A GUIDE TO INVESTING IN TRINIDAD AND TOBAGO - 2003
This Investment Guide to Trinidad and Tobago is written and updated by The Tourism
and Industrial Development Company of Trinidad and Tobago Limited (TIDCO) and
PricewaterhouseCoopers on behalf of TIDCO.
The Guide is revised annually. It is intended to provide investors and potential investors
with basic information on doing business in Trinidad and Tobago and the investment and
tax climate that exists.
While every effort has been taken to make the Guide as complete and accurate as
possible, it is not intended to be a comprehensive statement of the law or a substitute for
appropriate professional advice. Neither TIDCO nor PricewaterhouseCoopers can take
responsibility or liability for any errors of fact or opinion herein.
TIDCO and PricewaterhouseCoopers welcome any comments you may have to make the
Guide more useful to users in the future.
August 2003
TABLE INDEX
IX
ABBREVIATIONS
X
I. TRINIDAD & TOBAGO IN BRIEF
11
1.1.
Capital
11
1.2.
Land and Climate
11
1.3. History and Culture
1.3.1.
History
1.3.2.
Language
1.3.3.
Ethnic Composition
1.3.4.
Religion
11
11
3
3
4
II. TRADE INFORMATION
5
2.1. Exports and Imports
2.1.1.
Exports
2.1.2.
Imports
2.1.3.
Main Trading Partners
5
5
6
6
2.2. International Associations and Trade Agreements
2.2.1
CARICOM
2.2.2
International Organizations
2.2.3.
Caribbean Basin Initiative (CBI)
2.2.4
Cotonou Agreement
2.2.5.
Caribcan
2.2.6
CARICOM/Republic of Venezuela Agreement
2.2.7.
CARICOM/Republic of Colombia Agreement
2.2.8.
Cuba/Trinidad and Tobago Agreement
6
6
8
9
10
10
10
11
12
2.3.
12
Caribbean Market Facts
2.4. Transport Logistics
2.4.1.
Commercial and Industrial Areas
2.4.2.
Ports
2.4.3.
Airports & Routes
2.4.4.
Cargo Flights
2.4.5.
Sea Ports
2.4.7.
Roads
2.4.8.
Media
III. BUSINESS ENVIRONMENT
13
13
14
14
15
16
17
17
19
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Guide to Investing in Trinidad & Tobago
3.1.
Economic Trends
19
3.2
Key Economic Indicators
3.2.2.
Unemployment
3.2.3.
Inflation
3.2.4.
Balance of Payments
3.2.5.
Exchange Rate Stability
21
23
23
24
26
3.3.
26
Government’s Priorities, Role and Objectives
3.4. Energy Sector
3.4.1
Investing in the Petroleum Industry
3.4.2
Investing in the Petrochemical Industry
3.4.3
Investing in the Energy Sector in Trinidad and Tobago
3.4.4
The National Gas Company of Trinidad and Tobago Limited (NGC)
3.4.5.
Investing in Petroleum Retail Marketing
28
29
31
32
34
36
3.5
Agriculture Sector
36
3.6.
Tourism Sector
37
3.7. Investment Opportunities in Trinidad and Tobago
3.7.1
Food & Beverage Industry
3.7.2
Metals Processing Industry
3.7.3
Printing and Packaging
3.7.4
Chemicals, Pharmaceuticals and Plastics
3.7.5
Marine Industries
3.7.6
Tourism
3.7.7
Film and Entertainment Sector
3.7.8
Information Communication Technology / Electronics
37
37
38
38
39
39
41
42
43
3.8. Support Services
3.8.1.
Network of Support Services
3.8.2.
TIDCO
43
43
44
3.9.
45
Environmental Issues
IV. THE FINANCIAL SYSTEM
46
4.1.
Interest Rates
46
4.2.
Foreign Currency Accounts
47
4.3.
Access to Long-Term Finance
47
4.4.
Venture Capital Incentive Programme
47
4.5
The Capital Market - Bonds, Mutual Funds and Stock Market
4.5.1.
Bonds
4.5.2.
Mutual Funds
4.5.3.
Stock Market
48
48
50
50
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Guide to Investing in Trinidad & Tobago
V. POLITICAL SYSTEM
52
5.1.
Parliament, House of Representatives and the Senate
52
5.2.
Role of the President and the Prime Minister
52
VI. LABOUR
6.1.
Labour Force
53
53
6.2. Minimum Wages
6.2.1.
Normal Working Hours
6.2.2
Overtime Remuneration
54
54
54
6.3.
Retrenchment and Severance Benefits Act
55
6.4
Holidays
55
6.5
Trade Unions
55
6.6
Social Security
56
6.7
Occupational Safety and Health
56
6.8
Labour Exchange
56
VII. ESTABLISHING A BUSINESS
57
7.1. Principal Forms of Business
7.1.1.
Public and Non-Public Limited Liability Companies
7.1.2.
External Companies
57
57
57
7.2.
58
Share Capital
7.3. Procedures for Incorporating a Company in Trinidad and Tobago
7.3.1.
Registration Fees
7.3.2.
Incorporation Procedures
7.3.3.
Name Search / Name Reservation
7.3.4.
Articles of Incorporation
7.3.5.
By- Laws
58
59
59
60
60
60
7.4. Other Requirements
7.4.1
Comparative Financial Statements
7.4.2.
Corporate Records
60
60
61
7.5.
Management
61
7.6.
Audit Requirement
61
7.7.
Dividends
61
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Guide to Investing in Trinidad & Tobago
7.8.
Accounting Principles
62
7.9.
Registering for Value Added Tax (VAT)
62
7.10.
National Insurance, Income Tax and Health Surcharge
VIII. TRADE AND INVESTMENT APPROVALS AND PROCEDURES
63
66
8.1. Investing in Trinidad and Tobago
8.1.1.
Circumstances Under Which Licences Are Required
8.1.2.
Applications for Incentives
66
66
66
8.2. Import and Export Procedures
8.2.1.
Importing
8.2.2.
Exporting
67
67
68
8.3. Obtaining Commercial Property
8.3.1.
Office Space
8.3.2.
Constructing Properties
8.3.4.
Buying an Existing Property
71
71
71
74
8.4. Work Permits, Resident Status, Visas and Passports
8.4.1.
Work Permits
8.4.2.
Resident Status
8.4.3.
Visas
8.4.4.
Passports
74
74
76
76
79
8.5. Intellectual Property
8.5.1.
Intellectual Property
8.5.2.
Trade Marks
8.5.3.
Patents
8.5.4.
Industrial Designs
8.5.5.
Copyright
8.5.6.
Geographical Indications
8.5.7.
Layout Designs
8.5.8.
Unfair Competition
8.5.9.
New Plant Varieties
79
79
80
81
81
82
83
83
83
83
IX. INVESTMENT INCENTIVES
85
9.1.
Regulation
85
9.2.
Import Duty Concessions
85
9.3.
Tax Holiday - Fiscal Incentives Act
85
9.4.
Tax Holiday – Tourism Development Act
86
9.5. Investment Incentives - Free Zones Act
9.5.1.
Free Zones Company
87
88
9.6.
88
Construction Incentives
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Guide to Investing in Trinidad & Tobago
9.6.1.
9.6.2.
9.6.3.
Approved Property Development Company
Housing Act Exemptions
Other Construction Tax Incentives
88
88
88
9.7.
Special Classes of Company
89
9.8.
Loss Relief
89
9.9.
Special Tax Allowances for Exporters
89
9.10.
Venture Capital Act
90
9.11.
Non-Tax Incentives
90
9.12
Agricultural Incentives
90
X. THE TAX SYSTEM
92
10.1.
The Tax System
10.1.1.
Principal Taxes
92
92
10.1.2.
92
Basic Legislation
10.1.2. Basic Legislation
10.1.3.
Powers of The Board of Inland Revenue
10.1.4.
Administration
10.1.5.
Tax Year
10.1.6.
Tax Returns
10.1.7.
Assessment and Audit
10.1.8.
Disputes and Appeals
10.1.9.
Penalties and Interest
93
93
93
93
94
94
94
95
10.2.
Corporate Taxes
10.2.1.
Resident Companies
10.2.2.
Non-resident Companies
10.2.3.
Close Companies
10.2.4.
Tax Treatment of Partnerships
10.2.5.
Joint Ventures
10.2.6.
Taxable Income and Allowable Deductions
10.2.7.
Tax Treatment of Losses
10.2.8.
Groups of Companies
10.2.9.
Taxation of Branches of Foreign Companies
10.2.10. Corporate Tax Rates
10.2.11
Business Levy
10.2.12
The Green Fund Levy
10.2.13.
Reorganizations
10.2.14.
Payment of tax
95
95
95
96
96
96
96
103
104
104
104
105
105
106
107
10.3.
Withholding Taxes
10.3.1.
Dividends
10.3.2.
Branch Profits
10.3.3.
Interest
107
107
107
107
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Guide to Investing in Trinidad & Tobago
10.3.4.
10.3.5.
10.3.6.
Other Payments
Salaries and Wages
Collection of Tax and Penalties
108
111
111
10.4.
Double Taxation Relief and Tax Treaties
10.4.1.
Unilateral Relief
10.4.2.
Tax Treaties
111
111
112
10.5.
Tax Treatment Of Specific Industries
10.5.1.
Petroleum Operations
10.5.2.
Tourism Industry
10.5.3.
Yachting Services
112
112
113
113
10.6.
Taxes On Individuals
10.6.1.
Basic Principles
10.6.2.
Taxable Income
10.6.3.
Employment Income
10.6.4.
Dividends
10.6.5.
Capital Gains
10.6.6.
Loss Relief
10.6.7.
Allowable Deductions
10.6.8.
Personal Allowances
10.6.9.
Personal Tax Rates
10.6.10.
Special Tax Treatment of Foreign Nationals
10.6.11.
Tax Payments, Returns and Appeals
113
113
114
114
114
114
115
115
115
116
116
116
10.7.
Other Taxes
10.7.1.
Customs and Excise Duties
10.7.2.
Social Security Contributions
10.7.3.
Value Added Tax (VAT)
10.7.4.
Stamp Duty on Conveyance of Real Estate
10.7.5.
Real Estate Taxes
10.7.6.
Road Traffic Licence and Vehicle Transfer Tax
10.7.7.
Betting, Gaming and Lotteries
10.7.8.
Insurance Premium Tax
10.7.9.
Hotel Room Tax
116
116
116
116
117
117
117
117
118
118
XI. EXPATRIATE LIVING, CULTURE AND TOURISM
119
11.1.
Housing
119
11.2.
Medical Facilities
119
11.3.
Schools
11.3.1.
The Educational System
11.3.2.
Access to Schools
11.3.3.
International Schools
119
119
120
120
11.4.
Cost of Living
121
11.5.
Importing a Car into Trinidad and Tobago
122
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Guide to Investing in Trinidad & Tobago
11.6.
Obtaining a Driver’s Permit
123
11.7.
Animal Quarantine
124
11.8.
Tourism and Leisure
124
11.9.
Cultural Events
125
11.10.
Transport
125
11.11. Commercial Practices, Cultural Norms and Safety Tips
11.11.1.
Business Hours
11.11.2.
Business Attire
11.11.3.
Walking
11.11.4.
Sightseeing
XII. UTILITY RATES AND RAW MATERIAL CAPACITY
126
126
126
126
126
127
12.1.
Electricity Rates
127
12.2.
Water Rates
127
12.3.
Natural Gas Prices
128
12.4.
Raw Material Resources
128
12.5.
Telephone and Telecommunication Services
129
12.6
Internet Access
130
12.7.
Satellite Communications
130
12.8.
Postal Services
131
APPENDICES
132
INDEX
151
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Guide to Investing in Trinidad & Tobago
TABLE INDEX
I.
SECTION
TRINIDAD AND TOBAGO IN
BRIEF
TABLE / CHART NAME AND NO.
1.3.3.1. Ethnic Groups
1.3.4.1. Religions
1.4.
Map of Trinidad and Tobago
II.
TRADE INFORMATION
2.1.1.1. Major Exports
2.1.2.1. Major Imports
2.1.3.1. Main Trading Partners
2.3.1. Regional Markets
2.4.3.1. Country/Airline(s) Serving with Direct Flights
2.4.4.1. Airport Facts and Figures
III.
BUSINESS ENVIRONMENT
3.1.1.1. Real GDP Growth (%)
3.1.1.2. Growth in GDP by Sector
3.1.2.1. Unemployment Rate (%)
3.1.3.1. Inflation Rate (%)
3.1.4.1. Balance of Payments
3.1.5.1. (a) Average Exchange Rate (Annual, 1998-2003)
3.1.5.1. (b) Weighted Average Exchange Rate (Quarterly, 1998-2003)
3.2.1.1. Typical Gas Composition
IV.
THE FINANCIAL SYSTEM
VI.
LABOUR
4.1.1. Interest Rates (At First Quarter of 2003, Local Currency)
4.1.2. Interest Rates (At First Quarter of 2003, Foreign Currency)
6.1.1. Students Enrolled In Government And Assisted Schools
6.1.2. Labour Force Statistics
6.2.2.1. Average Wage Rates in Construction/Building Services Sector
6.2.2.2. Average Wage Rates in Furniture Manufacturing Sector
6.2.2.3. Average Wage Rates in Restaurant & Hotel Sector
6.2.2.4. Average Wage Rates in Construction, Electricity, Water &
Sewerage Services Sector
6.2.2.5. Average Wage Rates in Construction, Electrical & Plumbing
Services
6.2.2.6. Labour Rates for Selected Industries (US$)
6.5.1. Holidays
VIII.
TRADE AND INVESTMENT
APPROVALS AND PROCEDURES
8.2.2.1. Export Licences, Certificates and Procedures
8.3.3.1. Constructing A Building
8.4.3.1. Countries Having Visa Abolition Agreements with Trinidad
Tobago
X
THE TAX SYSTEM
10.3.4.1.Withholding Tax Rates
XI.
EXPATRIATE LIVING, CULTURE
AND TOURISM
11.4.1. Sample of Prices in Trinidad and Tobago
11.5.1. Motor Vehicle Tax
XII.
MISCELLANEOUS
INFORMATION
12.1.1. Electricity Rates
12.2.1. Water Rates
12.3.1. Natural Gas Prices
12.4.1 Raw Material Resources
12.5.1. Overseas Rates per Minute (in TT$) for Direct Dialling
ix
Guide To Investing In Trinidad & Tobago
&
ABBREVIATIONS
Abbreviation
ACP
ACS
ATV
B$
BIR
BWIA
Explanation
African, Caribbean & Pacific
Association of Caribbean States
Annual Taxable Value
Barbados Dollars
Board of Inland Revenue
BWIA International Airways Limited
Abbreviation
J$
LDCs
NAFTA
NAR
NIB
NIHERST
CIF
CARIBCAN
CARICOM
CARIRI
CBI
CDB
Cost Insurance Freight
Caribbean-Canadian Trade Agreement
Caribbean Community
Caribbean Industrial Research Institute
Caribbean Basin Initiative
Caribbean Development Bank
NIS
NZPIL
OAS
PATT
PAYE
PIDCOTT
COSTAATT
College of Science Technology &
Applied Arts of Trinidad and Tobago
Central Statistical Office
Caribbean Examinations Council
Delegated Management Agreement
Eastern Caribbean Dollars
PLIPDECO
United Nations Economic Commission
for Latin America and the Caribbean
Environmental Management Authority
TRIPS
TT$
FOB
G$
United Nations Food & Agricultural
Organization
Free on Board
Guyanese Dollars
GATT
General Agreement on Tariffs and Trade
TTMA
GCE
GDP
GSTP
IICA
General Certificate of Education
Gross Domestic Product
Global System of Trade Preferences
Inter American Institute For Cooperation
in Agriculture
Inter American Development Bank
UK
UN
UNC
UNDP
International Finance Corporation
United Nations International Labour
Organization
International Monetary Fund
International School of Port of Spain
UTC
VAT
United Nations Education Scientific &
Cultural Organization
Unit Trust Corporation
Value Added Tax
WASA
WHO
WIPO
Water & Sewerage Authority
World Health Organization
World Intellectual Property Organization
CSO
CXC
DMA
EC$
ECLAC
EMA
FAO
IDB
IFC
ILO
IMF
ISPS
PNM
SAS
BDC
TIDCO
TSTT
TTBS
T&TEC
UNESCO
Explanation
Jamaican Dollars
Less Developed Countries
North American Free Trade Agreement
National Alliance for Reconstruction
National Insurance Board
National Institute of Higher Education
(Research Science and Technology)
National Insurance System
New Zealand Post International Limited
Organization of American States
Port Authority of Trinidad and Tobago
Pay-as-you-earn
Property and Industrial Development
Company of Trinidad and Tobago Ltd.
Point Lisas Industrial Port Development
Company
People’s National Movement
Specialized Airline Services
Business Development Company
Tourism and Industrial Development
Company of Trinidad & Tobago Limited
Trade Related Aspects of Intellectual
Property Rights Agreement
Telecommunications Services of Trinidad
and Tobago Limited
Trinidad & Tobago Dollars
Trinidad and Tobago Bureau of Standards
Trinidad & Tobago Electricity
Commission
Trinidad & Tobago Manufacturers
Association
United Kingdom
United Nations
United National Congress
United Nations Development Programme
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Guide To Investing In Trinidad & Tobago
I.
TRINIDAD & TOBAGO IN BRIEF
Trinidad and Tobago is one nation state comprised of two islands, situated at the southernmost end of the
Caribbean chain, with Trinidad being only 7 miles (10 kilometres) off the coast of Venezuela. A former
British colony and now a Republic, English is the official language spoken among its population estimated
at mid-year 2002 to be 1,275,705. Trinidad is rich in many natural resources from oil and natural gas to a wide
variety of flora and fauna. Trinidad was once part of the South American mainland hence the richness of its
vegetation, and the distinct resemblance of its flora and fauna to that of the continent. Tobago has white
sandy beaches and clear turquoise waters due to the presence of coral around the island.
1 .1 .
Capital
The capital of Trinidad and Tobago and the main centre of government is Port of Spain, which is
situated in the northwest of the island of Trinidad. San Fernando, the second largest city in the
country, situated in south Trinidad, is considered “the industrial capital” of the country. The
principal administrative centre of Tobago is Scarborough.
1 .2 .
Land and Climate
Land
The island of Trinidad, the larger of the two, has an area of 4,828 square kilometres (1,864 square
miles) and is situated at 10.5 degrees north of the equator. Trinidad has a mountain range running
along the north coast of the island with the highest peak rising to 940 metres (3,085 feet) and rolling
hills in the south of the island. Much of the north coast is densely forested and is home to a
number of wild species. Many of the island’s more popular beaches are located on the north coast.
There is a flat central plain where sugar cane is grown and much of the island’s wet-lands can be
found.
Tobago is 300 square kilometres (116 square miles) in area and is situated just 32 kilometres (20
miles) off the northeast coast of Trinidad, 11 degrees north of the equator. Tobago has a central
hilly range with a flat area in the south and west of the island where much of the island’s tourism
has developed.
Climate
The islands are warm year-round, with a mean air temperature ranging between 32 degrees Celsius
(90 degrees Fahrenheit) at the maximum and 23 degrees Celsius (73 degrees Fahrenheit) at the
minimum.
There are only two seasons, a ‘dry’ that lasts from about January to May and a ‘wet’ that lasts
from June to December. The annual rainfall is approximately 2,000 mm and the average number of
hours of daylight is approximately 11 hours per day.
1 .3 .
His tory and Culture
1 .3 .1 . His tory
Before the arrival of Christopher Columbus in 1498 the islands were inhabited by
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Guide To Investing In Trinidad & Tobago
Trin id a d a n d To b a g o in Brief
Amerindian tribes mainly the Caribs and the Arawaks. The indigenous people were no
match for the bold Europeans but many aspects of Amerindian culture were preserved and
many towns, rivers and boroughs are named with Amerindian words Trinidad remained in
the hands of the Spanish from the 15th century until it was captured by the British in 1797.
During the Spanish rule, very few Europeans settled in Trinidad until the 1780’s, when
Spain, through the Cedula Act, invited Roman Catholics to settle in Trinidad with their
slaves in exchange for grants of land. This was during the time of the French revolution,
and many French accepted the offer made by the Spanish to colonise Trinidad.
French planters from the French islands of Martinique and Guadeloupe also settled in
Trinidad during this time. The plantation owners cultivated sugarcane, coffee and cocoa,
and brought with them African slaves to cultivate the land. The Cedula changed the face
of Trinidad dramatically in a few short years. When the British arrived, they met a country
ruled by the Spanish but inhabited by French speaking citizens.
Tobago’s history is very different from that of Trinidad. The island changed hands many
more times and was ruled at one time or another, by the Spanish, Dutch, French or British.
As a result of several hundred years of wars, pirate attacks, invasions and captures, most
bays in Tobago are overlooked by Forts. Many of these are preserved as historic
monuments, each with a story that closely relates the island’s history.
Trinidad became a British colony in 1802 and Tobago in 1814. They were enjoined
administratively by the British in 1889 and then politically linked as a joint colony in 1890.
With the abolition of slavery in 1834 planters found themselves without the traditional
cheap labour to cultivate their agricultural plantations. This shortfall in labour was met by
Indian indentured labourers who began to arrive in Trinidad in 1845. They emigrated from
Bengal, Bombay, Madras, Punjab and other provinces, and were comprised of both
Muslims and Hindus. Chinese and Portuguese from the island of Madeira, also came as
indentured labourers. Many Syrian and Lebanese also came to Trinidad and played an
important role in commerce, particularly in the textile and retail industries.
The history of Trinidad and Tobago is largely one of immigration and changing
economies. Each group of immigrants brought with them their cultural practices, religions,
languages and dress. Some festivals that make up Trinidad and Tobago’s unique culture
also owe their origin to the people who came; these include Carnival, Divali and Hosay.
Before the 19th century the islands, like most colonies, developed as primary producers,
supplying sugar and cocoa to be traded on the international market. Traders from
England, Scotland, Germany, France and the United States, came to Trinidad as salesmen,
entrepreneurs and bankers. Compared to the other islands, Trinidad was considered a
wealthy, cosmopolitan country.
The direction of the Trinidad and Tobago economy began to change in the 1850s with
the discovery of oil in Trinidad and the commercialisation of the petroleum industry
during the early 20th century. The first oil deposits were discovered in 1866 and crude oil
production had begun by 1908. In 1912, the first oil refinery in Trinidad was established.
In 1954, marine drilling began off the west coast of the island. In 1959, commercialisation
of natural gas began with the establishment of the first ammonia plant. By 1986, the first
commercial oil and gas discoveries were made off the east coast.
2
Guide To Investing In Trinidad & Tobago
Trin id a d a n d To b a g o in Brief
During the 1970’s with the oil boom, Trinidad and Tobago was well poised to use the
revenue generated from the increased production in the energy sector, to diversify its
economy. Today, petrochemical products represent the major source of foreign exchange
earnings for the country.
1 .3 .2 .
Lang uag e
English is the official language used in Trinidad and Tobago.
