France (1987), Germany (1976), India (1999), Italy (1971), Luxembourg (2001), Norway (1969), Spain (2009), Sweden (1984), Switzerland (1973), the UK (1983), the US (1971) and Venezuela (1997). All treaties can be downloaded from the Ministry of Finance’s website: www.ird.gov.tt.

Tax information exchange agreements

TIEAs are administered under the Information Exchange Agreements Act 30 of 1989. The Act can be accessed through the Ministry of Legal Affairs website: www.legalaffairs.gov.tt: www.legalaffairs.gov.tt 

Trinidad and Tobago has a treaty network of 24 jurisdictions consisting of 14 bilateral agreements that provide for the exchange of tax information and a multilateral (CARICOM) income tax treaty. This agreement has been signed by Trinidad and Tobago and ten other jurisdictions. All these agreements provide for the exchange of information.

Only one of Trinidad and Tobago’s agreements (a TIEA with the US) can be seen as meeting the standard. The TIEA with the US is modelled after the OECD model TIEA. It is also a declared agreement for purposes of the Tax Information Exchange Agreements Act, 2017. Trinidad and Tobago’s other agreements do not meet the standard due to the Board of Inland Revenue’s inability to access information with respect to exchange of information agreements that are not considered ‘declared agreements’.

Trinidad and Tobago has bilateral tax treaties with Canada, China, Denmark, France, Germany, India, Italy, Luxembourg, Norway, Spain, Sweden, the UK, the US and Venezuela. Trinidad and Tobago is also a member of the CARICOM multilateral tax treaty signed by 11 jurisdictions including Antigua and Barbuda, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, St Kitts and Nevis, St Lucia, and St Vincent and the Grenadines.

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Residence and domicile

Special rules on becoming resident

Foreign nationals wishing to reside in Trinidad and Tobago must apply for resident status through the Ministry of National Security.

Those eligible to apply for resident status in Trinidad and Tobago include:

• the spouse of a resident or citizen of Trinidad and Tobago;
• the parent or grandparent of a resident or citizen of Trinidad and Tobago who resides in the country and is willing and able to provide care and maintenance for the applicant;
• those working in Trinidad and Tobago under a work permit for five or more continuous years at the time of application; and
• a former resident or citizen of Trinidad and Tobago who wishes to become a resident again.

In order to apply, individuals must:

• obtain a police certificate of character from all countries of residence within the last five years and from Trinidad and Tobago. Certificates must not be dated more than six months before the date of application;
• have legally entered the country if you are currently living in Trinidad and Tobago;
• not be in a prohibited class as outlined in s.8(1) of the Immigration Act.

Special rules on ceasing residence

No special rules for termination of residence.

Domicile concept for gifts and inheritance

Individuals who are resident and domiciled in Trinidad and Tobago are liable to income tax on their worldwide income. Those who are resident but not domiciled are liable to income tax on their income arising in Trinidad and Tobago and on any income brought into the country from abroad. The concept of domicile is not statutorily defined but in common law refers to the country which is a person’s natural home, the one to which, if absent, they intend to return.

Taxation of holdings by non-residents on death and of gifts

• Gifts: there is no inheritance or gift taxes levied in Trinidad and Tobago.
• Death: not applicable.

Reporting/auditing requirements

Yes. Refer to the Companies Act, Cap 81:01.

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Other relevant information

Asset protection laws

No. Trinidad and Tobago has maintained the traditional approach providing for receivership where companies are in jeopardy and the Companies Act essentially codifies the position at common law.

Foreign currency restrictions

No. There are no foreign currency restrictions in place. In 1993, a floating rate system was introduced at TTD5.756 to USD1. Over the last two years, although increased, the rate has remained relatively stable, averaging TTD6.79 to USD1.

