Trinidad and Tobago: Trinidad and Tobago Chamber of Industry and Commerce (TTCIC) has announced the budget measures announced by the Ministry of Finance that came into effect from January 1, 2023.
According to the update shared, the following are the changes implemented from the first day of the year 2023.
1. PERSONAL INCOME TAX ALLOWANCE
The personal income tax exemption limit increased from $84,000.00 to $90,000.00 per year. All individuals earning $7,500.00 a month or less will now be exempt from income tax.
2. VAT REGISTRATION THRESHOLD
A surge in the VAT registration threshold from $500,000.00 to $600,000.00 to provide relief and support in the payment of VAT. This measure will positively impact the growth and development of the small as well as medium enterprises sector.
3. RENEWABLE ENERGY/BUSINESS REBATE FOR AGRICULTURE
Rebates of up to $25,000.00 will be offered for the implementation of renewable energy, including solar and wind energy, for approved agricultural holdings.
4. MANUFACTURING TAX CREDIT
The introduction of a single-time manufacturing tax credit for companies which invest in new machinery, production lines and equipment. This measure will further incentivise and create a more agile and robust manufacturing sector.
5. SUBSIDY FOR HOUSING AND VILLAGE IMPROVEMENT PROGRAMME (HVIP)
The introduction of a three-tiered subsidy system under the HVIP based on the land topography and an increase in the maximum subsidy (Government construction) applicable for the construction of a basic two-bedroom housing unit from $145,000.00 to the following levels;
- $165,000.00 for construction on flat lands;
- $170,000.00 for construction on undulating lands; and
- $175,000.00 for construction on hilly lands.
6. ELECTRONIC PAYMENT PROVIDERS AND E-MONEY ISSUERS
The offer of a one-time tax credit to approved electronic payment providers and/or e-money issuers up to a maximum of $50,000.00 to encourage the growth of online financial transactions and aid in the development of a digital economy.
7. RENEWABLE ENERGY
A one (1) year VAT waiver on new equipment for manufacturing companies utilising alternate energy technologies; renewable energy options, including gasifiers to use biomass and harnessing renewable energy through wind, solar and water. This will support the national agenda of increasing our renewable output by 10 percent by 2023.
8. PETROLEUM PROFITS TAX
A decrease in the rate of the Petroleum Profit Tax (PPT) from the current 35 percent to 30 percent for companies engaged in deep water exploration to incentivise crude oil production and sustain the current level of hydrocarbon reserves.
9. ENERGY: INVESTMENT TAX CREDIT
An increase in the Investment Tax Credit for energy companies from 25 percent to 30 percent to stimulate exploration and development-related investments in the energy sector.
10. SCHOOL TO WORK APPRENTICESHIP ALLOWANCE
The implementation of an Apprenticeship Allowance to encourage more businesses to hire persons aged 16 to 25 for short-term apprenticeships to provide them with relevant experience and exposure to the world of work.