Spanish and French are taught at many of the nation’s schools. There are also
institutions in Trinidad, which offer opportunities to study Spanish, French, Hindi,
Japanese, Portuguese and German. Translation and interpretation services in German,
Spanish and French are available. For information on these services, persons may contact
the relevant foreign missions or:
The School of Languages
College of Science Technology and Applied
Arts of Trinidad and Tobago
6 Alcazar Street
Port of Spain
TRINIDAD
TEL:- 1-868-628-4600
Fax: 1-868-628-8088
1 .3 .3 .
Ethnic Compos ition
Trinidad and Tobago prides itself on being a cosmopolitan nation, where people of all
races and religions live and work in harmony.
Ethnic Group
Table 1.3.3.1
Ethnic Groups
Percentage of Population (1990 census)
East Indian Descent
40.3
African Descent
Mixed
Caucasian
Chinese
Other
39.6
18.4
0.6
0.4
0.2
Not Stated
0.4
Source: Central Statistical Office
* Based on sample survey and ext rapolation, figures do not add up due to rounding.
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Guide To Investing In Trinidad & Tobago
Trin id a d a n d To b a g o in Brief
1 .3 .4 .
Relig ion
Several religions are practised in Trinidad and Tobago. Roman Catholicism is predominant
according to official statistics.
Table 1.3.4.1
Religions
Religion
Roman Catholic
Other Christian
Hindu
Anglican
Presbyterian
Islam
Not Stated
Total
Source: Central Statistical Office
Percentage of Population (1990 census)
29.4
25.7
23.8
10.9
3.4
5.8
1.0
100.0
4
Guide To Investing In Trinidad & Tobago
II. Tra d e In fo rma tio n
II.
TRADE INFORMATION
Trinidad and Tobago is well poised to become a hub for transhipment and trading with South, Central and
North America as well as the Caribbean. This is due to its strategic location, air and sea links, its welldeveloped human resource base and the existing, as well as new, trade agreements with countries in these
regions. In particular, the Government is moving fast to establish trading relationships with its South
American neighbours.
2 .1 .
Exports and Imports
2 .1 .1 .
Exports
Exports from Trinidad and Tobago can be divided into 4 major areas:
§
§
§
§
Energy based including crude oil and refined petroleum products, methanol, urea, anhydrous
ammonia, iron and steel products;
Traditional agricultural exports including sugar, cocoa, coffee and citrus;
Non-traditional agricultural exports such as processed fish, shrimp, vegetables and fruit, as
well as cut flowers;
Manufactured goods of a wide variety from foodstuffs, alcoholic and non-alcoholic beverages,
to air-conditioning units and motor vehicle batteries.
The Energy sector has been the most significant contributor to foreign exchange earnings of the
country. Crude oil and refined products account for around 45% of total export earnings while
petrochemical exports account for around 30% of export earnings.
The country’s top exports in terms of value are provided in table 2.1.1.1.
Table 2.1.1.1
Major Exports
Exported Products
2002 Values
(F.O.B.) TT$000
Exported Products
2002 Values
(F.O.B.) TT$000
Beverages
412,687.6 Misc. Food preparations
73,723.0
Cereal, Cereal Preparations
172,474.0 Coffee, Tea, Cocoa, Spices
44,243.6
Fertilizers, Manufactured
250,693.0 Misc. manufactured articles
152,665.2
3,112,105.8 Sugar, sugar preps. & Honey
181,975.3
Gas natural & manufactured
Ind. Mach. Equip & Parts NES
116,107,2 Feeding Stuff for Animals
69,590.3
Inorganic Chemicals
1,634,381.6 Tobacco and Manufactures
53,108.6
Iron and steel
1,624,267.0 Perfume Material
125,507.7
Organic Chemicals
950,611.5 Manufactures of metals N.E.S.
95,892.2
Paper Manufactures
266,774.3 Fish, fish Preparations
53,903.0
7,943,331.9 Chemical Products N.E.S
30,154.9
Petroleum and Products
Feeding Stuff for Animals
69,590.3
Source: Trade Bulletin, Central Statistical Office, January - September 2002
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2 .1 .2 . Imports
The country’s top imports in terms of value are provided in table 2.12.1.
Table 2.1.2.1
Major Imports
Imports
2002 Values
(F.O.B.) TT$000
Petroleum Products
Ind. Mach. Equipment & Parts NES
Other Transport Equipment
Imports
2002 Values
(FO.B.) TT$000
4,858,958.0 Manufactures of Metal N.E.S.
347,027.2
1,629,727.0
Off. Mach. & Data. Pro. Equipment
1,443,880.7 Chemical Products N.E.S.
259,815.8
325,926.7
Road Vehicles
714,255.5 Power Gen. Mach. and Equip.
283,097.5
Iron and Steel
776,568.8 Textile Yarn, Fabrics etc
Mach. for Particular Ind.
460,467.8 Scientific Apparatus N.E.S.
242,799.6
236,781.1
Telecom Apparatus & Equip.
446,602.5 Cereal, Cereal Preparations
233,688.5
Paper Manufactures
377,250.9 Vegetables and Fruits
225,217.4
Misc. Manufactured Articles
370,346.5 Non-metal Mineral Manufactures
204,374.9
Source: Trade Bulletin, Central Statistical Office, January - September 2002
2 .1 .3 . Main Trading Partners
Table 2.1.3.1 Direction of Trade Exports 1998- September 2002 (%)
Countries
1998
United States
36.5
United Kingdom
2.0
Caricom
29.0
ECM
4.2
Latin America
9.6
Other Countries
18.7
Source: Central Statistical Office
2 .2 .
1999
38.9
2.3
25.8
3.4
9.4
20.1
2000
43.1
1.7
22.6
4.3
8.0
20.4
2001
43.4
1.6
24.1
3.2
7.5
20.2
2002
46.8
1.5
20.5
3.4
7.6
20.2
International As s ociations and Trade Ag reements
2 .2 .1
CARICOM
Caribbean integration began in the form of a political union with the establishment of the
West Indies Federation in 1958. After the end of the Federation in 1962, a limited free
trade agreement was conceptualised in the form of the Caribbean Free Trade Association
(CARIFTA) in May 1968. It was superseded by CARICOM when Barbados, Guyana,
Jamaica and Trinidad and Tobago signed the Treaty of Chaguaramas on July 4, 1973 to
create the Caribbean Community.
The CARICOM Treaty is twofold, in that:
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•
•
Firstly it is a Common Market which acts as a single country, with common barriers
against imports from outside through the instrument of a Common External Tariff
(CET)
Secondly, it is also a Community which a harmonised foreign policy and functional cooperation in areas such as education, health and transport. This Community has a
host of associate institutions for carrying out its functions.
It includes 15 members comprised as follows:•
•
•
13 English-speaking member countries – Barbados, Guyana, Jamaica and Trinidad and
Tobago (the More Developed Countries – MDCs), along with Antigua and Barbuda,
Belize, Dominica, Grenada, Montserrat, St Kitts and Nevis, St Lucia and St Vincent
and the Grenadines (referred to as the Less Developed Countries – (LDCs). The
Bahamas became the 13th member state in July 1983 but did not join the Common
Market
Suriname became the 14th member, and first non-English speaking partner in February
of 1995.
The 15th member is Haiti, however, it is not yet part of the Common Market and
Community, as it has not yet ratified to the Treaty.
Goods manufactured in CARICOM member countries are allowed duty free access into any
of the fifteen (15) member countries except the Bahamas and is subject only countryspecific taxes such as the Value Added Tax (VAT). CARICOM has also put in place a
system to harmonize the classification system and custom rates applied to imported goods
from outside the CARICOM region. This is referred to as the Common External Tariff
(CET). Under the CET, goods imported from outside the region into any CARICOM
member country are classified in the same way and are subject to same rate of duty in all
member countries. Since July 1st 1998, CARICOM tariff levels have been reduced to the
targeted range of 0 to 20 percent.
In 1989, the Heads of Government of CARICOM decided in the Grande Anse Declaration
to work towards the establishment of the Caribbean Single Market and Economy (CSME).
The CSME is a regional plan, which seeks to unite the markets and economies of all
participating countries through common arrangement and facilities. This was a desirable
objective, given the momentum of globalisation and the greater demands on co-ordination
and collaboration among small states. Basically, the CSME provides for the free movement
of goods, persons, services and capital.
Agreements
CARICOM – Dominican Republic
The Protocol implementing the Agreement establishing the Free Trade Area between the
Caribbean Community and the Dominican Republic was signed in April 2000. With the
entry into force of the Agreement (no date has been determined) more the 85% of the
trade between CARICOM and the Dominican Republic would be free of duty and
quantitative restrictions Negotiations for the liberalization of trade in services will begin in
the near future.
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CARICOM – CUBA
The Trade and Economic Co-operation Agreement between the Caribbean Community
(CARICOM) and the Government of the Republic of Cuba was signed in July 2000.
2 .2 .2
International Org anizations
Trinidad and Tobago is a member of the Organization of American States and the United
Nations and many of its specialised agencies, including the World Intellectual Property
Organization (WIPO), as well as the International Monetary Fund (IMF), the International
Bank for Reconstruction and Development (World Bank), the World Trade Organization
(WTO), the International Development Association, the International Finance Corporation
(IFC), the Inter-American Development Bank (IDB) and the International Labour
Organization (ILO).
This country is also a member of the regional Caribbean Development Bank (CDB) and the
Andean Development Bank, whose aim is to contribute to the economic growth of, and
co-operation among member states.
As a signatory to the World Trade Organization, Trinidad and Tobago benefits from the
main substantive agreements which fall within the purview of this multilateral trading
system, specifically the General Agreement on Tariffs and Trade (GATT), the General
Agreement on Trade in Services (GATS) and the Agreement on Related aspects of
Intellectual Property Rights (TRIPS).
Trinidad and Tobago benefits from a number of trade agreements with traditional trading
partners including the Lomé Conventions between the European Community and
developing countries of Africa, the Caribbean and the Pacific (ACP), US Caribbean Basin
Initiative (CBI) and the Caribbean-Canadian Trade Agreement (CARIBCAN).
The Government of Trinidad and Tobago is currently engaged in negotiations for the Free
Trade Area of the Americas (FTAA). This agreement is expected to come into effect by
2005 and will eliminate trade and investment barriers on virtually all goods and services
traded by 34 member countries of the FTAA.
Trinidad and Tobago has also entered into Bilateral Investment Treaties with the
Governments of Canada, France, the United Kingdom, the United States, Cuba, Spain,
China and South Korea.
Association of Caribbean States (ACS)
The Association of Caribbean States is a regional organization, which governs
consultation, cooperation and concerted action in the areas of trade, transport,
sustainable tourism and natural disasters.
The Convention establishing the ACS was signed on 24 July 1994, in Cartagena de Indias,
Colombia. Trinidad and Tobago officially headquarters this regional grouping comprising
25 member states and 3 associate member states. Eight other non-independent Caribbean
countries are eligible for associate membership.
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The ACS members include: Antigua and Barbuda, Bahamas, Belize, Colombia, Costa Rica,
Cuba, Dominica, Dominican Republic, El Salvadore, Grenada, Guatemala, Guyana, Haiti,
Honduras, Jamaica, Mexico, Nicaragua, Panama, St. Lucia, St. Lucia, St. Kitts,and Nevis,
St. Vincent and the Grenadines, Suriname, Trinidad and Tobago and Venezuela. Its
Associate Members include Aruba, France (on behalf of French Guiana, Guadeloupe and
Martinique) and the Netherlands Antilles.
2 .2 .3 .
Caribbean Bas in Initiative (CBI)
Trinidad and Tobago is a Caribbean Basin Initiative (CBI) beneficiary country. The CBI is
a broad programme to promote economic development through private sector initiative in
the Central American and Caribbean countries. Its major goal being to expand foreign and
domestic investment in non-traditional sectors, thereby diversifying CBI countries’
economies and expanding their exports. The Caribbean Basin Economic Recovery Act of
1983 (amended in 1990) provides customs duty-free entry to the United States on a
permanent basis for a broad range of products from CBI beneficiary countries.
The Beneficiary Countries of the CBI include: Antigua and Barbuda, the Bahamas,
Barbados, Belie, the British Virgin Islands, Costa Rica, Dominica, the Dominican Republic,
El Salvadore, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Monserrat, the
Netherlands Antilles, Nicaragua, Panama, St. Kitts and Nevis, St. Lucia, St. Vincent and
the Grenadines and Trinidad and Tobago. Please note that four additional countries –
Anguilla, the Cayman Islands, Suriname and the Turks and Caicos- are eligible but have
not formally requested designation. Puerto Rico and the US Virgin Islands are treated as
beneficiaries for the purpose of duty-free treatment.
⇒
The major elements of the CBI programme available to all CBI beneficiary countries are:
§ Duty-free entry to the United States for a wide range of products grown and
manufactured in CBI countries in order to stimulate investment and expanded export
production.
Eligible Products:
⇒ Electronic and electro-mechanical assembly
⇒ Handicraft, giftware and decorative accessories
⇒ Wood products, including furniture and building materials
⇒ Recreational items, such as sporting goods and toys
⇒ Fresh and frozen seafood
⇒ Tropical fruit products and winter vegetables
⇒ Ethnic and speciality foods, such as sauces, spices, liqueurs, etc.
⇒ Ornamental horticulture
⇒ Medical and surgical supplies
⇒ However, the CBI law excludes the following articles from duty-free entry status:
⇒ Most textiles and apparel1
⇒ Canned tuna
⇒ Petroleum and petroleum products
⇒ Footwear, except disposable items and footwear parts such as uppers
⇒ Certain leather, rubber and plastic gloves
⇒ Luggage, handbags, and flat goods
1 Un der CBI , t ex t ile p r o duct s m ade o f silk blen ds o r o f v eget able f ibr es o t h er t h an co t t o n m ay en t er dut y - f r ee; bilat er al
agr eem en t s m ay be n ego t iat ed t o p er m it dut y - f r ee en t r y o f cer t ain t r adit io n al h an d- lo o m ed, h an d- sewn ar t icles.
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⇒ Certain leather apparel
⇒ Watches and parts, except any component originated in a communist
country
§
CBI Textile programme: A special access programme (Guaranteed Access Levels) for
textiles and apparel that guarantees markets for apparel assembled from U.S. -formed
and cut material.
§
CBI Government Procurement: National treatment for producers in CBI countries in
bidding for certain types of U.S. Government procurement opportunities.
§
Exemption for CBI exports to the US from US Import Merchandise Processing Fees.
§
A wide range of US government, state government, and private sector business
development programmes, including trade and investment financing, business
missions, and technical assistance programmes, partially supported through US
foreign economic assistance.
2 .2 .4
Cotonou Ag reement
The European Community and its Member states signed a new Partnership Agreement
with the African, Caribbean and Pacific (ACP) states in Cotonou, Benin on June 23, 2000.
This agreement replaces the Lome convention, which had provided the structure for trade
and cooperation between the EU and the ACP since 1975.
The Cotonou Agreement extends preferential treatment to many products from African,
Caribbean and Pacific nations allowing them to enter the European Community duty-free
and without quota restrictions. Only products originating in the ACP nations qualify for
this preferential status.
2 .2 .5 .
Caribcan
Caribcan is the Canadian Government’s programme that provides duty-free access to the
Canadian market for most Commonwealth Caribbean exports.
Products, with the exception of textiles and apparel, footwear, luggage and handbags,
leather garments, lubricating oils and methanol, are eligible for duty-free status if they are
certified as being grown or manufactured in the Commonwealth Caribbean, defined as
having a minimum input of 60 percent of the ex-factory price of the goods (including
overhead and reasonable profits) originating in any of the Commonwealth Caribbean
countries or in Canada.
2 .2 .6
CARICOM/Republic of Venezuela Ag reement
The Agreement on Trade and Investment between the Caribbean Community (CARICOM)
and the Republic of Venezuela was signed on October 13, 1992 and entered into force on
January 01, 1993.
The fundamental objective of this agreement is to strengthen the economic and trade
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relations between CARICOM and Venezuela (hereafter referred to as “the Parties”)
through:
A) The promotion and expansion of the sale of goods originating in CARICOM through,
inter alia, one-way duty-free access to the Venezuelan market;
B) The stimulation of investments aimed at taking advantage of the markets of the
Parties and strengthening their competitiveness in world trade;
C) The facilitation of the creation and operation of regional joint ventures; and
D) The encouragement of mechanisms for the promotion and protection of investments
by nationals of the Parties.
As such, Venezuela has agreed to grant products originating in Member States of the
CARICOM, free access to its markets by means of the implementation of programmes of
tariff reduction and the elimination of non-tariff barriers according to detailed schedules
laid out in the agreement, with the exception of certain items including but not limited to,
beef, certain milk products, coffee & cocoa beans, vegetable oils & fats, orange juices,
oxygen, carbon dioxide, nitrous oxides, anhydrous ammonia, aluminium sulphate, other
carboxylic acids, medicaments constituted by a mixture of products prepared for
therapeutic or prophylactic use, urea, paints and varnishes based on modified synthetic or
natural polymers, dissolved in an aqueous or non-aqueous medium, insecticides,
disinfectants and a variety of iron & steel products.
In 2001, the Venezuelans requested a revision of the Agreement so as to effect reciprocal
preferential treatment for its exports into the Caricom market. Two Joint Council Meetings
between Venezuela and Caricom were subsequently held in October and December of
2002. Further negotiating rounds are to be scheduled to address the issue. When the
revised Agreement is finalis ed, qualifying goods imported into Caricom from Venezuela
will be accorded duty-free exemption.
2 .2 .7 .
CARICOM/Republic of Colombia Ag reement
The fundamental objective of this agreement is to strengthen the economic and trade
relations and technical cooperation between CARICOM and Colombia (hereafter referred
to as “the Parties”) through:
A) The promotion and expansion of the sale of goods originating in CARICOM and
Colombia with particular emphasis on exports from CARICOM states in the early
stages of the implementation of this Agreement;
B) The promotion and protection of investments aimed at taking advantage of the
opportunities offered by the markets of the Parties and strengthening their
competitiveness in the international market;
C) The facilitation of the creation and operation of regional joint ventures;
D) The development of technical and scientific cooperation activities which may be
agreed upon between the Parties;
E) The promotion of private sector activities, including business exchanges between the
Parties.
The Parties have agreed to promote a programme of trade liberalization taking into account
the difference in the levels of development between Colombia and CARICOM generally,
and, in particular, those countries designated the Less Developed Countries (LDCs) of
CARICOM.
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As such, Colombia has agreed to grant products originating in Member States of the
CARICOM, free access to its markets by means of the implementation of programmes for
the elimination of tariff and non-tariff barriers according to detailed schedules laid out in
the agreement.
In 2001, the Venezuelans requested a revision of the Agreement so as to effect reciprocal
preferential treatment for its exports into the Caricom market. Two Joint Council Meetings
between Venezuela and Caricom were subsequently held in October and December of
2002. Further negotiating rounds are to be scheduled to address the issue. When the
revised Agreement is finalised, qualifying goods imported into Caricom from Venezuela
will be accorded duty-free exemption
2 .2 .8 .
Cuba/Trinidad and Tobag o Ag reement
This agreement seeks to promote economic and social development in both countries
through specific projects of mutual interest. The economic and technical cooperation
consist primarily of:
•
•
•
•
•
•
•
2 .3 .
Promotion of trade and investment between the two countries;
Exchange of technical information;
Joint programmes for cooperation and technical development;
Exchange of experts and specialized delegations;
Exchange of economic and technical surveys and published research;
Award of scholarships and training courses for different fields and programmes as
requested by the Governments of both countries;
Other forms of economic and technical cooperation as agreed by the countries.
Caribbean Mark et Facts
Trinidad and Tobago’s strategic position at the cross-roads between the Caribbean and North and
South America, offers investors and exporters an ideal base from which to penetrate markets
throughout the region. In particular, many companies in Trinidad and Tobago have long
developed access to markets throughout the Caribbean region, through direct investment, joint
ventures or agency relationships, and are aggressively expanding their markets in the Latin
American region. In addition, Trinidad and Tobago’s Free Zone Act supports companies set up as
regional distributorships. Other advantages offered to investors and exporters include the ease of
access from Trinidad to all these countries through the air and sea links, the potential for break bulk
business and the financial and management capability in Trinidad and Tobago.
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Table 2.3.1.
Regional Markets
Country
Population 2002 a
(millions)
Barbados
0.269
2.1
-0.4
GDP Growth
Annual Rates
2003
(Projected
Figures)
1.5
Belize
0.236
5.5
N/A
N/A
Chile
15.589
3.3
2.1
3.5
Colombia
28.447
0.8
1.6
2.0
Cuba
11.273
3.8
N/A
N/A
8.677
6.7
4.2
2.5
Ecuador
13.112
1.1
3.4
2.0
Guyana
0.756
1.9
2.0
1.5
Haiti
8.668
2.0
N/A
N/A
Jamaica
2.621
0.2
2.0
2.0
Saint Lucia
0.151
0.2
1.0
1.8
Trinidad & Tobago
1.306
5.1
2.7
4.0
25.093
1.8
-8.8
-10.0
Dominican Republic
Venezuela
GDP Growth
Cumulative
Average Rates
1997-2001
GDP Growth
Annual Rates 2002
(Preliminary
Figures)
Source: United Nations Statistical Yearbook for Latin America and the Caribbean, 2002 Edition
a
2 .4 .
Figures based on projections using the average fertility hypothesis
Trans port Log is tics
2 .4 .1 .
Commercial and Indus trial Areas
Major industrial and commercial areas in Trinidad and Tobago are as follows:
Area
In Trinidad
Port of Spain
Activity
Commercial centre in the North; Main centre for Government; location of
seaport.
San Fernando
Commercial and Government centre in the South, approximately 50
kilometres (31 miles) from Port of Spain.
In Tobago
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Scarborough
Main commercial and Government centre in Tobago; Downtown
Scarborough is within close proximity to tourist resorts on the west coast.
Crown Point
Crown Point is the location of the international airport and is within close
proximity (5 minutes) to many tourist resorts.
2 .4 .2 .
Ports
The islands of Trinidad and Tobago are situated in an unrivalled geographic location,
enabling it to be transformed into an international centre for trade and transport.
According to leading economists, the North American Free Trade Agreement (NAFTA)
will promote a four-fold increase in cross-border trade between the USA and the Latin
American/Caribbean region - trade that will flow right past Trinidad and Tobago.
Furthermore, the country is perfectly situated to capture a share of the rapid trade growth
that is forecasted to occur between South America and Pacific Rim countries, acting as a
relay point for businesses in either region wishing to trade with Europe, redirecting cargo
through the Panama Canal. The Government and the management of Trinidad and
Tobago’s major ports - the Airports Authority, Point Lis as Industrial Port Development
Company (PLIPDECO) and the Port Authority of Trinidad and Tobago (PATT), are
determined to transform their facilities into world-class, self-financing transport hubs.
Please refer to the Official website of Port Authority of Trinidad and Tobago,
http://www.patnt.com/ , for further information.
2 .4 .3 .