Foreign ownership restrictions

Yes. The Foreign Investment Act, 1990 provides for the acquisition by foreign investors of an interest in land or shares in local private or public companies and for the formation of companies by foreign investors. In summary, this Act makes the following provisions:

• a foreign investor is permitted to own 100 per cent of the share capital in a private company, but prior to the investment the Minister of Finance must be notified;
• foreign investors are permitted to own up to 30 per cent in total of the share capital of a local public company without a licence;
• a licence is required to permit foreign investors to own more than 30 per cent in total of the share capital of a public company;
• a foreign investor is permitted to own one acre of land for residential purposes and five acres of land for trade or business without having to obtain a licence; and
• no one is permitted to hold land in Trinidad and Tobago, or shares in any local company in trust for a foreign investor who requires a licence but who has not obtained one.

Amendments to this Act are being proposed.                   

AML/due diligence and other requirements and regulatory procedures for advisors

• To establish a trust.
• For incorporation.
• To open a bank account.

The Central Bank of Trinidad and Tobago as a regulator has issued guidelines on anti-money laundering and counter-financing of terrorism (AML/CTF). These take into account the country's Financial Obligations Regulations, 2010 as well as other legislation pertaining to AML/CTF, including:

• The Proceeds of Crime Act.
• The Anti-Terrorism Act (as amended); and
• Financial Intelligence Unit of Trinidad and Tobago Act, 2009.

Other points of interest 

The Proceeds of Crime Act provides special remedies against persons suspected of, charged with, or found guilty of drug trafficking. 

The Foreign Investment Act regulates investment by foreign investors in shares and land in Trinidad and Tobago. A foreign investor is defined as one of:

• An individual who is neither a national of Trinidad and Tobago nor another member state of CARICOM.
• A firm, partnership or an incorporated body of persons of which at least one-half of its membership is held by persons who are not nationals of Trinidad and Tobago or another member state.
• Any company or corporation that is not incorporated in Trinidad and Tobago or another member state or, if so incorporated, is controlled by persons referred to in paragraphs above or is deemed to be under the control of foreign investors (a company is so deemed to be controlled if at least half of the votes exercisable at a meeting of the company are vested in foreign investors or, in the case of a company having a share capital, at least one-half share of the nominal amount of its issued shares that carry voting rights are vested in foreign investors or, if it does not have a share capital, at least one-half of the number of its members are foreign investors, or it is, in fact, controlled by foreign investors).

Investment protection mechanisms

Bilateral investment agreements, which guarantee foreign investors a level playing field, exist between Trinidad and Tobago and France, Ireland, and the UK. A bilateral investment treaty and an intellectual property and rights agreement has been entered into with the US. Highlights of the treaty include the following:

• A requirement that the treatment of foreign investments be no less favourable than that accorded domestic investments (national treatment).
• A prohibition against expropriation of an investment without just compensation calculated (as the equivalent to the fair market value of the expropriated investment) immediately before expropriatory action.
• A requirement that investments suffering losses from war or similar events be accorded national treatment.
• A provision to allow financial transfers relating to the investments to be made freely and without delay into and out of each country.
• A provision to ease requirements relating to entry, sojourn and employment of aliens for establishing foreign investment of a substantial capital amount.
• A prohibition against performance requirements as a condition for investment.
• A provision for dispute resolution alternatives, including binding arbitration.

Sensitive areas

In the past, there has tended to be a bureaucratic approach in the public sector, which sees its role as procedural rather than facilitative. A lack of transparency in its operations can sometimes make it difficult to determine the criteria adopted in the decision making process. However, the government is actively seeking to sensitise the public service to the need to be more service oriented.

Key resources for further information

WEBSITES

• Fitzwilliam, Stone, Furness Smith and Morgan: www.fitzwilliamstone.com
• J.D. Sellier & Co: www.jdsellier.com
• M. Hamel Smith and Company: www.trinidadlaw.com
• Ministry of Legal Affairs: www.legalaffairs.gov.tt
• Board of Inland Revenue: www.ird.gov.tt
• Central Bank of Trinidad and Tobago: www.central-bank.org.tt 
• Global Forum on Transparency and Exchange of Information for Tax Purposes (OECD) www.oecd.org/tax/transparency
• Trinidad and Tobago Parliament: www.ttparliament.org &nbsp

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