Airports & Routes
There are two international airports: Piarco International Airport which is located in
Trinidad, about thirty-five minutes (25 km) from Trinidad’s capital Port of Spain, and
Crown Point Airport which is located in Tobago, about fifteen minutes (11 km) from the
capital, Scarborough.
Departure Tax
There is a departure tax of TT$100.00. Payment must be made in local currency only
(approximately US$16.00 in total).
Direct Flights
There are a number of direct flights into and out of Trinidad and Tobago. These include
flights to and from countries in the Caribbean, South America, North America and Europe.
The domestic airlines are BWIA and Caribbean Star, flies between the two islands several
times a day.
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Table 2.4.3.1.
Country/Airline(s) Serving with Direct Flights
Major Country/State
Airline
Caribbean
Antigua
BWIA, LIAT; Caribbean Star
Anguilla
LIAT; Caribbean Star
Barbados
BWIA, LIAT, Caribbean Star
Cuba
BWIA
Curaçao
Dutch Caribbean Airlines (DCA)
Dominica
LIAT; Caribbean Star
Dominican Republic
BWIA
Fort-de-France, Martinique
LIAT; Air France
Grenada
BWIA, LIAT; Caribbean Star
Kingston, Jamaica
BWIA
San Juan, Puerto Rico
LIAT, American Airlines; American Eagle
St. Lucia
BWIA, LIAT, Caribbean Star
St. Maarten
BWIA, LIAT
St. Vincent
LIAT; Caribbean Star
Tobago
BWIA, LIAT, JMC, Condor, British Airways,
Monarch; Caribbean Star, Virgin Atlantic
Tortola
LIAT; Caribbean Star
South / Central America
Caracas, Venezuela
BWIA, Aeropostal,
Georgetown, Guyana
BWIA, Surinam Airways; Universal Airlines
Margarita
Aeropostal; Avoir
Surinam
Surinam Airways; BWIA
Costa Rica
BWIA
North America
BWIA, American Airlines; Pace Airlines;
Miami, Washington, New York
Universal Airlines; Continental Airlines
Toronto, Canada
Air Canada, BWIA; Skyservice; Air Transat
Europe
London, Manchester ,England
BWIA, British Airways (from Tobago)
2 .4 .4 .
Carg o Flig hts
There are various cargo airlines servicing Trinidad, including Fine Air, and Amerijet.
Their schedules depend on demand. In addition, BWIA offers cargo services on their
scheduled flights, and courier services, such as DHL and FEDEX use Trinidad as a
consolidation point.
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Table 2.4.4.1.
Airport Facts and Figures
Piarco
Long. 61 deg. 20’ West;
Lat. 10 deg. 35’ North
Crown Point
Long. 60 deg. 50’ West;
Lat. 11 deg. 8’ North
Elevation
17.4m above sea level
13m above sea level
Runway Capability
Length: 3200m; Width: 45.7m
Load Classification: 2,961-3,600 KN
Length: 2744m; Width: 46m
Load Classification: 2,585.2
KN
Characteristics
Location
For information on airport fees and handling services contact:
The General Manager
Airports Authority of Trinidad & Tobago
Airports Administration Centre
Piarco International Airport
Golden Grove Road
Piarco
P.O. Box 1273
Port of Spain
TRINIDAD
TEL: 1-868- 669-8047-9
FAX: 1-868-669-2319.
2 .4 .5 .
S ea Ports
There are three major seaports in Trinidad & Tobago: the Port of Port of Spain, Trinidad,
the Port of Scarborough, Tobago, and the Point Lisas port, Trinidad. The Ports in
Trinidad are situated on the Western side of the island where bad weather rarely
interrupts operations.
The Ports of Port of Spain and Scarborough are managed by the Port Authority of
Trinidad and Tobago, while the port of Point Lisas, is managed by PLIPDECO, which also
manages an Industrial Estate and Free Zone Area.
The Port of Spain port is located near downtown Port of Spain. It covers 63.5ha and is
capable of handling all major dry cargoes, containers, general cargo, break-bulk, and
passenger traffic.
General Information - Port of Spain
∗ 11 Berths
∗ Total length of quay wall: 2,000m
∗ Container Terminal Berth Length: 410m
∗ Depth of Harbour: 10m
∗ Open Storage: 5ha
∗ Container Terminal Storage Area (including reefer storage): 10ha
∗ Stacking Capacity (containers): 120,000TEUs.
∗ Covered Storage (Shed): 4.2ha
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The Port in Scarborough is used mainly for inter-island cargo and cruise ships.
General Information - Scarborough
∗ Total length of quay wall: 468m
∗ Depth of Harbour: 9m
The Point Lisas Industrial Estate comprises 1000ha and about 44 sites. PLIPDECO’s port
was originally developed as a specialised bulk port to serve the Estate’s growing number
of industrial clients. The port has specialised installations for loading anhydrous
ammonia, methanol and urea in bulk, loading Direct Reduced Iron and discharging of bulk
iron ore. The port has since diversified with notable success, into handling containers
and general cargoes.
General Information - Point Lisas
∗ 4 berths (30m, 90m, 105m and 110m for general cargo, Ro-Ro, Lo-Lo not
including specialised handling terminals)
∗ Depth of Harbour: 6.6m, 2.5m, 7m, 7.8m respectively
∗ Open Container Storage: 1,000m TEUs,
∗ Ro-Ro trailers container storage: about 4,000 m2, 164 TEUs
∗ Empty Ro-Ro containers: 4,000 m2, 204 TEUs
∗ Full Lo-Lo containers: 10,000 m2, 119 TEUs
∗ Covered Warehousing at Port: 2,624 m2
∗ Covered Warehousing at Estate: 1,730 m2
Security is a top priority on the waterfront, especially in view of the rise in drug trafficking
and vessel hijacking, internationally.
Strict surveillance procedures have been
implemented to ensure the safety of cargo and passengers, whilst not hampering the
speed of operations.
2 .4 .7 .
Roads
Trinidad and Tobago has an extensive road network connecting all regions of the country.
A six-lane highway as well as the two-lane Eastern Main Road connects the city of Port of
Spain with the Piarco International Airport. A similar network of roads exists between the
Crown Point Airport and the town of Scarborough in Tobago.
There are approximately 6,800 km of main roads and 2,000 km of agricultural access roads
that are maintained by the relevant Government agencies in Trinidad and Tobago.
There is also an efficient road network connecting all Industrial Estates.
2 .4 .8 .
Media
Newspapers
There are three English-language daily newspapers: the “Daily Express”, “Trinidad
Guardian” and “Newsday.” There are also a host of weeklies including “Tobago News”.
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Radio
There are 15 national radio stations in operation in Trinidad and Tobago. Of these, 13 are
Frequency Modulation (FM) and 2, Amplitude Modulation (AM) stations.
Television
There are 3 local Television stations, 2 of which are fully commercial and one other that is
an information channel.
Cable Television
There is one cable network that provides over 60 channels.
Direct Television
Direct TV is the first high-powered direct-to-home satellite service to Trinidad and Tobago
and the Caribbean. Services being provided by the operator include: an interactive on
screen guide that lets users scan and select programming choices with their remote
controls, 56 television channels, 29 pay-per-view channels, 54 music-audio channels and 5
Spanish channels.
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III.
BUS INES S ENVIRONMENT
3 .1 .
Economic Trends
Trinidad and Tobago is a major supplier on the world market for methanol, urea and anhydrous
ammonia. In the 1970’s, Trinidad and Tobago’s economy was characterized by rapid economic
growth largely as a result of the increase in international oil prices and the subsequent increase in
domestic crude oil production and oil exports. Diversification strategies during this period focused
largely on the development of petrochemical industries and the establishment of energy-based
companies that would benefit from the plentiful supply of natural gas in Trinidad. .
During the mid 1980’s, with the decline in international oil prices and an economy that was still
heavily dependent on the income generated from this sector, the economy experienced a significant
decline in its export earnings and government revenue. To address this decline, a programme of
structural adjustment was implemented.
In the 1990s, attention was placed on increasing private sector investment and in particular,
stimulating activity in the Non-Petroleum economy. Key measures implemented since this period
included:
⇒ Macroeconomic policy and management aimed at achieving a more balanced government
budget, price, interest and foreign exchange rate stability, a sound financial system and
prudent debt servicing;
⇒ A tax reform programme aimed at removing the disincentives to private sector investment.
This included:
-
Reduction of Corporation Tax and Personal Tax; implementation of Value Added Tax
(VAT) and the development of a range of incentives under the Fiscal Incentives Act,
1979 and Income Tax (In Aid of Industry) Act, and establishment of free zone
incentives in 1995;
⇒ Restructuring, divestment and liquidation of a number of state-owned enterprises.
Divestment was done through the sale of some companies directly to foreign investors,
such as in the case of the Telephone Company of Trinidad and Tobago [now
Telecommunications Services of Trinidad and Tobago (TSTT)], Fertilizers of Trinidad
and Tobago (now PCS Nitrogen), and Trinidad and Tobago Urea Company, as well as
through the issue of shares on the stock market such as in the case of Trinidad Cement
Limited, the Point Lisas Industrial Port Development Company and more recently, National
Flour Mills with National Enterprises Limited in 2002.
⇒ Policies to promote “openness” of the economy which included:
-
Removal of foreign exchange controls and changing from a system of fixed
exchange rates to a system of a managed float, April 1993;
-
Liberalisation of the trade regime through removal of the licensing system and
negative list for almost all imported goods;
-
Reduction of tariff levels to a targeted range of 0 to 20% in line with the CARICOM
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Common External Tariff (CET) agreement and GATT;
-
Removal of customs duties on raw materials for approved industries;
-
Removal of duty or a maximum of 2.5% duty on plant and machinery;
⇒ Improvement in the legislative, regulatory and incentive framework for investment
including:
-
Implementation of a new Companies Act in 1995 based on the Canadian Business
Corporations Act, intended to ease commercial transactions;
-
Establishment of a one-stop-shop service at TIDCO for the application for incentives
and work permits and other approvals for new investors, geared towards minimising
“red-tape” and to providing an easy system for navigating State bureaucracy;
-
The development, passing and enforcement of intellectual property legislation;
-
Introduction of the Freedom of Information Act of 1999 in support of Transparency,
Accountability, Equality of Access and Empowerment and increased participation of
Governance.
⇒ Development and rehabilitation of the country’s physical infrastructure;
These reforms were implemented almost simultaneously with a world-wide move towards trade
liberalisation and a global economy.
For the new millennium, focus will continue to be on the energy sector as the catalyst for further
economic growth and diversification. In particular, an increase in the production of natural gas is
expected to promote further downstream industries, such as, ethylene-based industries.
In the non-energy sector, focus is being placed on international competitiveness, both in terms of
the ability to attract investment and the competitiveness of our products and services in the global
market.
Policy measures to address competitiveness will promote skills/knowledge development,
technology enhancement and market access. Specific proposals include: ⇒ Continued infrastructural development;
⇒ Continued expansion of energy based industries;
⇒ Development of La Brea Industrial Estate;
⇒ Energy Committee to address: •
•
•
Sale of natural gas directly to selected downstream industries;
Supply of gas to Caricom
New fiscal regime for gas to increase GOTT’s tax revenues.
⇒ Initiatives for manufacturing sector in the form of investment promotion and export
development;
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Guide To Investing In Trinidad & Tobago
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3 .2
Key Economic Indicators
In 1994, the Trinidad and Tobago’s economy began its recovery and has continued on a growth
path in both the petroleum and non-petroleum sectors since that time. In 2002, the economy
showed significant growth. Real output grew by 2.7%. Projected data for the year 2002-2004
indicates that the economy will continue to grow at an average of 5.9% in real GDP growth.
With per capita income of US $6,921 in 2001, Trinidad and Tobago is classified as a middle-income
developing country. Although the country has made considerable strides in the last two decades
to become one of the more wealthy and progressive countries in the Caribbean, much work has to
be done to achieve the developed nation status by the year 2020.
3.2.1
GDP Growth (%)
Growth in GDP at Constant (1985) Factor Cost by Sector 1998-2002
Petrochemicals
30.0
Agriculture
Manufacturing
Growth (%)
20.0
10.0
0.0
-10.0
1998
1999
2000
2001
2002
-20.0
Source: Central Bank of Trinidad and Tobago Economic Reports
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Table 3.2.1.2.
Growth in GDP by Sector
Growth in GDP at Constant (1985) Factor Cost by Sector 1998-2002
Sector
1998
1999
2000
2001
2002
5.4
8.1
1.1
0.7
10.7
23.2
17.5
3.1
11.3
6.9
Other Petroleum (Oil, etc.)
2.3
6.1
0.6
-1.8
11.7
Non- Energy
4.4
5.1
7.2
4.9
1.0
-10.7
12.0
9.5
-2.8
2.5
Manufacturing
4.1
3.4
6.7
4.7
-2.9
Electricity and Water
5.3
-0.6
9.6
4.0
10.8
13.9
7.9
8.0
4.9
5.0
4.3
10.5
7.0
0.9
-4.0
Energy
Petrochemicals
Agriculture
Construction
Transportation, Storage and Communication
Distribution
13.6
9.8
21.5
6.8
11.2
Finance, Insurance & Real Estate1
2.5
2.2
2.4
2.8
2.1
Government
3.2
-0.7
4.0
11.7
-1.1
Other Services 2
3.3
1.8
3.4
6.5
-0.6
4.6
5.8
5.7
4.0
3.2
Goods-Producing3
4.5
7.1
4.8
1.9
6.5
Non-goods Producing
4.5
4.4
6.6
5.9
0.1
GDP at Factor Cost
Memo Item:
Source: Annual Economic Survey 2002, Central Bank of Trinidad and Tobago
1
Includes Correction for Imputed Service Charge
2
Includes Hotels and Guest Houses, Education and Community Services and Personal Services
3
The goods-producing sectors as classified here are Petroleum, Agriculture, Manufacturing,
Electricity and Water and Construction.
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3 .2 .2 .
Unemployment
Chart 3.2.2.1.
Unemployment Rate (%)
Unemployment (%)
Unemployment (%)
20.0
15.0
10.0
5.0
0.0
1995 1996 1997 1998 1999 2000 2001 2002
Unemployment 17.2 16.2
(%)
15 14.2 11.7
12 10.8 10.4
S ource: Central S tatis tical Office
3 .2 .3 .
Inflation
The inflation rate in 2002 measured 4.2 percent compared with 5.5 percent in 2001.
Chart 3.2.3.1.
Inflation Rate (%)
Inflation Rate (%)
6.0%
4.0%
2.0%
0.0%
Inflation Rate (%)
1995
1996
1997
1998
1999
2000
2001
2002
5.3%
3.3%
3.6%
5.6%
3.4%
3.6%
5.5%
4.2%
Source: Central Statistical Office
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3 .2 .4 .
Balance of Payments
Notwithstanding, the volatility of the world economy and the relative volatility of
commodity prices, for the six-month period ending March 2002, Trinidad and Tobago’s
external position weakened, with a balance of payments deficit of US $3.5 million from a
surplus of US $1.8 million in the previous year. The country’s reserve position at the end
of August 2002, remained at a healthy US $2,759.2 million.
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Guide To Investing In Trinidad & Tobago
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Table 3.2.4.1.
BALANCE OF PAYMENTS, 1998 - 2002
(US - $Million)
Item
2002 p
1999
2000
63.6
968.8
718.0
420.7
Exports
2,264.6
2,815.8
4,290.3
4,304.1
4,033.6
Imports
3,007.6
2,752.2
3,321.5
3,586.0
3,612.9
417.6
329.1
166.1
227.2
185.0
78.2
80.9
34.4
90.7
32.2
134.0
126.8
65.7
59.8
52.0
Communication
91.9
102.8
30.8
24.2
24.4
Insurance
30.1
23.9
45.7
70.4
99.6
Other Government
77.5
-10.2
-13.9
-20.2
-16.7
5.9
4.9
3.4
2.4
-6.6
Income
-342.3
-399.9
-628.5
-475.7
-506.8
Investment Income
-342.3
-399.9
-628.5
-475.7
-506.8
22.3
37.8
37.9
33.3
46.8
-645.3
30.6
544.3
502.8
145.7
694.4
-0.4
217.9
-170.0
264.7
-146.3
484.7
-58.0
276.1
-3.2
(2) Services (Net )
Transportation
Travel
Other Services
(3)
2001r
1998
-743.0
(1) Merchandise (Net)
(4) Unrequited Transfers (Net)
(5) Current Account (1+2+3+4)
(6) Net Capital Movement (Net)
Portfolio Investment
Direct Investment
731.9
379.2
654.3
684.9
636.5
Other Private1
117.6
-174.9
-211.1
-292.3
-221.5
Commercial Banks2
Official Borrowing
Official Loans
State Enterprises Borrowing
Other Assets
(7) Net Errors & Omissions
(8) Overall Surplus or Deficit
(9) Offici al Financing
Government
Central Bank (Net)3
(10) Exceptional Financing
-49.7
73.7
-86.1
199.5
-80.1
-105.7
124.4
114.9
-34.7
-51.0
0.0
0.0
0.0
0.0
0.0
-5.7
-14.5
-61.0
-14.7
-4.6
6.0
0.0
0.0
0.0
0.0
31.5
-86.3
-368.0
-516.9
-372.9
80.6
162.2
441.0
470.6
48.9
-80.6
-0.3
-162.2
0.0
-441.0
3.5
-470.6
0.0
-48.9
-0.0
-80.3
-162.2
-444.5
-470.6
-48.9
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-10.2
0.4
6.7
5.5
1.6
1,909.7
2,455.2
2,594.4
Of which:
Debt Rescheduling
Memoranda Items
Current Account/GDP (per cent)
Gross International Reserves
(US$Mn)
1,184.5
1,389.9
(in months of imports)
4.4
4.5
5.8
7.4
7.9
Debt Service Ratio
9.9
8.0
7.9
3.7
4.3
SOURCE: Central Bank of Trinidad and Tobago
1
2
Rep r esen t s est im at ed sh o r t - t er m f o r eign cap it al.
As a r esult o f t h e ch an ge in t h e ex ch an ge r at e r egim e in 1 9 9 3 , co m m er cial ban k s ar e classif ied as p ar t o f p r iv at e sect o r
cap it al.
3
I n cludes Cen t r al Ban k h o ldin gs, I MF Reser v e T r an ch e an d SDR h o ldin gs, an d use o f Fun d ( I MF) Cr edit .
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Guide To Investing In Trinidad & Tobago
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r
r ev ised
p p r o v isio n al
3 .2 .5 .
Exchang e Rate S tability
The Government of Trinidad and Tobago took a decision to float the TT dollar with effect in 1993.
Removal of official foreign exchange controls was also announced simultaneously with the floating
of the currency. The country’s rate is now determined by the demand and supply for foreign
currency at the commercial banks. Some degree of influence is exerted, however, by the Central
Bank through its monetary policy on bank reserves and interest rates, as well as by the commercial
banks, through their discretion in the sales of foreign exchange. Such measures make the system
tantamount to a managed float.
Prior to 1993, the TT dollar was pegged to the US dollar. Shortfalls in the supply of foreign
exchange in the commercial banking system were met by drawing down from the Central Bank’s
foreign reserves.
The Central Bank’s intervention in the foreign exchange market for the fiscal year ended September
2002 was minimal given the strength of the T&T dollar. Since March 2002, the T&T dollar has
steadily appreciated and stood at TT $6.16 at the end of August 2002. The pound sterling and the
Canadian dollar on average stood at TT $9.17 and TT $4.02 respectively.
The exchange rate now stands at approximately US$1.00 = TT$6.30. In the case of Jamaica,
exchange rates stood at J$0.12724 to US$1.00 in 2003.
The Government recognizes that in order to maintain the stability of the Trinidad and Tobago
currency, the inflation rate would have to be contained as close as possible to the country’s main
trading partner, the United States. The Government has also recognized that avoiding persistent
fiscal deficits as well as having a sound macro-economic policy framework, are means to curbing
the pressure on the exchange rates of this country.
3 .3 .
Government’s Priorities , Role and Objectives
The Government’s vision for Trinidad and Tobago is to achieve developed country status by 2020.
Policies will be implemented to maintain a knowledge-based society with a globally competitive
technologically driven diversified economy, especially in the non-oil sector that will sustain full
employment, equal opportunity, growing prosperity, a secure life and the highest standard of living
for all its citizens.
Accordingly, Government’s major policy goals and objectives for the three-year period, 2002-2004,
will include:
§
§
§
§
§
Fostering an environment of steady economic growth while containing inflation;
Establishing a comprehensive social development framework that promotes human
development;
Generating increased permanent employment opportunities;
Enhancing the well-being of all citizens; and
Strengthening the protection and preservation of the country’s natural environment.
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Attainment of these goals and objectives will be facilitated by Government’s continued focus on
sound and prudent management of the Trinidad and Tobago economy. A summary of specific
policy objectives follows:
Savings and Investment – The main focus will be the strengthening of the regulatory and
supervisory framework within the financial sector, with the objective of promoting active capital
market development;
Fiscal Policy – This will focus on more efficient allocation of expenditure, improvement in taxation
administration, implementation of measures aimed at strengthening the performance of the public
sector enterprises in order to reduce reliance on transfers and increase dividends to Government,
policies aimed at achieving diversified growth, greater employment opportunities, low inflation, a
stable exchange rate, adequate foreign exchange reserves;
Monetary Policy – The focus will be on maintaining price and exchange rate stability and
protection of the external account balance;
Debt and Debt Management – Strategic management of the public debt portfolio in a manner that
will relieve tax payers from onerous interest payments on public debt.
In order to ensure a more effective monitoring and management of the country’s debt obligations,
the Ministry of Finance will establish a new Debt Management Unit. This Unit will be charged with
the responsibility of monitoring the growth of new debt and maintaining our debt levels within
sustainable levels.
Foreign Policy – Emphasis on investment and tourism promotion, avenues for technical cooperation, more effective global presence through negotiations for trade and cultural agreements,
investment protection and promotion agreements, double taxation treaties, scientific and technical
agreements, abolition agreements; trade and investment missions; appointment of more Honorary
Consuls; continued commitment to CARICOM; enhanced trade and technical co-operation with
Cuba and the Dominican Republic;
Trade and Industrial Policy – Focus on trade liberalisation process and the expansion of markets
for non-oil exports. Strategies include: enforcement of Anti-dumping legislation; Approval of
Investment Promotion Bill; development of Competition policy; co-ordination and facilitation of
investment and industrial promotion activities; pursuit of membership in the Free Trade Area of
Americas; creation of the Single Market and Economy; expansion of free zone activities including
two additional multi-user facilities in Caroni and Trincity; expansion of port facilities at Point Lisas.
Small Business Development – Acceleration of the development of small business through
implementation of the recommendations of the Cabinet appointed Task Force;
Infrastructure – The Public Sector Investment Programme (PSIP) will be the major instrument for
providing the infrastructural framework; private sector participation is envisioned to become
increasingly important in future infrastructural development, given the resource constraints of the
public sector. PSIP programme will aim at regeneration, enhancement and expansion of the
country’s health, education and housing sectors; Government will continue to support the
productive activities of the private sector through the expansion and enhancement of the country’s
infrastructure including – rural access roads and bridges;
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Guide To Investing In Trinidad & Tobago
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State-Owned Enterprises – Continued divestment of state enterprises will be pursued; Government
will retain or acquire equity in state enterprises only where such ownership is critical to the
achievement of policy objectives;
Public Utilities – Focus on the financial self-sufficiency and viability of the sector;
Water and Waste Water – Priority will be given to the commencement and completion of pipeline
laying projects to strengthen and expand water distribution to all.
The Desalination project will improve the delivery of service to the entire country
Electrical Power – Focus on the provision of facilitatory mechanisms and the removal of constraints
to investment in the transmission and distribution sub-sectors; new legislation.
Telecommunications – In order to exploit technology as a business and social facilitator,
Government will continue to invest, build and facilitate the development of information
technologies, telecommunications and internet infrastructures with the aim to make Trinidad and
Tobago an intelligent nation. Key strategies include: establishment of a Technology Park and
Innovation Park, the Liberalization of the telecommunications sector, the expansion of internet
connectivity and the implementation of the E-Commerce Action Plan.
The project will create a facility that will attract foreign investors searching for the right location to
establish “near shore operations and industries.
Postal Service – Emphasis on improving the quality service and operating on commercial
principles;
Transport – Government’s policies for the development of the transportation network therefore
covers both mass passenger transit and commercial transportation.
Over the period 2002 to 2004, therefore, the Government will undertake a Mass Transit Investment
Project. The project will seek to develop a 20-year Transportation Plan for Trinidad and Tobago.
§
Air transport policies include: Aviation Policy; Strategic Upgrading of the New Piarco
International Airport; refurbishment works at Crown Point International Airport with the aim is
to develop the International Airports of Trinidad and Tobago into the principle gateway
between North and South America.
Accordingly, over the three-year period, which commenced in 2002, Government will develop a
policy framework for an efficient and effective air-bridge between the two islands.
3 .4 .
§
Sea transport – maximise trans-shipment business, review of alternative options for inter-island
transport;
§
Land transport – extend provision to rural communities.
Energ y S ector
As in previous years the energy sector continues to be critical to the revenue generation of
Trinidad and Tobago; it continues to be the main engine of growth. The sector is undergoing
profound changes as a result of which Trinidad and Tobago is transforming from an oil-based to a
gas based economy.
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Guide To Investing In Trinidad & Tobago
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Trinidad and Tobago’s energy sector comprises onshore and offshore petroleum exploration and
production, refining, petroleum service companies, the petrochemical producers and liquefied
natural gas. Other high consumers of natural gas such as the utilities and iron and steel producers
are included in discussions about the energy sector. With approximately 594 million barrels of
proven reserves of crude oil and proven gas reserves estimated at 19.7 trillion cubic feet (tcf) and at
32.6 tcf, if probable and possible reserves are included, the energy sector will continue to play a
major role in the development of the economy.
For the fiscal year ended September 2002, annual production of crude oil was 43.4 million barrels,
5.6% higher than the previous corresponding period. Recent discoveries and the potential for
further significant finds also significantly enhanced the country’s oil and gas reserves. Natural gas
production was 16,743 million cubic meters, an increase of 2.5% over the previous period. This
increased production is mainly attributable to the commissioning of the Caribbean Nitrogen
Company 1 plant (CNC1) in July 2002 and an increased throughput from Atlantic LNG’s Train 1,
following a de-bottlenecking exercise in the earlier part of 2002.
As a result of planned developments in the downstream gas-based petrochemical sector, Natural
Gas production and utilisation is expected to increase by 20% per year over the next three years.
Contributing to the increased production is Atlantic LNG’s Train II and III as well as Phoenix Park
Gas Processors Plant. Production is expected to increase by approximately fifty percent by the end
of the year 2005, following the construction of Train IV, which will be the largest single Train to be
constructed in Trinidad and Tobago. There also exists the possibility of the construction of a fifth
LNG train, which will fuel further exploration and development in the sector.
Policies designed to ensure continued growth and development of the domestic energy sector
include: promotion of private sector investment in particular in exploration, development of heavy
crude oil reserves, plans for utilisation of idle storage capacity of the domestic refining industry
and to make Trinidad and Tobago an international terminal centre for crude oil; acceleration of the
process of de-monopolisation of the retail – marketing sector; exploration of the feasibility of
further expansion of LNG, ammonia, methanol, aluminium; consideration will be given to the
development of an ethylene complex, aluminium smelter and the introduction of gas to liquid
conversion technology to the country.
3 .4 .1
Inves ting in the Petroleum Indus try
Investing in the exploration and production activities is through a competitive bidding
process whereby exploration blocks are awarded.
Investors wishing to engage in these operations are required to make applications for
contracts and licences to the Ministry of Energy and Energy Industries as follows:
The Permanent Secretary
Ministry of Energy and Energy Industries
Riverside Plaza
Besson Street
P.O. Box 96
PORT OF SPAIN
TEL: 1-868-623-6708
FAX: 1-868-623-2726.
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Contracts and licences are advertised on the Ministry’s website http/www/energy.gov.tt,
in international publications and at international geological and petroleum conferences.
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There are generally three types of contracts and licences:
§
An Exploration Licence which grants the licensee the non-exclusive right to carry out the
petroleum operations as stated in the licence,
§
An Exploration and Production Licence which grants the licensee the exclusive right to explore for,
produce and dispose of petroleum in accordance with the terms of the licence, and
§
A Production Sharing Contract for the conduct of petroleum operations relating to the exploration,
production and disposition of petroleum within a prescribed contract area.
Several international petroleum companies have operations in Trinidad both in exploration and
production, independently or in joint ventures. These include:
Oil / Gas Companies in Trinidad and Tobago
Atlantic LNG
BHP Petroleum Trinidad
BP Trinidad and Tobago
British Gas Trinidad Limited
Conoco Inc.
Deminex Trinidad and Petroleum GMBH
PETROTRIN
Talisman Trinidad Holdings
Venture Production (Trinidad) Limited
Repsol Exploration
Texaco Trinidad Ltd.
Premera Oil & Gas
ELF Exploration Trinidad
Trinmar Ltd.
EOG Resources
Union Texas Trinidad Ltd.
Exxon Exploration and Production
Moraven
New Horizon Exploration Trinidad and Tobago
The National Gas Company of Trinidad and
Tobago
Vermilion Resources
Agip Trinidad and Tobago Limited
T’dad Exploration & Development
Petrobras International S.A.
Shell Exploration
3 .4 .2
Inves ting in the Petrochemical Indus try
Trinidad and Tobago is now a major producer and leading exporter in the world of methanol and
anhydrous ammonia. International companies such as PCS Nitrogen Inc. (formerly Arcadian),
Ferrostaal and Methanex have established successful petrochemical plants in Trinidad and
Tobago.
Preferred investment into this industry is in the second derivatives of methane and a more
diversified portfolio of products. Potential projects include:
§
§
§
§
§
Methanol downstream - formaldehyde, dimethyl ether, DMT, methylamines, MMA,
formaldehyde resins
Ammonia downstream - nitric acid, ammonium sulphate, UAN
Propane/propylene based - acrylonitrile, cumene, acrylates, iso-propyl alcohol, oxo -alcohols
Butanes/butylene based - butadiene, MTBE
Associated industries - sulphuric acid.
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Strategies and measures identified in the social and economic framework are as follows: §
§
§
§
§
§
§
§
§
Promote expansion in the Northern Basin onshore, in deeper waters off the coast and in
acreage off the west cost through negotiation of production sharing contracts with oil
companies;
Institute programs aimed at increasing oil production from existing onshore and offshore wells
through new capital and technology and through the launch of well activation programmes;
Implementation of Cross Border Field Development Plan between Trinidad & Tobago and
Venezuela through the establishment of bilateral treaties between both countries;
Open the market to multi nationals, removal of price controls and subsidies and granting of
licences to new entrants;
Improve competitiveness of the domestic refinery through further upgrade and establishment
of foreign strategic partner;
Review the fiscal incentives and pricing regime for the sale of natural gas through
rationalisation of incentives and transparent gas price regime;
Continue projects aimed at encouraging a switch from crude oil and refinery based fuels to gas
based fuels;
Strengthen the down stream gas-based sector by facilitating the developments of projects
such as an ethane based petrochemical project, additional methanol and ammonia plants, a gas
to liquids plant and an aluminium smelter plant;
Improve health, safety and environmental standards.
3 .4 .3
Inves ting in the Energ y S ector in Trinidad and Tobag o
Petrochemicals – Ammonia, methanol and urea
Trinidad and Tobago is now a major producer of methanol, anhydrous ammonia and urea.
International companies such as PCS Nitrogen, Point Lisas Nitrogen Limited (formerly
Farmland MissChem Limited) and Methanex have established very successful petrochemical
process plants at the Point Lisas Industrial Estate in Central Trinidad.
Ethylene Petrochemical Complex
This is predicated on several potential downstream benefits envisaged for the country in
addition to the opportunity to upgrade locally-derived Natural Liquid Gases (NLGs) prior to
export. NGC is determined to implement the core elements of such a Petrochemicals complex
by 2005-2006. Current strategy targets, within the time frame, the production of one or more
ethylene derivatives and possible derivatives of propylene of butylene as the major output.
This would be achieved by attracting a suitable significant player in the industry who would
be interested in serving as major investor/offtaker. It is envisaged that this investor would
actively assist in further development of the associated domestic downstream business sector.
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Iron and Steel
For the eight-month period October 2001 to May 2002, iron and steel production increased by
19.4% over the previous corresponding period. This increase was largely fuelled by the
reintroduction of ISPAT’s Direct Reduced Operation Module. In contrast, production of
billets declined by 19% primarily due to the non-operation of the company’s caster Module.
The production of wire rods declined by 4% for 438.5 to 423 thousand tonnes.
For the same period export of Direct Reduced Iron (DRI) increased by 36% from 738.6 to 1,003
thousand tonnes and was supported by ISPAT’s trading arrangement with the Canadian
Corporation ISPAT SIDBEC. The exports of wire rods declined by 6% as a result of the United
States imposition of Section 201 duties on the import of general steel articles inclusive of wire
rods. This action by the United States resulted in a cumulative 13 % increase in the duties
payable on imports of this product into the United States. There were no exports of billets for
the review period as world demand declined.
The average international prices of DRI increased from US$93.8 to US$95.53, reflecting
consistent world demand as sales of DRI competed successfully with sales of scrap iron. The
average price of wire rods increased from US$231.6 to US$249.1 per metric tonne in response to
the imposition of the new United States duties.
Aluminium
Efforts continue to attract investment for the development of an aluminium sector in Trinidad
and Tobago. Discussions continue with major players in the global industry.
Prospective investments include an aluminium smelter plant as investment continues to be
sought to grow the metals sector not only in the production of primary products, but
downstream derivatives as well.
Gas-to-Liquids (GTL) Complex
A GTL plant has the attraction of providing potential benefits for the country:
⇒ Conversion of it natural gas to a higher value added product for export.
⇒ Production of cleaner fuels for today’s increasing greener focus.
⇒ Utilizing existing oil infrastructure for an export product rather than
expensive new gas infrastructure and market arrangements.
⇒ Much higher scope than gas or petrochemicals.
⇒ Potentially more attractive option to LNG due to downstream benefits.
NGC is interested in attracting a suitable investor who would be willing to implement a 34000
bbl /d plant by 2006-2007.
New gas-based technologies
NGC has a stake in the timely implementation of viable market opportunities in areas of
emerging technology, such as fuel cells, methanol to olefins, dimethyl ether (DMF) etc. In this
regard, NGC is keenly interested in exploring relevant initiatives, inclusive of possible active
participation in technology/commercial developments with eligible interested parties.
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Downstream of existing industries and NGLs
The country is committed to a strategy of continually seeking avenues to upgrade its gasderived resources to the highest extent possible, prior to exporting a saleable product.
Accordingly, NGC seek opportunities for possible synergies with existing local gas and
petrochemical sector. This includes the fostering of partnerships and alliances with suitable
global industry participants who would have mutual interests in promoting and developing
viable downstream opportunities. These prospects involve projects downstream of methanol,
ammonia, NGLs and associated industries.
3 .4 .4
The National Gas Company of Trinidad and Tobag o Limited (NGC)
Increased Natural Gas production is attributed to the commissioning of the Caribbean Nitrogen
Company 1 plant (CNC!) in July 2002 and an increased throughput from Atlantic LNG’s Train
1.
Moreover, as a result of the planned developments in the downstream gas-based
petrochemical sector, natural gas production and utilisation is expected to increase by 20% per
year over the next three years. Contributing to the increased production is Atlantic LNG’s
Train II which was commissioned ahead of schedule in August 2002 and Train III, which was
also commissioned ahead of schedule in 2003 as well as Phoenix Park Gas Processors Plant
(PPGPL), which was expanded by 12 thousand barrels per day (bpd) of fractionation capacity
and 250 thousand barrels of additional product storage and ancillary facilities.
A gas to liquids plant and an aluminium smelter plant are also being considered as possible
investment options in an attempt to further diversify the natural gas portfolio. The feasibility
of establishing a port in Tobago for LNG exports in to the Caribbean is also under
consideration.
The NGC has the responsibility for natural gas-based industrial development. This function
involves:
§
Promoting Trinidad and Tobago both locally and abroad as a prime location for
investment in gas-based industries and seeking to attract such investments into the
country;
§
Monitoring and guiding major natural gas-based projects in the energy into the
implementation phase;
§
Advising the Government on an appropriate regime of incentives to stimulate the
development of natural gas-based downstream industries.
§
Evaluating proposals for natural gas-based projects in the energy sector and in which the
government envisages holding a participatory interest;
§
Applying any regime of incentives as decided by Government with respect to the
encouragement and development of downstream industries in the gas-based and
petrochemical sub-sectors.
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Marketing and Transmission of Natural Gas
NGC is the sole marketer and transporter of natural gas to consumers (this excludes gas sold to
Atlantic LNG). The natural gas purchased by NGC is produced offshore by three international
oil and gas companies and from NGC’s offshore compression facilities before being distributed
and sold to various consumers by NGC. In 2002, NGC has 117 customers, 98 of who are in the
light industrial / commercial sector. NGC owns and operates an extensive transmission and
distribution network of over 620–KM of pipelines. It is projected that there will be an adequate
supply of natural gas for additional gas-based projects in the future.
Marine, Port and Land Infrastructure Development
Through it subsidiary NEC, NGC owns and manages the harbour and specialized port and
marine facilities at Port Point Lisas, which handles all the import and export needs of the
large gas-based plants located on the estate. NGC is also involved in site development for
large gas-based industries willing to establish their operation in Trinidad and Tobago.
Natural Gas Pricing
Pricing for natural gas is done on a case-by-case basis and each contract is negotiated
between NGC and the proposed user. Payment is made in US dollars. Customers are
billed monthly through measurements and invoices prepared by NGC.
Table 3.4.1.1. shows the typical composition of natural gas sold to consumers in Trinidad
and Tobago. A calorific value of 1,33 btu per cubic foot can be used for any preliminary
analysis that needs to be done. Natural gas is supplied to consumers at a pressure not
less than 250 psi.
Table 3.4.4.1.
Typical Gas Composition
COMPONENT
MOLE PERCENT
Methane (C1)
Ethane (C2)
Propane (C3)
Carbon Dioxide (CO2)
Nitrogen (N2)
Total
Source: National Gas Company of Trinidad and Tobago
96.2
3.3
0.1
0.4
0.0
100.0
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Potential gas-based projects can be discussed with:
Manager, Market Development Business Group
The National Gas Company Trinidad and Tobago Limited
Orinoco Drive
Point Lisas
COUVA
TEL: 1-868-636-4662,4680 Ext: 373
FAX: 1-868-679-2384
E-Mail: omarg@ngc.co.tt
Website: www.ngc.co.tt
Mailing Address:
P.O. Box 1127
PORT OF SPAIN
3 .4 .5 .
Inves ting in Petroleum Retail Mark eting
In 1997 cabinet accepted the report of the Petroleum Retail Committee that was formed in 1996 to
conduct a comprehensive study of the operations of the local Petroleum retail sector.
A key condition of the report was the phased liberalisation of the retail sector, as follows:
Phase I – De-monopolisation, with local competitors being allowed entry (1997-1998)
Phase II - Foreign competitors allowed entry (1999-2000)
Phase III -Deregulation (2002)
Phases I to III would also be accompanied by the gradual removal of subsidies and complementary
adjustments in prices and taxes.
3 .5
Ag riculture S ector
Domestic agriculture grew by 1.8% for the six-month period ending March 2002. Critical goals for
the sector will be the achievement of food and nutrition security, employment creation, poverty
alleviation, sustainable natural resource management and enhancement of contribution of
agriculture to gross domestic output and foreign exchange earnings. Strategies include –
increasing access to credit; reforms in land use policy and administration, agri-business
development, modernisation and restructuring of Caroni (1975) Limited, the country’s largest agribusiness and producer of sugar cane.
A strong agricultural sector is important and the vision for 2020 will focus on enhancing the
physical infrastructure namely marketing facilities, water management, flood control, irrigation and
agricultural access roads and land settlement.
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3 .6 .
Touris m S ector
Trinidad and Tobago is situated at the crossroads of North and South America and Europe. The
island nation has proven to be a natural harbour for a multiplicity of persons – a richness of races –
which has served to create one of the most cosmopolitan societies in the world. That characteristic,
more than any other, gives Trinidad and Tobago the potential to become world class tourism
destination – a destination where people, places and activities inspire the imagination and fuel the
desire for the exploration of new things experiences and ideas that enrich the human life. It has
been said that Trinidad is the “un-Caribbean Caribbean”. The destination is vibrant and urban yet
cool and serene and possesses an amazing wealth of natural resources. Trinidad’s rich natural
resource base is the key to the country’s diversified economy. State of the art communications and
technologies are rapidly being implemented to keep the island at the cutting edge of the global
development. These attributes, coupled with good infrastructure and a highly literate labour force,
provide a solid foundation upon which a thriving Tourism industry may be fashioned.
3 .7 .
Inves tment Opportunities in Trinidad and Tobag o
Based on Government’s policy objectives over the medium term, the changes made in the legal and
regulatory framework in several key industries outside the petroleum sector, and the trends in the
economic and business environment, a number of specific investment opportunities exist in
Trinidad and Tobago in the following industries:
3 .7 .1
Food & Beverag e Indus try
The food and beverage industry is a very diverse. It includes meat processors, poultry, milk and
milk products, citrus processors, fruit and vegetables processors, flour and animal feeds, bakeries,
confectioneries, snack foods, ice cream, and alcoholic drinks etc. From employment viewpoint, this
sector is very important as some 13,000 people are employed in almost 500 establishments, many of
which were very small.
The type of ownership by the local business community in the food-processing sector is either
sole proprietorships, or limited liability companies. There are four multinationals, namely Nestlé
Trinidad Ltd., Lever Brothers West Indies, Caribbean Bottlers Ltd. (Coca-Cola) and Nabisco Royal
Inc. In the early era of the industry, there were other multinationals that established joint ventures
in Trinidad and were subsequently bought out by local investors or by Government-owned
concerns.
For established exporters, the production process tends to be semi-automated with a few fully
automated lines in the larger plants. Technology in the medium sized plants is considered is
considered fairly sophisticated and up to date by international standards. A study undertaken by
CESCO International Services in 1998 for the TTMA, and supported by TIDCO, found that foodprocessing operations visited by the consultants were typically up to the standards of similar
(smaller) Canadian plants. Product formulations are based on international standards and, in most
cases, the end product is homogenous with some variations in sizes and flavour.
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Whilst the food and beverage sector uses sugar as one of its key ingredients, experience in supply
of indigenous inputs has not been dependable. There are often occasions when sugar, cocoa,
coffee, fruits and herbs are not available in commercial quantities. Exporters are then required to
supplement the local supply with imported inputs in order to maintain a standardised formulation
and product consistency.
The UNIDO report stated that conditions in the agricultural sector have constrained a successful
domestic supply response, with most raw materials used by the sector still being imported.
Agro-Industry
Vac packed fruit
Prepared meals/ frozen foods with low fat content
Exotic and ethnic foods, herbs, spices and condiments
100% squeezed fruit juices in all varieties
Low alcohol flavoured soft drinks
Carbonated fruit flavoured soft drinks
Chocolate and confectionery
Soft drinks
Processed fish products
3 .7 .2
Metals Proces s ing Indus try
The metal processing sector in Trinidad and Tobago evolved around the developments in the oil
fields and later in the petrochemicals sector. The industry developed a downstream potential with
linkages to SMEs in the wider metal processing and fabricating sector through the initial
investment by the state in a direct reduced iron (DRI) plant and an integrated steel mill which
supplied the basic raw materials DRI and wire rods, to the downstream processing industries. The
plant was later divested to a foreign investor, the Ispatt Group, which is ranked in the top five steel
companies in the world.
Investment Opportunities
• Iron and steel production -ordinary and special hot finished products, tin plate and thin cold
rolled steel
• Tube manufacture
• Metal products-structural steel, tanks, forgings, tools, fasteners, stainless steel, etc
• Agriculture implements, construction materials, shelving, cabinets, consumer products
• Machinery
• Mechanical engineering services
3 .7 .3
Printing and Pack ag ing
The printing and packaging industry is generally considered to be at the mature stage in Trinidad
and the market is well supplied with competing enterprises, from relatively large scale firms to
cottage scale operations. Since 1989, the industry has experienced a level of consolidation with
smaller companies either closing or being taken over by larger concerns. The process consolidation
and rationalization is a feature of the industry world-wide, and is continuing in Trinidad as smaller
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firms are unable to afford the large capital investment in state of the art computerized automated
technology, and advanced technical skills, which are necessary to produce the quality product that
the market demands.
The printing and packaging industry began in the era of protection and licensing measures. In
1985, the printing sub-sector was brought under the Trinidad and Tobago Institute of Printing and
Publishing sponsored by United Nations Conference on Trade and Development (UNCTAD) and
Government of Trinidad & Tobago. The objective was to put in place a developmental policy to
address this fragmented sector. The institute currently conducts training courses in various
disciplines.
Investment Opportunities
• Packaging (Containers) and labels
• Flexible packaging -laminates, foils
• Commercial printing-continuous business forms, magazines
• Graphics and niche paper grades
• Electronic publishing
3 .7 .4
Chemicals , Pharmaceuticals and Plas tics
Petrochemicals used as inputs for the production of other chemicals e.g. ethylene, benzene
propylene. These chemicals are little produced in Trinidad;
A joint effort is being made to expand the Plastics, Printing and Packaging Sector. A PPP Task
Force has been established to facilitate growth and promotion of an integrated sector. In the short
term, this would involve the construction of various resin terminals to provide lower prices for
imported resins. In the longer term, the proposed ethylene cracker / polyethylene complex will
provide sufficient resin for any expansion of specific polyethylene industries. Other plastic
industries targeted for development and investment opportunities include polycarbonates, nylon
and HDPE.
Investment Opportunities
• Pharmaceuticals -prescription drugs, OTC or self-medication products, veterinary products
• Perfumes and toiletries
• Specialty chemicals e.g. intermediate inputs for paints and cosmetics
• Downstream petrochemicals e.g. hydrogen peroxide, petrolatum
• Fertilisers
• Plastics for the packaging, building, automotive and electrical industries
.
3 .7 .5
Marine Indus tries
Yacht-Service and Yacht-Tourism industries in Trinidad and Tobago have registered significant
growth since 1990. In 1990, the annual arrival of yachts to this country was 637. By the end of
1997, yacht traffic had increased to 2,590 and in 1998, yacht traffic was 2,894, 2000 the figure
reached 3249. Drops were recorded in 2001-2002 – 2,735-2301
Boaters of all types, have been gradually discovering the benefits of visiting Trinidad and Tobago,
both for pleasure and business reasons. The results for the country have been a marked increase
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both in business and jobs. In the case of the latter, it is now estimated (as of December 2002) that
1475 people are now employed in the Yacht-Service industry alone.
Trinidad offers a number of advantages over other Caribbean islands for the yachting industry.
These include:
•
•
•
•
•
•
Located south of the 120 parallel, outside the active hurricane belt. Resulting in reasonable
insurance premiums throughout the year, significantly lower than other Caribbean
locations.
A large pool of highly skilled labour for out-haul, repair and maintenance services.
Ready availability of high quality teak, ideally suited for outfitting pleasure craft.
Duty-free concession for importation of yacht in-transit parts and goods.
Excellent support services to cater to the needs of the yacht visitor, available in one
location. Ninety percent of the services that a yachting visitor may require can be found in
Chaguaramas
Facilities’ capabilities of up to 200 ton-lifts.
Investment Opportunities
Ship's chandlery
Boat servicing, storage and building
Commercial Ship Repairs:
⇒ Supply and operation of a 450 metric tonne capacity dry dock.
Marine Infrastructure:
⇒ Marina construction on the Gulf Coast and areas of Tobago;
⇒ Construction of sea walls, boardwalks, jetties and piers.
Upgrading of piling hammers and other heavy duty Marine Construction Machinery.
Yacht Service:
⇒ Supply of Hot Dip galvanising equipment.
⇒ Supply of large marine hoists (up to 500 tonnes) including upgrading of welding
equipment, sandblasting equipment and gel-coat stripper.
⇒ Eco-friendly products and technology.
Boat Construction:
⇒ Supply of custom-made machinery to mould small fibre glass parts for mass export
particularly to the US market. Trinidad & Tobago has a logistical advantage
compared with Far East suppliers.
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The Yacht Services Association of Trinidad and Tobago (YSATT) is a non-profit
organisation established since 1994 by the boat yards and marinas within the Western
Peninsular of Trinidad. YSATT is dedicated to the continued growth and well being of
the industry, as well as promoting the interests of the yacht service industry, enhancing
facilities, advancing the education of those engaged in the yacht service industry and
improving industry conditions. For more information, please contact:
Yacht Services Association of Trinidad and Tobago
P. O. Box 3168
Carenage
Trinidad, West Indies
TEL: - 1-868-634-4938
FAX: - 1-868-634-2160
E-Mail: - ysatt@trinidad.net
.
3 .7 .6
Touris m♣
Trinidad and Tobago is situated at the crossroads of North and South America and Europe. The
island nation has proven to be a natural harbour for a multiplicity of persons – a richness of races –
which has served to create one of the most cosmopolitan societies in the world. That characteristic,
more than any other, gives Trinidad and Tobago the potential to become world class tourism
destination – a destination where people, places and activities inspire the imagination and fuel the
desire for the exploration of new things experiences and ideas that enrich the human life. It has
been said that Trinidad is the “un-Caribbean Caribbean”. The destination is vibrant and urban yet
cool and serene and possesses an amazing wealth of natural resources. Trinidad’s rich natural
resource base is the key to the country’s diversified economy. State of the art communications and
technologies are rapidly being implemented to keep the island at the cutting edge of the global
development. These attributes, coupled with good infrastructure and a highly literate labour force,
provide a solid foundation upon which a thriving Tourism industry may be fashioned.
Trinidad and Tobago is well located, meeting industry’s six hour criterion for short-haul travel and
with successful penetration already into the long-haul travel market of Europe. This is a
tremendous complement to the long-established and profitable North American market. The
country is also located next to a market in South America, which is expected to produce substantial
travel as their economies prosper. The country’s product is well matched to emerging market
trends and offers substantially more diversity than most Caribbean destinations: resort
experiences; eco-tourism, business travel and meetings, and cultural and event tourism. All hold
high potential for the country’s tourism product. In addition, specialty markets already have
established niches demonstrating competitiveness: diving in Tobago and yachting, the latter a real
success story with outstanding growth in the last decade.
Trinidad and Tobago has many strengths, which enable the country to successfully pursue the
new tourism. It has:
• Diversified economy;
• A relatively large population base;
• A thriving export sector;
• A cosmopolitan city with exciting cultural and entertainment activities;
• Sun, sea and sand resources in Tobago;
♣ So ur ce – Trin id a d a n d To b a g o To u rism Ma sterp la n
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•
•
Extensive natural areas and internationally significant eco-tourism resources;
A vibrant business and industrial sector.
Investment Opportunities
• Business Hotel and Conference Center (Port of Spain - Trinidad)
• Business Hotels (Trincity, Wallerfield, Woodbrook- Trinidad)
• Integrated Resort (Chupara Point - Trinidad)
• Coastal Resorts (Las Cuevas, Mayaro– Trinidad; Courland – Tobago)
• Business and Resort Hotel(Guayaguayare)
• Residential Resort (Rockly Bay - Tobago)
• 2 Resort Hotels (Bacolet - Tobago)
• Integrated Resorts (Bon Accord, Buccoo - Tobago)
• Integrated Eco-Tourism Community(Englishman’s Bay – Tobago)
• 2 Marinas (Tobago & Trinidad)
Cruise Shipping and Home Porting
In seeking to expand this sector, several opportunities for investment have been identified:
⇒
⇒
⇒
⇒
⇒
water front development to provide cruise terminal linkage to urban amenities,
development of local cultural/historic/ecological attractions,
facilitation of duty-free shopping,
technical assistance for exploring further potential in the home porting business,
technical assistance for the upgrading of cruise terminal facilities.
3 .7 .7
Film and Entertainment S ector
The critical goal for the film and entertainment sector is the positioning of Trinidad and Tobago as
a unique Caribbean location for the production and promotion of film and entertainment products.
The Film and Entertainment Unit of TIDCO invites investment in the sector for the production of
film and television products. To this end a 5 year Film Master Plan has been drafted. The Plan
addresses issues of legislation, infrastructure and product development and provides a framework
for the granting of fiscal and other incentives to potential investors. An Entertainment Master Plan
for the development of the music industry is also being drafted.
Investors may be attracted to the following areas:
⇒
⇒ Promotion of live performers and entertainers
⇒ International marketing of Trinidad and Tobago music: calypso, steelband, soca, among
others, including possible joint ventures with local recording studios,
⇒ Video production of Caribbean music,
⇒ Establishment of theme parks,
⇒ Venues/facilities for the performing arts, and/or
⇒ Training centres,
⇒ Entertainment Complex,
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3 .7 .8
Information Communication Technolog y / Electronics
A survey conducted in Trinidad and Tobago and reported in March 2002 by TIDCO identified
approximately 350 companies in this sector, employing approximately 2,000. The sectors in which
the firms were situated were IT/Telecom Services (31%), financial Services (16%) the public Service
(19%), oil/energy-based industries(9%) manufacturing (9%) and others (19%)
Investment Opportunities
• Computers and office equipment
• Electronic components
• Telecommunications equipment and services
• Consumer electronics
• Electrical machinery and apparatus
• Data processing
• Software development, networking systems, data base management, internet developmentcommerce applications
• Multimedia
• Telemarketing/ teleservicing, call centres and shared services.
Investment Opportunities in Tobago
The Tobago House of Assembly has identified the following business areas in which joint
venture/foreign interest will be encouraged, the proposed sum of investment should be no less
than US $500,000 in total assets:
⇒
⇒
⇒
⇒
⇒
3 .8 .
Tertiary educational facilities
Recycling technology,
Information technology,
Boat building and deep-sea fishing.
Telemarketing,
S upport S ervices
3 .8 .1 .
Network of S upport S ervices
Trinidad and Tobago has an existing network of agencies both in the private and public
sector that provide business support services to investors and all businessmen. Support
services include the provision of market, economic and trade information, testing and
calibration services, support in project development and financing, export promotion, and
investment facilitation. Some key agencies include:
Investment Facilitation
§
§
The Tourism and Industrial Development Company of Trinidad and Tobago (TIDCO);
the Business Development Company Limited (BDC) for information, advice and loan
guarantee plan.
Trinidad and Tobago Chamber of Industry and Commerce, North and South
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Chapters; American Chamber of Commerce of Trinidad and Tobago; Trinidad and
Tobago Manufacturers Association (TTMA) and the Couva Point Lisas Chamber of
Commerce.
Information Services
§
Central Statistical Office (CSO); the Central Bank of Trinidad and Tobago Research
Department for business and economic information; Trade Division- TIDCO for trade
information.
Technical Support
§
Trinidad and Tobago Bureau of Standards (TTBS) and Caribbean Industrial Research
Institute (CARIRI), for engineering support.
Financial Services
§
Trinidad and Tobago Export Credit Insurance Co. Ltd. (EXCICO) for export credit
insurance and export financing; Development Finance Limited for corporate finance,
risk capital and strategic management advisory services.
3 .8 .2 .
TIDCO
The Tourism and Industrial Development Company of Trinidad and Tobago Ltd. (TIDCO),
was established by an Act of Parliament in May 1995 as the national promotional agency
of Trinidad and Tobago. TIDCO’s mandate is to assist in the development of a diversified
Trinidad and Tobago economy, through the functioning of an efficient and effective
single state agency. In effect its mission is to market and promote “Brand TnT”.
The Trade and Investment Unit of TIDCO promotes Trinidad and Tobago as a highly
desirable location for investment especially in export competitive industries in the non-oil
and non-energy sectors of the economy. These sectors include: Agri-Business, Banking
and Financial Services, Entertainment, Information Processing, Light Manufacturing and
Marine Services. The Unit also promotes and facilitates the export activities of the local
manufacturers and producers. It provides trade information on the criteria, rules and
regulations for entering foreign markets as well as conducting sectoral studies. Included
in the work programme is the analysis of the trade agreements, the formalities of the export
process and their cumulative effect on Trinidad and Tobago’s export sector. This Unit is
also involved in trade negotiations and the creation of an infrastructure for market
development.
The Certification Department of TIDCO is the certifying body for the various trade
agreements to which Trinidad and Tobago is a signatory, namely CARICOM,
CARIBCAN, CARICOM/Venezuela and CARICOM/Colombia, Trinidad and
Tobago/Venezuela. Exporters require this certification for receiving the concessions under
these trade agreements. This Department also assists in the administration of export
incentives and is involved in the registration of exporters.
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The Tourism Unit facilitates the development of the Tourism industry. Its functions are
to market and manage Trinidad and Tobago as an International Tourism Destination. The
Division encourages private sector participation to ensure the sustainable development of
the sector, thereby optimising Tourism’s contribution to the economy of Trinidad and
Tobago.
3 .9 .
Environmental Is s ues
Trinidad and Tobago has a rich and unique terrestrial and marine biodiversity. The islands are
endowed with an abundance of marine and coastal resources and a wide variety of flora and fauna.
Like small island countries, the natural resource base of Trinidad and Tobago is fragile; this allows
less room for error in its utilization and management.
Environmental functions are administered by various governmental and non-governmental
organizations. Specifically, the Institute of Marine Affairs addresses environmental concerns.
Non-marine related concerns are largely addressed by the Ministry of Integrated Planning and
Development.
In March 1995, The Environmental Management Authority was established by an Act of
Parliament. The main functions of this organization are:
§
§
§
§
To formulate a National Environmental Policy and specific sectoral policies,
To establish environmental standards and criteria,
To monitor compliance with these standards, and
To coordinate the activities of the Government and Non-Government Organizations with
environmental functions.
In the international arena, Trinidad and Tobago has participated in numerous fora and has made
significant contributions to global policy in many areas related to the environment.
§
§
§
§
§
Trinidad and Tobago was an active participant in the United Nations Conference on the
Human Environment held in Stockholm in 1972.
It was a member of the implementation committee of the Montreal Protocol.
It was instrumental in the establishment of the Alliance of Small Island States (AOSIS), a
group established to bring the perspective of small island states to the international
community in relation to the effects of climate change.
It participated in the signing of the final act of the Protocol concerning Specially Protected
Areas and Wild Life in the wider Caribbean Area.
It participated in the 1992 Earth Summit.
Trinidad and Tobago is very aware that the environment is integral to the overall process of
development. Depending on the project, investors are required to complete Environmental Impact
Assessments for Industrial and Tourism Development activities. This is necessary to identify
measures and interpret the significance of the impact of the implementation of these projects on the
environment.
In 2001 a green fund levy (0.10% of gross receipts) was introduced to enable grants to be made to
community groups and organisations primarily engaged in activities related to the remediation,
reforestation and conservation of the environment
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Guide To Investing In Trinidad & Tobago
IV Th e Fin a n cia l S ystem
IV.
THE FINANCIAL S YS TEM
Trinidad and Tobago has a well-developed financial system comprising:
•
•
•
•
•
•
•
•
•
•
Commercial Banks
Credit Unions
Development Finance Institutions
Life and General Insurance Companies
Mortgage Finance Companies
Other Non-Bank Financial Institutions
The Stock Exchange
Trust and Pension Fund Managers
Unit Trusts and Mutual Funds
Venture Capital Companies
Key legislation governing the above institutions in Trinidad and Tobago are the Central Bank Act, the
Financial Institutions Act, Financial Institutions (Non-Banking) Act, the Insurance Act, the Money
Lender’s Act, the Trustee Ordinance, the Co-operative Societies Act, the Securities Industry Act, the
Companies Act and the Venture Capital Act.
In 2003 a proposal was made to introduce legislation that would integrate the supervision of insurance
companies and pension funds with that of the banking system under the authority of the Central Bank. A
move intended to help us deal more effectively with the reality of Universal banking.
The financial system in Trinidad and Tobago is dominated by commercial banks with an extensive network
of 123 branches. In the last decade there has been considerable growth in the use of ATM’s for the
provision of banking services, currently there are 2544 ATM’s in operation (average of 1 ATM per 5,000
persons). Recently banks have also been providing telephone and Internet banking services.
4 .1 .
Interes t Rates
Table 4.1.1 Commercial Banks Interest Rates (At June 2002, Local Currency)
Percentage per Annum
LOANS
Commercial Banks
Basic Prime Rate
Term
Demand
Overdraft
Trust and Mortgage
Finance Companies
Residential
Commercial
DEPOSITS
Commercial Banks
Ordinary Savings
Special Savings
Term Deposits
3 months
3- 6 months
6 – 12 Months
%
12.00
13.63
12.50
13.00
13.00
13.00
2.25
3.13
3.38
3.63
4.25
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Guide To Investing In Trinidad & Tobago
IV Th e Fin a n cia l S ystem
Trust and Mortgage
Finance Company
1-3 year deposits
9.8
Source: Review of the Economy 2002
Table 4.1.2 Interest Rates
(Foreign Currency)
LOANS
Commercial Banks
Weighted average rate on foreign
currency loans
Weighted average rate on foreign
currency deposits
Source: Economic Bulletin, Central Bank of Trinidad and Tobago, August 2002
4 .2 .
%
10.40
5.55
Foreig n Currency Accounts
There are no foreign exchange controls in force in Trinidad and Tobago. Individuals and
companies can hold foreign currency deposit and chequing accounts in Trinidad and Tobago, and
financial institutions are now allowed to give foreign currency loans. Interest rates vary according
to the currency and institution.
4 .3 .
Acces s to Long -Term Finance
Long-term financing is available through mortgage companies, trust companies, merchant banks,
the Development Finance Limited and the Agricultural Development Bank, and through the issue
of bonds.
4 .4 .
Venture Capital Incentive Prog ramme
In January 2001 the VCIP launched its Venture Capital Focus magazine, designed to provide news,
information and insights to industry practitioners, entrepreneurs, business and financial advisors
and policy makers. The Venture Capital Incentive Programme (VCIP) is a Government initiative
aimed at mobilising equity financing for small and medium sized enterprises in the non-traditional
sectors of the economy. The Venture Capital Act 1994 and the Venture Capital Regulations of 1996
govern the Programme, which was officially launched on October 1996. The cornerstone of the
VCIP is an incentive in the form of a tax credit of 30% of the amount invested by each investor in a
Venture Capital Company. Investors may be either individuals or corporations.
A Venture Capital Company or “VCC” must be a newly registered company, with the words
“venture capital” in its name. The VCC is formed specifically for the purpose of making equity
investments in qualifying investee companies or “QICs”. Individuals and companies interested in
establishing a VCC must become incorporated under the Companies Act and have at least $50,000
in paid up equity capital and an authorized capital of not less than $5 million and not more than $20
million. The VCC must also raise at least $500,000 in paid up capital and begin making equity
investments within 12 months of its registration. By the end of its second year, the VCC must have
invested at least 80% of its equity in one or more QICs.
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IV Th e Fin a n cia l S ystem
Once the VCC has been registered, the Office of the Administrator will issue tax certificates to each
shareholder, within 45 days. These tax credits will amount to the highest marginal tax rate
prevailing at the time of the investment in the VCC, currently 30%. Tax credits must be applied to
taxes payable in the immediate year of income, however, in the event that the tax credits granted are
in excess of the outstanding tax liability, then the additional tax credits may be carried forward and
set-off against tax assessed for succeeding years of income.
A company desirous of becoming a QIC must regis ter with the VCIP and meet certain basic criteria
as set out in the Act. A QIC may be either a start up or existing company and must be incorporated
under the Companies Act 1995 or be designated a CARICOM Enterprise under the CARICOM
Enterprises Act. The potential QIC must also have fully paid-up capital of less than $3 million and
employ no more than 75 employees. Funds received by a QIC from a VCC may be used for both
capital expenditure and working capital. However, such funds cannot be used for lending,
purchasing securities, acquiring land, entering into non-arms length transactions or for
investments outside of Trinidad and Tobago except where the investment is directly in support of
the activities of the QIC.
A VCC is expected to hold investment it makes with a QIC for a period of at least five years but for
no more than 10 years. Exit mechanisms available to the VCC include:
•
•
•
Sale of shares back to the business owner
Sale of shares to third parties
Initial Public Offering
At present, there are three venture capital firms operating under the purview of the VCIP. These
firms have provided investment capital to eight investee firms between 1998 to 2002 operating in
tourism, media, marketing, entertainment and manufacturing. It is widely believed that venture
capital funds should produce above average returns, given the high risk associated with the
investment. However, since the investment under the VCIP began only in 1998 and given the fiveyear minimum investment period, it is still to early to say whether VCC’s will achieve a return on
investment commensurate with the risk inherent in their investments
For more information contact:
The Office of the Administrator
Venture Capital Incentive Programme
23 Chacon Street
Port of Spain
TRINIDAD
TEL: 1 868-624-3068
FAX: 1-868-624-5693
4 .5
The Capital Mark et - Bonds , Mutual Funds and S tock Mark et
4 .5 .1 .
Bonds
In Trinidad and Tobago, bonds have been used very successfully to raise funds by the
Central Government, state owned enterprises and some of the larger, private companies,
both in the local market as well as in foreign markets. In general, bonds issued on the
local market are administered through private placement with a merchant bank or trust
company. The experience in Trinidad and Tobago has been one in which bonds have
been fully subscribed and quite often, over subscribed.
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IV Th e Fin a n cia l S ystem
Secondary market bond activity decreased for the period under review. Stock Exchange
information indicates that bond market turnover was limited for the period ending June
2002, with a total of two Trinidad and Tobago dollar transactions valued at $613.5
thousand. There were nine United States dollar transactions, with traded market value of
US$5 million, 32% less than its nominal value.
4 .5 .2 .
Mutual Funds
At the end of 2002, there were four major entrants into the local mutual funds market, the
Unit Trust Corporation (UTC) which was established in 1981, the Royal Bank of Trinidad
and Tobago Limited which established its fund, the Roytrin Mutual Income and Growth
Fund in March 1994, First Citizens Bank and the Republic Bank Limited which established
its fund, the Republic Global Equity Fund, in July 1995. There are also institutions in
Trinidad and Tobago that allow for participation in mutual funds invested abroad. The
Praetorian Property Mutual Fund, which operates similar to a Real Estate Investment Trust
(REIT) in the United States was launched in December 2002.
The Trinidad and Tobago Unit Trust Corporation was established by an Act of Parliament
in 1981. It is regulated by the Unit Trust Corporation of Trinidad and Tobago Act 83:03.
It is planned to restructure the Trinidad and Tobago Unit Trust Corporation into a public
liability company by passing in Parliament the Trinidad and Tobago Unit Trust
Corporation (Vesting) Bill 2002. This will allow for an initial public offering by the newly
restructured Unit Trust Corporation. Other institutions licensed to conduct the business
of a mutual fund nature, at present operate under the Financial Institutions Act. It is
expected that new legislation to regulate the mutual fund market will be developed.
Among the four Institutions operating in Trinidad and Tobago, there are Balanced
(Growth and Income) Funds, Money Market Funds and Capital Appreciation Funds. A
series of investment plans have also been structured to facilitate participation in the
funds. These funds are invested in company and debt securities, certificates of deposits
and mortgages and are invested both locally and overseas.
Profits accruing to a Trust operated by a Financial Institution, licensed under the Financial
Institutions Act, in respect of its unit trust business are exempt from corporation tax.
4 .5 .3 .
S tock Mark et
At December 31, 2002, there were 30 companies being traded on the stock market in
Trinidad and Tobago, with a total market capitalisation of TT$48,099.25 million
(approximately US$7,634.80 million). The total volume of shares traded was 97.49 million
with a total value of TT$1,070,43 million (approximately US$169.91.million).
In 2002 the stock market had a 21.41% decrease in volume from 2001’s traded volume of
124.05 million shares. The market’s value however increased by 1.14 %over the previous
year’s value of TT$1,058.33 million
The Trinidad and Tobago Stock Exchange indices and volumes include five companies
also listed in Jamaica and Barbados with their primary operations in those countries.
The Stock Exchanges of Trinidad and Tobago, Jamaica, Barbados, Dominican Republic
and the Bahamas have entered into an agreement for the harmonization of the regional
capital markets. The project, funded by the Inter-American Development Bank, will
examine and seek to improve the regulation, trading and clearance and settlement
procedures in the region.
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Guide To Investing In Trinidad & Tobago
IV Th e Fin a n cia l S ystem
The domestic scene at the beginning of 2003 is much more certain than the corresponding
period in 2002. For 2003 we believe the market would increase, albeit not as strongly as in
2002. That is so because stock market prices have already factored in some of the
positives to be delivered from the expanding economy as well as the reduction in tax rates
which took effect in 2003.
For more information contact:
The Trinidad & Tobago Stock Exchange Limited
1 Ajax Street
Wrightson Road
Port of Spain
TRINIDAD
TEL: 1 868-625-5107/9
FAX: 1-868-623-0089
E-Mail: ttstockx@tstt.net.tt
Website: http://Stockex.co.tt
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Guide To Investing In Trinidad & Tobago
V. Po litica l S ystem
V.
POLITICAL S YS TEM
Trinidad and Tobago is an independent Republic that has inherited and preserves the British tradition of
parliamentary democracy upon which the constitution is based.
5 .1 .
Parliament, Hous e of Repres entatives and the S enate
Following the Westminster model, Trinidad and Tobago is governed by a parliament consisting of
2 houses.
The lower house or House of Representatives is made up of the elected representatives of the 36
electoral constituencies and the Speaker of the House. General elections are held at least every five
years. The upper house or Senate is comprised of 31 appointed members, which include
independent members appointed by the President.
There are 3 major parties in Trinidad and Tobago: The United National Congress (UNC), the
National Alliance for Reconstruction (NAR) and the People’s National Movement (PNM). The
PNM currently forms the ruling group and the UNC is the Opposition.
Tobago has a House of Assembly which deals with matters relating to the administration of the
island of Tobago and implements policies relating to the island, that are referred by Parliament.
5 .2 .
Role of the Pres ident and the Prime Minis ter
The President is elected for a five-year renewable term by the Electoral College, which consists of
all members of the House of Representatives and the Senate. The President of the Republic, His
Excellency, George Maxwell Phillips, was sworn into office in March 2003.
The Prime Minister has traditionally been the leader of the ruling party, elected by party members.
The Prime Minister of the country is Mr. Patrick Manning, leader of the PNM party.
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VI. La b o u r
VI.
LABOUR
6 .1 .
Labour Force
Human Resource Base
Trinidad and Tobago has a well-developed human resource base. Education has been a prime
focus of the development strategy since its independence. The work force in Trinidad and Tobago
is characterized by a high percentage of university graduates including those with postgraduate
qualifications.
Legal, administrative, information technology and general management skills are widely available,
as well as scientific, technical and engineering skills specific to industries such as agricultural,
construction, petroleum and petrochemicals.
Table 6.1.1
Students Enrolled in Government and Assisted Schools
Students Enrolled in
1998/99
1999/00
2000/01 p
Government and
Assisted Schools:
Primary
169,540
163,206
147,878
Government Secondary
18,244
17,811
23,341
Assisted Secondary
20,860
21,074
22,251
Junior Secondary
33,126
33,063
32,174
Senior Comprehensive
25,363
24,918
24,652
Composite Schools
8,401
8,676
9,363
Technical And Vocational
4,111
3,923
3,849
University of The West Indies
(St. Augustine T&T Students)*
5,609
6,818
6,924
Source: Central Statistical Office
*Students Registration in First Degree and Higher Degrees (Full Time and Part-Time)
p- Provisional
It should be noted that there are a large number of nationals attending Universities outside of
Trinidad and Tobago, but no official statistics exist on the number. Apart from the other campuses
of the University of the West Indies, in Barbados, Jamaica and the Bahamas, popular destinations
for study include the United States, Canada, and the United Kingdom.
Labour Force
During the period October 2001 to March 2002 the number of persons in the labour force increased
by 0.9% from 580,700 to 585,800.
Notwithstanding the marginal increase in the labour force, there was significant reallocation of the
labour force between the various sectors. Increases in the labour force were recorded in the
following sectors: Electricity and Water (14.1%), Real Estate and Business Services (12.2%), Sugar
(22.9%), Other Manufacturing (3.3%) and Construction (5.7%). These increases were mitigated by
decreases in Agriculture, Forestry, Hunting, Fishing and Community (3.4%) Restaurants and
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Guide To Investing In Trinidad & Tobago
VI. La b o u r
Hotels (6.5%) and other Mining and Quarrying (7.1%), Social and Personal Services (2.1%).
Table 6.1.2
Labour Force Statistics
(Thousands)
Population
1999
2000
(third
quarter
1,285.7
1,262.4
Population
estimates)
Non-Institutional Population
15 Years and Over
Labour Force
Persons With Jobs
Persons Without Jobs
Participation Rate (%)3
Unemployment Rate (%)
2001
1,266.8
2002
1,275.7
926.0
936.6
947.3
961.0
563.4
489.4
74.0
60.8
13.1
572.9
503.3
69.6
61.2
12.2
572.3
512.2
60.1
60.4
10.5
584.1
523.6
60.5
60.8
10.3
Source: Central Statistical Office
1. Labour force as a percentage of non-institutional population 15 years and over.
2. Persons without jobs as a percentage of the labour force.
6 .2 .
Minimum Wag es
Minimum wages legislation is specified in the Minimum Wages Act, Chapter 88:04:No. 2.
The national minimum wage for workers in Trinidad and Tobago is eight dollars per hour effective
February 2003. There are also minimum wages orders for the following:
•
•
•
•
•
Catering Industry
Shop Assistants
Household Assistants
Gas Station Assistants
Security Industry Employees
6 .2 .1 .
Normal Work ing Hours
The normal working day for non-shift workers consists of 8 hours and a normal working
week, 40 hours. These are inclusive of a meal break and rest period. Beyond the normal
working day, a worker working continuously is entitled to a meal break and a rest period
for each additional four hours.
6 .2 .2
Overtime Remuneration
The Minimum Wages orders set out the rules for overtime remuneration which pertain to:
−
−
−
−
Time worked beyond eight hours (generally)
Time worked on days off
Time worked on Sundays
Time worked on public holidays.
Overtime remuneration is:
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VI. La b o u r
6 .3 .
•
-
On normal working days:
one and one-half times hourly pay for time normally worked in excess of 4 hours,
two times hourly pay for additional extra 4 hours of work and,
three times hourly rate thereafter.
•
-
On Sundays, days off and Public Holidays:
twice hourly pay for time worked the first eight hours and,
three times hourly pay for time worked in excess of 8 hours.
Retrenchment and S everance Benefits Act
The Retrenchment and Severance Benefits Act of 1985 lays down minimum severance pay which is
payable in the event of redundancy. Union agreements will usually provide for three (3) to four (4)
weeks severance for each year of service.
In the event of the winding up of the “employer company” or the appointment of a receiver,
severance benefits provided for under the act enjoy the same priority as wages or salaries under
the winding up provisions of the Companies Act.
6 .4
Holidays
There are fourteen (14) statutory holidays and two (2) unofficial ones for Carnival.
Table 6.5.1
Holidays
Name
New Year’s Day
Eid-ul-Fitr
Carnival Days
Spiritual Baptist
Liberation Shouter Day
Good Friday
Easter Monday
Indian Arrival Day
Labour Day
6 .5
Date
1st January
(As decreed)
Not Official
30th March
Name
Corpus Christi
Emancipation Day
Independence Day
Republic Day
Date
19th June
1st August
31st August
24th September
18 April
21 April
30th May
19th June
Divali
Christmas Day
Boxing Day
(As decreed)
25th December
26th December
Trade Unions
Employees may choose to join a union. The majority of workers including industrial, civil servants,
teachers, members of the police force and fire services are represented by trade unions. Via the
Industrial Relations Act, under which the Industrial Court is established, power is given to that
court to settle trade disputes, prevent inappropriate industrial action and register collective
agreements. Services deemed ‘essential’ such as electricity, water, health, fire, communications,
and sanitation are prohibited from undertaking industrial actions such as strikes and lockouts.
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6 .6
S ocial S ecurity
All employees between the ages of sixteen (16) and sixty (60) are covered by the National
Insurance System, on an earnings-based system of benefits and contributions. Contributions are
made, two-thirds by employer and one-third by employee. The employer is responsible for
submitting payment of the full amount to the National Insurance Board after deducting the
employees’ share from their wages. This contribution is also required of foreign employees.
Employees must also pay a health surcharge deducted by their employer on a weekly or monthly
basis, or if self-employed, must remit the health surcharge on a quarterly basis. (See Section 10.7.2)
6 .7
Occupational S afety and Health
New legislation governing occupational safety and health has been drafted and is at present, in the
form of a Bill. The new Act when proclaimed, will replace the Factories Ordinance, 1948 and the
Employment of Women Act.
6 .8
Labour Exchang e
The National Employment Service of the Manpower Unit of the Ministry of Labour, Manpower and
Industrial Relations screens, registers, interviews and counsels nationals seeking employment. A
skills bank of managerial, clerical, secretarial, technical, manipulative and unskilled categories of
workers, is maintained and supports the placement of individuals in companies requesting
assistance in recruiting staff. The service is provided free of charge.
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Guide To Investing In Trinidad & Tobago
VII. Esta b lish in g a Bu sin ess
VII.
ES TABLIS HING A BUS INES S
As of April 1997, companies in Trinidad and Tobago as well external companies that have established a
place of business in Trinidad and Tobago are governed by the Companies Act, 1995 (as amended by the
Companies Amendment Act, 1997). This Act is based on the Canadian Business Corporations Act.
Under the Companies Act, one or more persons may incorporate a local company. Companies have all the
rights and powers of a natural person. External companies are registered under specific prescribed
procedures under the Companies Act.
7 .1 .
Principal Forms of Bus ines s
The principal forms of business entities are:
⇒
⇒
⇒
⇒
⇒
Public and non-public limited liability profit companies
Non-profit companies
External companies
Partnerships
Sole proprietorships
7 .1 .1 .
Public and Non-Public Limited Liability Companies
The non-public limited liability company intended for profit is the most common form of
business.
Non-public companies are required to have at least two directors but a public company is
required to have no fewer than three directors, at least two of whom are not officers or
employees of the company or any of its affiliates.
Public companies are required to deliver a copy of their financial statements to the
Registrar not less than 21 days before each annual meeting of the shareholders. Public
companies are also required to have an audit committee unless they have been granted
authorisation by the appropriate office to dispense with an audit committee. The audit
committee is to be comprised of not less than three directors of the company, the majority
of whom should not be officers or employees of the company or any of its affiliates.
7 .1 .2 .
External Companies
External companies that establish a place of business in Trinidad and Tobago are required
to register within fourteen days of their establishment. An external company is registered
in Trinidad and Tobago by filing the following documents with the Registrar:
• Application for Registration of an External Company (Form 20)
• Affidavit or solemn declaration of an officer of the external company
• A notarially certified copy of the corporate documents of the company
• Statutory declaration of an attorney-at-law (Form 32)
• Power of attorney (Form 22).
The registration fee is TT$2,000 (approximately US$320) plus TT$40 (approximately
US$6.35) for each of the above five documents.
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VII. Esta b lish in g a Bu sin ess
7 .2 .
S hare Capital
Shares are issued without nominal or par value based on the principle that the shareholders are
entitled between them to the net assets of the company.
Companies may have different classes of shares. The distinction among classes of shares in terms
of rights, privileges, restrictions or conditions is to be stated in the Articles of Incorporation of the
company. At least one class of share must have each of the following basic rights of shareholders:
• the right to vote at general meetings
• the right to receive any dividend declared, and
• the right to receive the net assets on liquidation.
Companies must now establish a Stated Capital Account (SCA) for each class of shares or series of
shares. This account would represent what has been invested and what must remain in the
company. The SCA cannot be reduced if the company is insolvent, except in cases where it is
being reduced by an amount that is not represented by realisable assets.
7 .3 .
Procedures for Incorporating a Company in Trinidad and Tobag o
Incorporation of Companies falls under the authority of the Registrar General who reports to the
Attorney General and the Minister of Legal Affairs. The Registrar General is the Registrar of
Companies.
Incorporation of companies is administered by the:
Registrar of Companies,
72-74 South Quay,
Port of Spain,
TRINIDAD AND TOBAGO.
TEL: 1-868-625-9971
FAX: 1-868-625-6530.
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VII. Esta b lish in g a Bu sin ess
7 .3 .1 .
Reg is tration Fees
Under present legislation, all fees payable to the registry are paid in cash or certified
cheque.
7 .3 .2 .
Incorporation Procedures
The process of incorporation comprises the following three major steps:
STEP 1
APPLICATION FOR NAME SEARCH AND
NAME RESERVATION (FORM 25)
•
If approved, response is collected within 2
working weeks
STEP 2
FILING OF ARTICLES OF
INCORPORATION (FORM 1)
These are filed with:
•
Declaration of Compliance (FORM 31)
•
Notice of Directors (FORM 8)
•
Notice of Address of Registered Office
(FORM 4)
•
A Certificate of Incorporation is issued
within 2 working weeks of filing
documents
STEP 3
MAKING OF BY-LAWS
The By-Laws govern the conduct of the affairs of the company. There is no need to file
the document at the office of the Registrar of Companies.
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VII. Esta b lish in g a Bu sin ess
7 .3 .3 .
Name S earch / Name Res ervation
The process requires completing the compulsory, simple form (Form 25), “Application for
Name Search and Name Reservation.” This is submitted in duplicate with the prescribed
fees of TT$25.00 (approximately US$4.00) to the office of the Registrar. There are a
number of restrictions on what is considered a proper name of a company. These are
described in Section 493 of the Act.
7 .3 .4 .
Articles of Incorporation
Among the matters to be included in the Articles of Incorporation are:
• the approved name of company
• type of liability of its members
• class of shares
• restrictions if any, on share transfers or share ownership
• any variations of pre-emptive rights
• any restrictions on powers of directors
• minimum and maximum number of directors
• restrictions, if any, on the business of the company.
7 .3 .5 .
By- Laws
After the issue of a Certificate of Incorporation, directors meet to develop by-laws for the
company. The by-laws that can be amended or repealed by resolution, are made for the
regulation of the business or affairs of the company. By-laws, amendments or repeals
must be submitted to the shareholders following their making, amendment or repeal, for
confirmation.
7 .4 .
Other Requirements
7 .4 .1
Comparative Financial S tatements
Directors are required to present to shareholders at every annual meeting of shareholders,
the:
• comparative financial statements of the preceding financial year
• the report of the auditor; if any, and
• any further information regarding the financial position of the company
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VII. Esta b lish in g a Bu sin ess
7 .4 .2 .
Corporate Records
Companies are required to keep at its registered office, Articles of Incorporation and bylaws, any unanimous shareholder agreement, minutes of meetings and resolutions of
shareholders and notices of changes in directors. Companies are also required to prepare
and maintain a register of members, directors, secretaries, director’s holdings, (for public
companies) and debentures, if any.
There are also certain statutory filing requirements, including an Annual Return and
changes in:
- Directors
- Secretary
- Registered Office
7 .5 .
Manag ement
Directors of a company may direct the management of the business and affairs of the company or
do so through its employees.
Powers of directors may be restricted in the Articles of
Incorporation or through the by-laws. Directors of a company who vote for or consent to certain
resolutions contrary to the Act and which involve monetary distributions may be liable to restore
to the company any amounts so distributed or paid and not otherwise recovered by the company.
Reference is made specifically to directors’ possible liability in respect to:
i.
ii.
iii.
iv.
v.
7 .6 .
issue of a share other than for money;
purchase, redemption or other acquisition of shares;
payment of dividend;
financial assistance;
payment of an indemnity.
Audit Requirement
All companies incorporated under local law are required to appoint auditors every year unless all
shareholders at the general meeting agree not to do so.
Auditors are required by the Companies Act to examine the financial statements and report to the
shareholders.
Audit firms may also provide tax and consultancy services in Trinidad and Tobago.
Public companies are also required to have an audit committee unless they have been granted
authorisation to dispense with an audit committee. The audit committee is to be comprised of not
less than three directors of the company, the majority of whom should not be officers or employees
of the company or any of its affiliates.
7 .7 .
Dividends
The Companies Act states that a company may pay a dividend in money, in property, or by issuing
fully paid shares of the company.
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The company cannot pay a dividend in money or in property out of unrealized profits.
The Act also states that a dividend cannot be declared or paid if there are reasonable grounds for
believing that:
a)
the company is unable, or would, after the payment, be unable to pay its liabilities as they
become due; or
b) the realizable value of the company’s assets would be less than the aggregate of its liabilities
and stated capital of all classes.
7 .8 .
Accounting Principles
The financial statements must be prepared in accordance with International Accounting Standards.
7 .9 .
Reg is tering for Value Added Tax (VAT)
VAT is essentially a consumption tax that was introduced in Trinidad and Tobago on January 1,
1990, at a standard rate of 15%. VAT Administration falls within the responsibility of the Board of
Inland Revenue -VAT Administration Centre. Collection of VAT on imports is the responsibility
of the Customs and Excise Division of the Ministry of Finance.
Under the Value Added Tax Act, 1989, most businesses are required to:
⇒ Register with the VAT Administration Centre of the Board of Inland Revenue
⇒ Collect Tax at 15% on nearly all the goods and prescribed services they supply, unless
zero-rated or exempt
⇒ File a VAT Return and remit the net VAT collected to the VAT Administration Centre,
usually every 2 months on or before the 25th day of the month following the
collection/return period.
Who Registers?
Any sole proprietor, company, partnership, joint venture and other unincorporated body who
conducts a business activity and, who makes commercial supplies within Trinidad and Tobago
with a gross value in excess of $200,000 in any 12 month period is required to apply for
registration for VAT.
Under certain circumstances a supplier who is not resident in Trinidad and Tobago has the option
to decide whether the supply of goods and services is made in Trinidad and Tobago. If the supply
is made within Trinidad and Tobago the supplier could apply to register for VAT. This would be
advantageous since it would allow the non-resident to claim the applicable input VAT paid on
goods and services received in Trinidad and Tobago. It is important also for the resident that
receives the goods or services, since the resident will be allowed to claim for the input VAT paid to
the non-resident.
Some items are either exempt or zero-rated from VAT.
Activities that are exempt include:
⇒ Medical, dental, hospital, optical and paramedical services other than veterinary services
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(see below)
⇒ Training and education in a public school or a private school registered under the
Education Act
⇒ Certain bus and taxi services
⇒ Financial Services
⇒ Real estate brokerage
⇒ Public postal services
⇒ Rental of residential property
⇒ Betting, gambling and lotteries
⇒ Services provided by non-resident person to an approved free zone company carrying on
an approved activity in a free zone.
Zero-rated supplies or services include:
⇒ Basic foodstuff (cheddar cheese, corned beef, curry, fresh butter, macaroni, peanut butter,
salt, salted butter, sardines, smoked herring, toilet paper, yeast, baking powder, rice, flour,
bread, milk, unprocessed foods)
⇒ Prescription drugs
⇒ Exports
⇒ Books
⇒ Agricultural equipment and animal feeds.
⇒ Repairs to yachts, aeroplanes and ships
⇒ International freight and ancillary charges
⇒ Domestic travel between Trinidad and Tobago
⇒ Range of healthcare items such as artificial joints, limbs and hearing aids
⇒ Computer hardware, software and accessories
⇒ Goods supplied to an approved free zone destination
⇒ Veterinary services.
How to Register for VAT
The application forms (VAT 1 and VAT 2) supplied by the VAT Administration Centre have to be
completed. VAT 1 requests the Board of Inland Revenue (B.I.R.) number as well as information
related to the commercial supplies of the business. VAT 2 requests names, addresses and
signatures of the directors, partners or members. Accompanying documents are as follows:
Original Certificate of Incorporation or Original Certificate of Registration; all
Original Incorporation and related Documents e.g. List of Directors.
The VAT Administration Centre also requests a cash flow projection for a period of 12 months,
which must be signed by a director and will also want to ascertain the date of commencement of the
business and requires proof (e.g. invoices, contracts) that business has actually commenced.
Upon registering, a Certificate of Registration is issued. The certificate must be displayed in public
view at the place of business. The certificate bears a registration number that must be stated on all
VAT invoices issued.
7 .1 0 .
National Ins urance, Income Tax and Health S urcharg e
National Insurance
Under the National Insurance Act, Chapter 32:01, all employers and their employees, with a few
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exceptions3 , must register with the National Insurance Board. To register as an employer, an
Employer Registration Form (N.I. 1) must be completed in triplicate. After the application for
registration is received, the company’s premises will be visited by an Authorised Officer of the
Board, who would need to check the business records. When this investigation is complete, a
National Insurance Certificate of Registration (N.I. 2 or 2A), will be issued containing the
employer’s registration number.
Having registered the company, applications must be made to the Local District Office for
registration of all employed persons and unpaid apprentices working for the company. Anyone
who is employed and earns more than TT$-80.00 per week must be registered. Exemptions include
a non-citizen who is exempt from Social Security Legalisation by virtue of International
Conventions governing Diplomatic and Consular Relations, and anyone employed by an
international or regional organization of which Trinidad and Tobago is a member and who is
covered by a Social Security System operated by that organization.
Where the employer is a company, every employee must be registered, including one who may also
be a major shareholder. Employers are required by Law to pay contributions on behalf of all
employed persons and unpaid apprentices. An employee pays one-third and the employer pays
two-thirds of each contribution, except in a few special cases. The company’s share of the
contribution is considered an operating expense and is tax deductible in its entirety. The employee
claims 70% of his share of the contributions as a tax relief.
Effective May 3, 1999 there were significant restructuring of the National Insurance Contribution
bands.
National Insurance – Table of Contribution Payments
Weekly
Earnings
Monthly
Earnings
Employee’s
Contribution
Employer’s
Contribution
Total
Weekly
Class Z
Weekly
I
$80.00 - $129.99
$347.00 - $562.99
$2.93
$5.86
$8.79
$0.60
II
$130.00 $179.99
$563.00 - $779.99
$4.33
$8.66
$12.99
$0.88
III
$180.00 $229.99
$780.00 - $996.99
$5.75
$11.50
$17.25
$1.17
IV
$230.00 $289.99
$997.00 - $1256.99
$7.28
$14.56
$21.84
$1.48
V
$290.00 $359.99
$1257.00 - $1559.99
$9.10
$18.20
$27.30
$1.85
VI
$360.00 $429.99
$1560.00 - $1862.99
$11.07
$22.14
$33.21
$2.25
VII
$430.00 $499.99
$1863.00 - $2166.99
$13.02
$26.04
$39.06
$2.65
Earnings
Class
3 Ex cep t io n s ar e t h o se wh o em p lo y o n ly do m est ic o r casual agr icult ur al wo r k er s o r bo t h .
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Weekly
Earnings
Monthly
Earnings
Employee’s
Contribution
Employer’s
Contribution
Total
Weekly
Class Z
Weekly
VIII
$500.00 $569.99
$2167.00 - $2469.99
$14.98
$29.96
$44.94
$3.05
IX
$570.00 $649.99
$2470.00 - $2816.99
$17.08
$34.16
$51.24
$3.48
X
$650.00 $729.99
$2817.00 - $3162.99
$19.32
$38.64
$57.96
$3.93
XI
$730.00 $809.99
$3163.00 - $3509.99
$21.57
$43.14
$64.71
$4.39
XII
$810.00 & OVER
$3510.00 & OVER
$22.68
$45.36
$68.04
$4.62
Earnings
Class
Income Tax & Health Surcharge
Obtaining an Income Tax File number, is done through The Board of Inland Revenue, which falls under the
Ministry of Finance. This number is used to submit income tax payments, as well as health surcharge
payments. The process entails the completion of an I.T. Form P-11/74. The completed P-11/74 must be
accompanied by a listing of individual directors’ names, addresses and personal Board of Inland Revenue
(B.I.R.) income tax numbers, and the original (plus a copy) Certificate of Incorporation for the said company.
All employees of the company must submit health surcharge payments. The numbers used for such
payments are their income tax file numbers.
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VIII.
TRADE AND INVES TMENT APPROVALS AND PROCEDURES
8 .1 .
Inves ting in Trinidad and Tobag o
Trinidad and Tobago is currently in the process of developing an Investment Promotion Act
Legislation in respect of incentives and licences are expected to fall within this Act when passed
and proclaimed.
8 .1 .1 .
Circums tances Under Which Licences Are Required
There is no approval or licence required for foreign investors in Trinidad and Tobago,
except:
⇒ to hold interest in land in excess of 5 acres for commercial purposes;
⇒ to hold interest in land in excess of 1 acre for residential purposes;
⇒ where the shareholding results in 30% or more of the total cumulative shareholding in
local public companies, being owned by foreign investors;
⇒ where a licence is required by anyone, whether national or non-national. (In such a
case, an application would have to be approved by the Ministry or authority
responsible for that activity, for example, drilling or mining activities, the Ministry of
Energy and Energy Industries; certain commercial activities, the Ministry of Trade
and industry; financial institutions, the Central Bank).
Where investors wish to obtain fiscal incentives offered by the government, an
application and approval is required.
8 .1 .2 .
Applications for Incentives
Applications for incentives are made through TIDCO the body that recommends to the
various Ministries, whether a project should be approved for incentives. Final approval
lies with the Ministries.
For the purpose of obtaining the incentives, Government is interested in factors such as:
•
•
•
•
•
•
•
•
Environmental impact of the project
Proposed value of the investment
Employment potential of the proposed project, for nationals
Net foreign exchange cash flow
Local value added
Potential export sales
Value of imports of raw materials and other goods
Potential income arising from taxes and duties imposed
A number of applications are processed by TIDCO then passed to the relevant
Government Ministry for approval. These include applications for:
•
•
Import duties concessions under Customs Act Sec. 56 for raw materials for approved
activities
Fiscal relief’s under the Fiscal Incentives Act for Approved Industries
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•
•
•
•
•
•
•
Tourism development incentives under the Tourism Development Act
Incentives for tourism projects
Incentives under the Finance Act 1988
Tax exemptions on rental income for commercial/industrial property gains or profits
under the Income Tax Amendment Act 1992
Foreign investment licence to hold commercial land in excess of 5 acres
Foreign investment licence where 30% or more of the total cumulative shareholding in
a local public company will be held by foreign investors
Work Permits.
FOR FURTHER INFORMATION PLEASE CONTACT
THE TOURISM AND INDUSTRIAL DEVELOPMENT COMPANY
OF TRINIDAD AND TOBAGO LIMITED (TIDCO)
10-14 PHILIPPS STREET, P.O. BOX 222, PORT OF SPAIN, TRINIDAD, W.I.,
TEL: (868) 623-6022/3; FAX: (868) 625-0837; 800 SERVICES: 1 (800) 595 1TNT
CARIBBEA N EXPRESS, BOX #TTN316, 8425 NW 29th Street, MIAMI, FL 33122, USA
8 .2 .
Import and Export Procedures
8 .2 .1 .
Importing
Licences
There are few items that require an import licence in order to enter Trinidad and Tobago.
Importers wishing to import goods that require a licence, are required to apply for a licence
from the Ministry of Trade and Industry. It is advisable to do so prior to arranging for the
goods to be shipped, in the event that an application for a licence is denied. The list of
items requiring an import licence is continuously reviewed, therefore, persons requiring
information on whether the item they wish to import requires a licence, should contact the
Licensing Section, Trade and Commerce Division of the Ministry of Trade and Industry.
Customs
A customs declaration form (Form C-82) is prepared by a customs broker on behalf of the
importer. This form, accompanied by supporting documents, such as an invoice from the
supplier, bill of lading, licence, if a licence was required, health certificates 4 among others,
has to be lodged with Customs, once the goods have arrived in Trinidad. The documents
are scanned into the ASYCUDA system, for verification and extracting of statistical
information and the duties determined accordingly.
Once the documents have been stamped by Customs and the duties paid, an inspection is
carried out at the port of entry, before the goods are cleared.
4 T h er e ar e so m e it em s, such as f o o ds, dr ugs, p lan t s an d liv e an im als, wh er e a h ealt h cer t if icat e is r equir ed f o r t h eir
im p o r t at io n t o T r in idad an d T o bago . Cust o m s r ef er s t h e do cum en t s f o r such it em s t o t h e r elev an t aut h o r it ies, wh ich in clude
t h e Fo o d an d Dr ugs I n sp ect o r at e, P lan t Quar an t in e an d t h e Min ist r y o f Agr icult ur e, Lan d an d Mar in e Reso ur ces, f o r t h eir
ap p r o v al. W h er e t h er e is a quer y , sam p les o f t h e it em s m ay be r equir ed t o un der go t est in g bef o r e such it em s ar e allo wed t o
be p ut o n sale in t h e lo cal m ar k et .
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Duties and Concessions
Raw Materials
Raw materials for approved industries are generally free of customs duties. Refer also to
the Customs Act.
Plant and Machinery
The majority of capital plant and machinery is free of duty or subject to a 2.5% rate of
duty.
CARICOM Goods
Under the Caribbean Common Market (CARICOM) trade agreement, no duty is paid on
goods coming from CARICOM member countries. For goods whose origin is outside of
CARICOM, a Common External Tariff (C.E.T.) exists. Effective July 1, 1998, duties ranged
from 0% to 20%.
Other Duty Free Goods
Under the various incentive programmes for approved projects, imports may be free of
duty.
8 .2 .2 .
Exporting
Exporters are required to make a declaration to Customs on the goods to be exported prior
to their export, and to have them examined before shipping. There is a system of priority
for exports to ensure that the minimum time is spent in the declaration and verification
process. The purpose of the declaration and verification is to prevent smuggling and
ensure that restricted goods, such as some mining and fish products, are accompanied by
their appropriate licences or certificates. Customs also performs agency duties in respect
of the VAT Administration office. Here they verify that goods on which no VAT has
been paid for the purpose of re-export, are being exported. Items being sent abroad for
repairs are also subject to a verification check, since the duties charged on their return
would be only on the cost of the repairs.
Exporting goods out of Trinidad and Tobago may involve contact with a number of
organizations:
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Table 8.2.2.1
Export Licences, Certificates and Procedures
Organization
Name of the Procedure
Comment
LICENCES
Ministry of Trade and Industry
Export Licence
Exporters are required to apply for licences from the
Ministry of Trade and Industry for the export of goods
on the negative list. Goods on the export negative list
include some marine species for the protection of local
heritage, live animals, works of art, artifacts and
archaeological findings, minerals, plants, subsidized
items and firearms. A prior recommendation in the
form of a stamp, is also required from the organization
responsible for safeguarding and monitoring the supply
of the goods. These may include: Fisheries Division
or Plant Quarantine of the Ministry of Food and
Marine Resources, The Commissioner of Police
for export of firearms and explosives or the
Ministry of Energy and Energy Industries for
Minerals.
Export Health Certificate for Live
Animals
The Ministry of Food Production and Marine Resources
also issues export health certificates for the export of
live animals, through the government veterinary office
of the Wild Life, Forestry Division.
Phytosanitary Certificate
This certificate may be required by the receiving
country, for the export of plants, such as cut flowers.
Health Certificate
This certificate may be required by the receiving
country, for the export of fresh and processed foods,
and drugs. The foods include fish, cooked meats, among
others.
HEALTH CERTIFICATES
Ministry of Agriculture, Land and
Marine Resources
Plant Quarantine of the Ministry of
Agriculture, Land and Marine
Resources
Food & Drugs Inspectorate and
Chemistry Divisions
of the Minist ry of Health
Analysis
Chemistry Food & Drugs Division also undertakes the
various analyses of the contents in foods, which may be
required for labelling and/or packaging, or as a
requirement of the importing country.
CERTIFICATES OF ORIGIN, FOR INCENTIVES OFFERED BY IMPORTING COUNTRY
TIDCO
Certificate
of
Origin
for
CARIBCAN, CARICOM/Venezuela
and Colombian trade agreements.
Required for receiving the concessions under the
Canadian/Caribbean
agreement,
the
CARICOM/
Venezuela trade agreements and the bilateral agreement
with Colombia.
Customs & Excise Division of the
Ministry of Finance
Certificate of Origin for exports to
the United States (General System
of Preference (G.S.P.) certificate)
and to Europe and the United
Kingdom (Eur 1 certificate).
Required for receiving the concessions under the
Caribbean Basin Initiative (C.B.I.) and under the Lomé
Convention trade agreements, respectively. The forms
are stamped by Customs.
Trinidad and Tobago Chamber of
Industry & Commerce
Certificate of Origin
Some countries specifically ask for a stamp from a body
designated to issue Certificates of Origin. The Chamber
of Industry and Commerce issues certificates for those
countries where there is no trade agreement with
Trinidad and Tobago.
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Ministry of Trade and Industry
Authentication of signatories and /
or Documents
Some countries specifically ask for a stamp from the
Ministry of Enterprise Development, Foreign Affairs
and Tourism, authenticating signatories and / or
documents.
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CUSTOMS DECLARATION AND INSPECTION
Customs Declaration and Inspection
Customs & Excise Division of the
Ministry of Finance
Customs & Excise Division of the
Ministry of Finance
8 .3 .
Customs Inspection
Exporters are required to make a declaration to
Customs on the goods to be exported, prior to their
export. Documents are lodged at the Customs & Excise
Division office in Port of Spain, San Fernando and
Tobago. There is a system of priority for exports to
ensure that the minimum time is lost in the declaration
process.
Goods are subject to an examination before shipping, at
the port of exit, for the purpose of preventing
smuggling. Customs also performs agency duties in
respect of the VAT Administration office, where they
verify that goods on which no VAT has been paid, for
the purpose of re-export, are being exported. Items
being sent abroad for repairs, are also subject to a
verification check, since the duties charged on their
return would be only on the cost of the repairs.
Obtaining Commercial Property
8 .3 .1 .
Office S pace
A wide range of office space is available for rent, both within the central business district
of Port of Spain, as well as in areas located around the city. There are several real estate
agencies with commercial divisions that can assist a foreign investor in locating office
space.
Within the central business district of Port of Spain, rental of office space costs between
TT$5.00 -TT$10.00 per square foot per month (approximately US$0.79 - US$1.58), inclusive
of air-conditioning, carpeting and parking facilities in most cases. Executive Office Space
(US$1.00). Outside the main city, rental costs may be as low as TT$1.80 approximately
US$0.28 per square foot, to a high of TT$8.00 (approximately US$1.26 per square foot.
8 .3 .2 .
Cons tructing Properties
The development approval process for buildings involves a number of steps. It should be
noted however, that the current legislation under which these procedures are designed is
being revised and to be established in a new Planning and Development Act is expected.
This will aim at streamlining the process to make it easier for investors.
The current process can be found in table 8.3.2.1
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Table 8.3.2.1 Constructing a Building
Organizations with which Interfaces
ORGANIZATION/STEPS
Des ig n and Drafting of Plans .
Town and Country Planning Divis ion of
the Minis try of Infras tructure
Development and Local Government
For further guidance in the development
process, applicants are advised to refer to
the document entitled “Guide to
Developers and Applicants for Planning
Permission” which was prepared by the
Town and Country Planning Division.
COMMENTS
Plans usually consist of the site plans, elevation, floor, and
structural designs, plans for water distribution and sewerage
disposal and may also contain an electrical wiring plan.
The developer has two alternative optional routes to obtain
planning permission to erect buildings:
Option 1: a two-stage proces s of obtaining Outline Planning
Permission by submitting an application in outline which must be
followed by Approval of Reserved Matters before any works can
commence on the site.
Option 2: A single-stage process whereby a detailed application is
submitted at first instance for Full Planning Permission.
Outline Planning Permission requires submission of a site plan, Form
TCP3 in duplicate along with a written description of the conceptual
proposal. Outline Planning Permission grants permission for the
broad land use, size and scale of the development and provides the
site development standards and conditions of planning permission.
The details of matters reserved in the Outline Planning Permission
for subsequent approval must be submitted within one year of the
date of the Outline Planning Permission failing which the permission
expires and is of no effect.
Approval of Reserved Matters is the stage of approval of the details
reserved in the Outline Planning Permission and usually refers to
design, ext ernal appearance, sitting, parking, access, etc. The details
submitted must be consistent with the standards and conditions set
out in the Outline Planning Permission. Plans, drawings and a
completed Form TCP1 must be submitted in quadruplicate.
Full Planning Permission requires submission of a detailed
application at first instance providing all details, plans and
specifications of the building, including its sitting, floor plans,
elevations, design, external appearance, access, parking etc. This
application is made on form TCP1 accompanied by required plans
and drawings, all in quadruplicate.
A Certificate of Environmental Clearance (CEC) may also be
requested in cases where the type of development is likely to cause
an adverse impact on the environment or where the site is located in
an environmentally sensitive area.
A CEC may be requested upon the submission of an application for
Outline Planning Permission, or upon submission of an application
for Full Planning Permission.
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Local Health Authorities
Upon receiving either Approval of Reserved Matters or Full
Planning Permission from the Town and Country Planning Division,
plans are forwarded to the relevant local health authority, which
ensures that the proposed development satisfies public health
requirements, such as having sufficient ventilation, water and
sewerage disposal arrangements, and for the issue of a building
permit in respect of the structural integrity of the building.
Chief Designs Engineer Ministry of
Works and Transport
Where the local authority does not have an in-house engineer, the
Chief Designs Engineer of the Ministry of Works and Transport
scrutinizes plans for their structural integrity.
Water and S ewerag e Authority (WAS A)
They would be concerned with water distribution and sewerage
disposal for major developments.
Fire S ervices
Required for buildings to which the public has access. This
approval is required before Full Planning Permission.
Factory Ins pectorate Divis ion
Required for developments that involve erection of factory
buildings. This approval is a condition of Full Planning Permission.
Hig hways Divis ion of the Minis try of
Work s and Trans port
Required if the development is to have direct access to a highway.
Drainag e Divis ion - Minis try of Work s
and Trans port.
Required if a building is sited in an area susceptible to drainage
problems and if effluent flows from the building.
Commis s ioner of S tate Lands – Director
of S urveys
Buildings on leased State lands require approval of the Director of
Surveys prior to submission of an application to the Town and
Country Planning Division.
Water Connections from Water and
Sewerage Authority (WASA)
Upon approval of plans for water distribution and sewerage
disposal, a temporary water connection may be requested for the
construction phase.
For final connection, an inspection is carried out by WASA and a
certificate is issued if the water and sewerage layout has been
approved.
Electrical Connection from Trinidad and
Tobago Electricity Commission (T&TEC)
An inspection must be carried out during the construction phase at
a particular point in the installation of the wiring and, at the end,
before approval and connection are made.
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The Local Health Authority carries out an inspection during the
course of the construction and at the end. A completion certificate
may be granted on completion up to a certain phase of the
construction.
Completion Certificate
Quantity Surveyor’s Report
If the project is to be financed by a financial institution, they will
request a report from a designated Quantity Surveyor, who reports
on the estimated cost of the building, based on the approved plans.
Valuation of the Property
If the project is to be financed by a financial institution, they will
request a report from a designated Valuator, prior to construction
based on the approved plans, and upon completion of the building.
The Valuator report on the market value of the property based on
several factors and recommends the amount of insurance coverage.
Commissioner of Lands and Surveys
An assessment is carried out for the purpose of determining land
and building tax rates. The assessment is then passed to the Water
and Sewerage Authority for determining water rates.
8 .3 .4 .
Buying an Exis ting Property
Apart from the legislation under the Foreign Investment Act of 1990 for the purchase of
land by a foreign investor, there are no approvals required for buying a property,
providing the use of the property remains the same. If it is going to be used for a purpose
other than the intended use when it was constructed, the investor will have to obtain
approval from the Town and Country Planning Division. If finance has to be sought from
a financial institution, a valuation of the property would have to be obtained. In addition,
the conveyance of the property would have to be undertaken by an Attorney, as well as a
search conducted to ensure that title is clear.
8 .4 .
Work Permits , Res ident S tatus , Vis as and Pas s ports
8 .4 .1 .
Work Permits
Who requires a Work Permit?
Under the Immigration Act Chapter 18:01 of Trinidad and Tobago, no person other than a
citizen or resident is allowed to engage in any profession, trade or occupation whether for
gain or not, or be employed, unless a valid work permit is in force in relation to that
person.
Also included under the Immigration Act, is the allowance for a person other than a citizen
or resident to be employed in Trinidad and Tobago for a maximum of up to 30 days at any
one time in a 12-month period. This means that this person will be allowed to enter the
country to work without a work permit only under the condition that he/she will be in the
country for a period not exceeding 30 days and will not be re-entering the country within a
12 month period.
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How to apply for a Work Permit?
Applications for work permits are made through the Work Permit Secretariat, of the
Ministry of National Security. Investors may also make the application through TIDCO.
An individual cannot apply for a work permit on his own behalf. The application must be
proposed by the Company with whom the individual will be employed in Trinidad and
Tobago, the Joint Venture Partner, or by an Attorney.
Documents Required:
1.
2.
3.
A completed application form plus 11 copies.
A covering letter from the Company, the Joint Venture Partner or the Attorneys
applying on behalf of the individual, explaining the thrust of the operations to be
conducted and the reason for the work permit.
In the case of a foreign investor, the letter should also include the venture capital to
be put into the business operations in Trinidad and Tobago. The letter should be
addressed to:
Th e Perman en t Secretary ,
M in is try o f Natio n al Secu rity ,
31-33 A b ercro mb y Street,
PORT OF S PAIN.
TEL: 1 -8 6 8 -6 2 3 -2 4 4 1 -8
FAX: 1 -8 6 8 -6 2 7 -8 0 4 4 .
4.
5.
6.
Three photographs of the individual for whom the work permit is required, one of
which is attached to the original application form.
Two Character References, 1 of which must be from the last employer.
A police certificate of good character from the country where the individual has been
living over the last 5 years.
Oth er Req u iremen ts fo r Emp lo yees
7.
8.
9.
The individual on whose behalf the work permit is required, must possess some
qualification that is unique and that a local resident does not possess. Proof of the
qualifications must also be presented with the application.
An advertisement stating what the job entails, must have run for at least 1 to 2 weeks
in 2 daily newspapers.
A copy of the advertisement must also be presented with the application.
Cost of the Work Permit
There is an application fee of TT$600.00 (approximately US$95), which is non-refundable,
and a fee for the duration of the work permit, at TT$450.00 (approximately US$71) per
month. The full amount for the duration is payable upon approval of the permit and the
duration.
Spouses and Children
Residence Visas are issued to the spouse and children of someone holding a work permit.
If the spouse wishes to work, the same application procedure for work permits is
undertaken.
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8 .4 .2 .
Res ident S tatus
Persons qualifying to apply for the status of residency are from the following categories:(i)
(ii)
(iii)
spouses of citizens or residents,
parents of citizens/residents, and
persons who have been working in the country for a
cumulative continuous period of five (5) years.
Such persons by reason of their education, occupational qualifications, employment
record, training skills, or other special qualifications, must be established or are likely to
establish themselves successfully in Trinidad and Tobago in a profession, trade, self
operating business or agricultural enterprise, and have sufficient means of support to
maintain themselves and their immediate family in Trinidad and Tobago.
In determining the suitability of an applicant for residency, the Minister shall be satisfied
that the applicant: (i)
(ii)
(iii)
had entered the country legally,
is not in a prohibited class, and
is of good character as evidenced by a Police Certificate of
Character.
Should someone be granted residency he/she automatically has the right to work.
An application accompanied by 3 photographs is submitted in duplicate to:
Th e Perman en t Secretary ,
M in is try o f Natio n al Secu rity ,
31-33 A b ercro mb y Street,
PORT OF S PAIN.
TEL: 1 -8 6 8 -6 2 3 -2 4 4 1 -8
FAX: 1-868-627-8044.
Applicants may be required to show the marriage certificate and spouse’s or parent’s birth
certificate or passport in the case of applicants whose spouses or parents are citizens or
residents. Where the applicant is a person who has been working in the country for a
cumulative continuous period of 5 years, they present the work permit. The applicant is
also interviewed by the Immigration Department.
8 .4 .3 .
Vis as
All persons require visas to enter Trinidad and Tobago. However, due to historical ties
and bilateral agreements, citizens of several countries are not required to have visas for
entry as stated hereunder:
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(i) Commonwealth Countries except:
Australia
Fiji
Uganda
India
Nigeria
Guinea
New Zealand
Papua New
Tanzania
Cameroon
Sri Lanka
Canada
(ii) EU Countries:
England
France
Belgium
Greece
Ireland
Spain
Portugal
Italy
Germany
Netherlands
Denmark
Luxembourg
(iii) Countries having visa abolition agreements with Trinidad and Tobago
Table 8.4.3.1. Countries Having Visa Abolition Agreements With Trinidad and Tobago
The Government of Trinidad and Tobago has entered into reciprocal Visa Agreements with Brazil,
Costa Rica, Colombia, Uruguay and South Korea.
Country
Turkey
Sweden
Norway
Iceland
Switzerland &
Liechtenstein
Finland
Israel
Brazil
Colombia
Austria
For Holidays
No Visa Required
No Visa Required
(3 months or less)
No Visa Required
No Visa Required
For Employment
Visa Required
No Visa Required
(3 months or less)
No Visa Required
No Visa Required
For Residence
No Visa Required
Visa Required
No Visa Required
No Visa Required
Visa Required
No Visa Required
(3 months or less)
Visa Required
Visa Required
Visa Required
Visa Required
No Visa Required
Visa Required
No Visa Required
No Visa Required
No Visa Required
No Visa Required
Visa Required
Visa Required
Visa Required
Visa Required
Visa Required
Visa Required
(iv)
Citizens of USA on Vacation for three (3) months or less
(v)
Citizens of Venezuela arriving from Venezuela on vacation for fourteen (14) days or
less. Holders of Venezuelan Official and Diplomatic Passports accredited to
Trinidad and Tobago are exempted from the Visa requirements for the period of
their assignment. Holders of Venezuelan Official and Diplomatic passports not
accredited to Trinidad and Tobago on Official Missions are exempted from visa
requirements for one (1) month or less.
(vi)
Citizens of Surinam, Martinique, Guadeloupe, French Guyana, Netherlands Antilles
(Curacao, Aruba, Bonaire, St. Eustatius, St. Maarten and Saba)
(vii)
All holders of OAS passports do not require visas for entry into Trinidad and
Tobago.
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(viii) Holders of UN passports require visas (if necessary as a result of their nationality).
If on arrival at the Port of Entry, the person has no visas, the passport may be lifted
and forwarded to the Chief Immigration Officer for a visa exemption to be
requested. If there is not enough time, the passport may be held, a receipt given
and returned to the holder on departure. Enough time could be seven (7) days.
(ix)
Holders of Diplomatic Passports are not automatically exempted from visas.
(x)
Citizens of South Africa are allowed entry into Trinidad and Tobago for religious,
cultural, sporting, educational activities with visas issued without reference. For
any other purpose applications for visas must be referred.
(xi)
Visa Waivers may be issued to persons not listed in the Second Schedule.
However, persons from the Far East or Middle East would only be given this facility
after consultation.
Original list of Second Schedule Countries:
Albania
Bulgaria
Cuba
Czechoslovakia
Hungary
North Korea
People’s Republic of
China
Poland
Romania
Yugoslavia
South Vietnam
North Vietnam
USSR
Countries added to Second Schedule:
Dominican Republic
Haiti
India
Iraq
Jordan
Kuwait
Lebanon
Libya
Nigeria
Papua New Guinea
Saudi Arabia
Sri Lanka
Syria
Tanzania
Uganda
The former U.S.S.R., Czechoslovakia and Yugoslavia have been divided into the
following:U.S.S.R.
Armenia, Azerbaizhan, Belarus, Estonia, Georgia, Kazakhstan, Kirghizia, Latvia, Lithuania,
Moldavia, Russia, Tadzhikistan, Turkmenia, Ukraine, Uzbekistan.
YUGOSLAVIA
Bosnia-Herzegovina, Croatia, Montenegro, Serbia, Slovenia, the Former Yugoslav
Republic of Macedonia.
CZECHOSLOVAKIA
The Czech Republic, the Slovak Republic.
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8 .4 .4 .
Pas s ports
Passports valid for the length of stay are required for all arrivals.
8 .5 .
Intellectual Property
8 .5 .1 .
Intellectual Property
In 1994, Trinidad and Tobago signed the Uruguay Round Final Act containing the
Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), as well as a
bilateral intellectual property rights agreement with the United States. In order to honour
these two agreements, as well as several other intellectual property conventions and
treaties, this country enacted several pieces of intellectual property legislation, which are
as follows:
•
•
•
•
•
•
•
•
•
•
Patents Act and Rules, 1996
Copyright Act, 1997 and Copyright (Customs) Regulations, 2000
Industrial Designs Act and Rules, 1996
Geographical Indications Act, 1996
Layout Designs (Topographies) of Integrated Circuits Act and Rules, 1996
Protection Against Unfair Competition Act, 1996
Protection of New Plant Varieties Act, 1997 and Regulations 2000
Patents (Validation of International Applications filed under PCT) Act 1999
Patents (Amendment) Act, 2000
Intellectual Property (Miscellaneous Amendments) Act, 2000
Radical changes have also been made to this country’s trademark law by the Trade Marks
(Amendment) Acts of 1996 and 1997.
With the entry into force of the Patents Act, 1996 on December 1, 1997, the new
Intellectual Property Office was created, headed by a Controller, who is responsible for
administering all intellectual property laws in Trinidad and Tobago. Applications are
made to:
The Controller
Intellectual Property Office
72-74 South Quay
Port of Spain
Trinidad and Tobago
TEL:
FAX:
1 868 625 9972
1 868 624 1221
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8 .5 .2 .
Trade Mark s
The Trade Marks Act, Chapter 82:81, the Trade Marks (Amendment) Act, No. 17 of 1994
and the Trade Marks (Amendment) Rules 1994 Legal Notice No. 198, provide for the
registration of both goods and service marks. The international classification of goods
and services has been utilized since 20 October 1994, replacing the former national
classification (the old United Kingdom Schedule III). Trademarks are being renewed in
this old classification, but applications filed after 20 October 1994 follow the international
classification.
Registration of trademarks may be submitted either in person or through an agent. Where
the applicant is not resident or carrying on business in Trinidad and Tobago, the
Registry’s practice is to require the appointment of an agent, usually an attorney-at-law,
whose address is used as the address for service. If an agent is used, a formal, written
notification must be given to the Registry, indicating that an agent has been appointed
and that the agent has been given the authority to act on the applicant’s behalf.
The key steps for registering a trademark are as follows:
1.
An application must be made in the prescribed format and completed with a
representation of the trademark, either a device or word. Six prints of the mark must
accompany the application. If the mark is filed in black and white, it is deemed
registrable for all colours. Multiclass applications can now be filed.
2.
Once the mark meets the requirements for registration, it is advertised in a periodical,
such as a daily newspaper. Once there are no objections within three months of the
application, a certificate is issued.
3.
The official fees for filing are TT$315 (US$50.00), advertisement charges of
approximately US$50.00 depending on the size of the advertisement and a Certificate
fee of TT$157 (US$25.00). For each additional class filed in one application is
TT$107 (approximately US$17.00). Once registered the term of a mark is valid for ten
(10) years from the filing date.
The Trade Marks (Amendment) Act, 1996, which took effect on August 16, 1996, extended
the scope of protection granted to registered marks, as well as introduced protection for
well-known marks. The former fourteen (14) year term of protection was reduced to ten
(10) years and criminal prosecution can now be brought in cases of unauthorized use of
registered marks, including use of well-known marks.
The Trade Marks (Amendment) Act, 1997 and Rules came into force on September 5, 1997
and introduced customs procedures with regard to border measures. Customs authorities
will have the right to seize goods coming into Trinidad and Tobago, in order to prevent
goods bearing infringing marks from being released into the channels of commerce.
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8 .5 .3 .
Patents
The Patent Act, 1996 entered into force on December 1, 1997 and introduced a full search
an examination system. In order to register a patent, the following documents are
required:
-
An Authorisation of Agent
Three (3) copies of the specification claims and drawings
A statement justifying the applicant’s right to the invention
(if the applicant is not the inventor)
The official fees for filing a patent application is US$335.00 and for requesting examination
is TT$1575.00 (US$250.00). Annual maintenance fees are required to maintain the patent
or patent application.
Patents can also be filed under the Patent Co-operation Treaty. The time limits for entry
into the national phase in Trinidad and Tobago are thirty months from the date of first
filing under PCT Article 22 (Chapter 1) and thirty-one months under PCT Article 39
(Chapter II).
The term of a patent is twenty years from filing.. Applicants residing outside of Trinidad
and Tobago must be represented by an attorney-at-law, registered, residing and having a
place of business in Trinidad and Tobago.
8 .5 .4 .
Indus trial Des ig ns
The Industrial Designs Act, 1996 also entered into force on December 1, 1997 and
continues the simple registration system of the former law. Protection is provided for
industrial designs that are new and not contrary to public order or morality. The term of
protection will be five years from the filing date. Registration can be renewed for two
further consecutive five-year periods.
In order to file an application, the following documents are required:
-
An Authorisation of Agent
Four (4) graphic representations (drawings or tracings) for 2-dimensional designs
Four (4) graphic representations (drawings or tracings) of each of the different sides
of the design for 3-dimensional designs
A statement justifying the applicant’s right to the registration of the design (if the
applicant is not the creator of the design)
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8 .5 .5 .
Copyrig ht
The Copyright Act, 1997 entered in force on October 1, 1997 and has taken into account
this country’s multilateral and bilateral copyright obligations. Some of the changes
introduced are the following:
-
-
-
the introduction of periods of protection for collective works (other than works of
applied art and audio –visual works), in which copyright vests in non-human authors
such as publishing houses.
the protection of works irrespective of its mode or form of expression (this means that
aural works are protected, albeit, they have not been expressed in material form).
neighbouring rights in a broadcast made by foreign performers and foreign producers
will be protected.
copyright in audio-visual productions made by foreign performers and foreign
producers will be protected.
civil and criminal proceedings can be brought against any person who or organization
which manufactures or imports for sale or rental, any device (or means) which is
specifically designed to decode or circumvent another device (or means) intended to
prevent or restrict reproduction of a work or production.
border measures
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8 .5 .6 .
Geog raphical Indications
The Geographical Indications Act, 1996 which came into force on December 1, 1997
introduced protection for geographical indications in Trinidad and Tobago for the first
time and a simple registration system. The subject matter of protection goes beyond
appellations of origin and includes protection for indications, where the reputation or
other characteristic of the goods is attributable to its geographical origin. Protection is
available irrespective of registration, but registration raises a presumption that the
indication registered is a geographical indication within the meaning of the legislation.
Criminal sanctions may be imposed upon persons who deliberately and wrongfully use
geographical indications.
8 .5 .7 .
Layout Des ig ns
The Layout Designs (Topographies) of Integrated Circuits Act, 1996 entered into force on
December 1, 1997 and introduced protection for the first time in Trinidad and Tobago for
layout designs of integrated circuits, which fulfil the meaning of originality as defined in
the Act. A simple registration system is envisaged and the term of protection is ten (10)
years, either from the date of first commercial exploitation or, if not yet commercially
exploited, from the filing date.
8 .5 .8 .
Unfair Competition
The Protection Against Unfair Competition Act, 1996 introduced legislation for the first
time in Trinidad and Tobago to protect against unfair competition. The law provides,
inter alia, for protection in the course of industrial or commercial activities, against the
following:
-
damaging another’s goodwill or reputation
causing confusion with respect to another’s enterprise
misleading the public
discrediting another’s enterprise or activities
disclosure, acquisition or use of secret information (trade secrets) including use
of secret test or other data submitted to a competent authority for marketing
approval of pharmaceutical or agricultural chemical products utilizing new
chemical entities.
In addition, any act or practice in the course of industrial or commercial activities that is
contrary to honest practices, shall constitute an act of unfair competition
8 .5 .9 .
New Plant Varieties
The Protection of New Plant Varieties Act, 1997 came into force on December 1, 1997
introduced protection for plant breeder’s rights in respect of plant varieties of the genera
and species listed in a special national list. Once the application fulfills the conditions of
registration, namely, novelty, distinctiveness, homogeneity, stability and a variety
denomination acceptable for registration, a breeder’s right is granted by the Intellectual
Property Office. Applications may be filed by nationals or residents of Trinidad and
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Tobago, of States or Intergovernmental Organisations which are party to the International
Convention for the Protection of New Plant Varieties (UPOV) of 1978 and of 1991 and
States which, without being party to UPOV, grant reciprocity of treatment to Trinidad and
Tobago. The new law is consistent with the UPOV Convention of 1978. The term of
protection is either 15 or 18 years, depending on the genera or species to which the
variety belongs. Renewal fees are payable annually.
Trinidad and Tobago is party to the following Conventions/Agreements on Intellectual
Property:
1.
2.
3.
4.
5.
6.
7.
8.
9.
Paris Convention for the Protection of Industrial Property of 20th March, 1883 (The
Stockholm Act (1967) as amended on October 2, 1979)
Berne Convention for the Protection of Literary and Artistic Works (1886) was
amended in 1979
Geneva Convention for the Protection of Producers of Phonograms Against
Unauthorized Duplication of Their Phonograms
Patent Co-operation Treaty
Trade Mark Law Treaty
Final Act Embodying the Results of the Uruguay Round of Multilateral Trade
Negotiations
Memorandum of Understanding Between the Government of Trinidad and Tobago
and the Government of the United States of America Concerning Protection of
Intellectual Property
Nice Agreement Concerning the International Classification of Goods and Services
for the Purposes of the Registration of Marks (1957)
Vienna Agreement Establishing an International Classification of the Figurative
Elements of Marks (1973)
Source: Brien Anthony de Gannes, J. D. Sellier and Company
(SECTION 8.5 INTELLECTUAL PROPERTY) February, 2001
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IX.
INVES TMENT INCENTIVES
9 .1 .
Reg ulation
Investment incentives are co-ordinated through the Trade and Investment Unit
of the Tourism and Industrial Development Company of Trinidad & Tobago Limited (TIDCO).
TIDCO will assist investors in applying for approval of investment incentives.
There are many different investment incentives:
9 .2 .
•
Concessions from import duty on raw materials, machinery, and equipment for approved
industrial projects.
•
Exemption from corporation tax on profits, and from tax on dividends (under the Fiscal
Incentives Act and Tourism Development Act).
•
Loss write-off provisions.
•
Training subsidies for developing new skills.
•
Provision of industrial sites and developed industrial accommodation.
•
Export promotion and assistance.
•
Export credit insurance.
•
Double taxation relief.
•
Exemption from Value Added Tax on inputs for companies exporting 80% of production.
•
Free Zones under Act 19 of 1988.
•
Venture Capital Companies under Act 22 of 1994.
•
Incentives in some cases are available only to locally incorporated companies or locally
owned companies.
Import Duty Conces s ions
The Customs Act Sec.56 allows for concessions to be granted to approved enterprises for
approved industrial projects.
The applications for approval are made to the Ministry of Trade and Industry via TIDCO and are
granted to a wide range of manufacturing companies that provide increased employment and use
local materials to add value.
9 .3 .
Tax Holiday - Fis cal Incentives Act
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The Fiscal Incentives Act allows for the granting of a tax holiday (or partial holiday) for periods up
to ten years for the manufacture of approved products by approved enterprises.
Approved enterprises fall into separate classifications including:
•
Highly capital intensive enterprises investing in excess of TT$50 million (US$8.3million)
•
Export enclaves, where products are manufactured exclusively for export.
•
Enterprises using a significant portion of local inputs.
These concessions are discretionary and require applications to the Ministry of Trade and
Industry via TIDCO. Recent precedents include the grant of five-year tax holidays to major
petrochemical plants in Point Lisas.
An approved enterprise will also be granted exemption from customs duties and VAT on the
construction of the approved project. These projects have usually been large-scale manufacturing
within one of the three classifications, and are available only to locally incorporated companies.
The tax exemption can be extended to dividends that may be tax exempt and free of non-resident
withholding tax on any taxes in excess of the investor’s tax rate on the dividend in his country of
residence.
Recent precedents include the grant of five year tax holidays to major petrochemical plants in Point
Lisas and a reduction in the rate of corporation tax by 15% for seven years.
9 .4 .
Tax Holiday – Touris m Development Act
Under the Tourism Development Act the owner an/or operator of the approved hotel is eligible for
a tax exemption on profits for a period of up to seven (7) years in respect of newly constructed and
renovated hotels.
In addition, the following Tax Concessions are granted for an approved hotel project:
a)
import duty exemption on building materials and hotel equipment used in the construction or
equipping the project. Although value added tax remains applicable;
b) business levy exemption;
c) income tax exemption on dividends accruing to the owner/or operator; where a dividend is
paid to a non-resident the exemption is limited to the extent that the tax payable in Trinidad
and Tobago exceeds the tax payable in his country of residence;
d) tax exemption to financial institutions on interest on approved loans for a period of 10 years
or for the duration of the loan if less;
e) a person who makes an investment in a year of income in the equity capital of an approved
hotel or tourism project is allowed a deduction in ascertaining his chargeable income such
investment up to a maximum of twenty five percent of the investment. The deduction is
spread equally over three years including the year in which the investment is made.
Tax concessions are granted on a discretionary basis by the Ministry of Culture and Tourism
based on the size of the hotel and the capital expenditures involved.
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9 .5 .
Inves tment Incentives - Free Zones Act
The Free Zone Act 19 of 1988 allows for duties and tax exemptions over an indefinite period for
manufacturing, international trading and service projects that are dedicated to export.
Enterprises are approved by the Free Zones Company to operate in areas designated as free zones.
The criteria for approval includes:
-
a company incorporated or registered in Trinidad and Tobago
job creation
new investment
development of skills
access to overseas markets
Free Zone Enterprises are not subject to:
import and export licensing
customs duties and taxes
corporation or withholding taxes on profits or sales
land and building taxes
work permit fees
Approved Enterprises can obtain approval to sell up to 20% of total exports into the domestic
market, subject to applicable duties and taxes.
Primary petroleum and natural gas projects or production activities in which petroleum, natural gas
or petrochemicals are a major input and projects involving investment in excess of US$50 million
would not qualify for free zone approval.
The prescribed activities that may be carried on in a free zone include:
-
Warehousing and storing
Manufacturing
Transhipment
Loading and unloading
Exporting
Importing
Service operations including banking, insurance and professional
services
Packaging and shipping
Processing, refining, purifying and mixing
Constructing, altering, reconstructing, extending or repairing infrastructure or
premises and equipping of premises in a free zone.
Sale, lease, rental and management of free zone land, infrastructure, premises,
plant, equipment, facilitating and services.
Merchandising, including international trading in products
Banking and insurance activities carried on in a free zone are subject to the Financial Institutions
and Insurance Acts respectively.
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9 .5 .1 .
Free Zones Company
.
The Trinidad and Tobago Free Zones Company Limited approves and regulates
companies in free zones and makes recommendations to the Ministry responsible for
Industry for designation of new free zones areas.
For more information contact:
The Trinidad and Tobago Free Zones Company Limited
Albion Court
#61 Dundonald Street
PORT OF SPAIN
TEL.: 1-868-623-8363 or 1 868 625 4749
FAX: 1-868-625-4755.
9 .6 .
Cons truction Incentives
Local construction is provided with a range of tax incentives some of which are discretionary and
some of which are performance based.
9 .6 .1 .
Approved Property Development Company
Companies engaged in both urban and rural property development may apply to the
Board of Inland Revenue to be “approved” as an urban and rural property development
company. To be approved, companies must be locally owned and undertake construction
in both rural and urban areas. Once approved they are entitled to an allowance against
their taxable income of 15% of construction costs for commercial properties completed in
the year of income.
9 .6 .2 .
Hous ing Act Exemptions
The Housing Act allows for the approval of the profits from construction of certain
dwelling houses to be tax exempt. To be exempt the houses must have construction costs
of less than TT$250,000.
An approved housing company will also be allowed to distribute tax-exempt profits by
way of tax-free dividends.
Any houses constructed by an approved housing company may then be exempted from
income tax on rentals for a period of ten years from the construction date.
9 .6 .3 .
Other Cons truction Tax Incentives
The Income Tax Act also provides for construction incentives that are performance based.
Any taxpayer may now obtain a wear and tear allowance on a newly constructed
commercial property at the rate of 10% per annum on the declining balance.
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9 .7 .
S pecial Clas s es of Company
The Income Tax Act provides for several special classes of company that are entitled to a tax credit
of 25% of their chargeable income for seven years. This reduces their effective tax rate to 15% from
the statutory rate of 30%.
These special classes of company include:
•
approved small companies
•
approved companies trading in a regional development area
•
an approved activity company.
These special companies must be locally incorporated and owned and are subject to a rigorous
approval process to ensure criteria defined in the Income Tax Act are complied with. The approval
process is via TIDCO except for approved small companies which is via the Business Development
Company Limited.
9 .8 .
Los s Relief
The Income Tax Act and Corporation Tax Act provide for the carry-forward of tax losses without
limitations. Tax losses may be lost if a company’s ownership changes with a view to transferring
the losses. Group relief is available for 100% owned subsidiaries and parents but the company
benefiting from surrendered tax losses must pay at least 75% of the taxes that would otherwise
have been due.
9 .9 .
S pecial Tax Allowances for Exporters
Performance based incentives exist to encourage exports, in particular: • Promotional Expenses
Promotional expenses wholly and exclusively incurred in order to create or promote the expansion
of foreign markets (outside CARICOM) for the export of goods or construction industry services
are allowed to be grossed up to 150% of the expenses incurred.
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9 .1 0 .
Venture Capital Act
The Venture Capital Act established a venture capital investment programme to approve venture
capital companies. A tax credit is allowed at the marginal rate for investment in registered venture
capital companies that are approved and monitored by a government appointed administrator.
Dividends from a venture capital company are tax-exempt. For more information contact:
The Office of the Administrator
Venture Capital Incentive Programme
23 Chacon Street
Port of Spain
Trinidad W.I.
TEL: 1-868-624-3068
FAX: 1-868-624-5693
9 .1 1 .
Non-Tax Incentives
Several non-tax incentives exist to assist increased production and Extra-Caricom exports. These
are administered by TIDCO.
9 .1 2
Ag ricultural Incentives
The Ministry of Agriculture, Land and Marine Resources has designed a new package of
agricultural incentives including:
•
•
•
fiscal incentives, mainly in the form of duty-relief for a range of items such as :
wheel tractors,
agricultural inputs (e.g. insecticides, herbicides, fungicides, etc.),
hand tools,
small machinery,
vitamin/drug preparations for livestock/poultry,
vehicles (VAT relief),
stamp duty exemption on a range of agricultural inputs, marine accessories, boat
equipment.
guaranteed prices for the following commodities :
sugar
rice
coconut
citrus
cocoa
coffee
milk
Other direct support measures such as :
input subsidies : planting material, breeding stock, fuel, etc.
subsidised services : soil conservation, veterinaries services
subsidies for pasture establishment/rehabilitation, water pumps and other specific
investments.
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This incentive programme is expected, among others, to attract higher levels of investment capital
and technology, foster linkages between primary producing and agro-processing sectors and
enhance the foreign exchange earning capacity of both traditional and non-traditional sectors.
This set of incentives is only available for registered farmers. Farmers who wish to be registered
would have to address their request to one of the regional offices of the Ministry of Agriculture,
Land and Marine Resources according to their place of residence.
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X.
THE TAX S YS TEM
1 0 .1 .
The Tax S ys tem
1 0 .1 .1 . Principal Taxes
The principles in Trinidad and Tobago are income tax, including withholding tax, corporation tax,
business levy, green fund levy, various petroleum taxes, value added tax (VAT) and customs and
excise duties.
Other taxes include stamp duties, road traffic licence fees, road improvement tax, local real estate
taxes and betting and gambling taxes. No inheritance or gift taxes are levied and there are no death
duties.
The Tax System at a Glance
INCOME TAX
CORPORATION
TAX
30% highest rate
30% on chargeable profits.
35% on chargeable profit s of
petrochemical, LNG and petroleum
marketing companies
BUSINESS LEVY
2% on gross sales
GREEN FUND
LEVY
0.10% o n g ro s s s ales an d
receip ts
PETROLEUM
TA XES
50% Petro leu m Pro fits Tax
5% Un emp lo y men t Lev y
Su p p lemen tal Petro leu m Tax (SPT) 15% Lan d
Op eratio n s an d 55% fo r M arin e Op eratio n s
VA LUE
A DDED
TA X (VA T)
W ITHHOLDING TA X
CUSTOM S
A ND
EXCISE DUTY
15% o n ch arg eab le s u p p lies
maximu m 15% o n d iv id en d s
maximu m 20% o n o th er p ay men ts
Co mmo n Extern al Tariff
OT HER T AXES: ST AMP DUT Y ( I NCLUDI NG CONVEYANCE OF REAL EST AT E) ; REAL EST AT E T AXES; HOT EL
ROOM T AXES I NSURANCE P REMI UM T AXES; ROAD T RAFFI C LI CENCE AND VEHI CLE
T RANSFER T AX; BET T I NG, GAMI NG AND LOT T ERI ES; ROAD I MP ROVEMENT T AX
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1 0 .1 .2 . Bas ic Leg is lation
There is a wide range of tax and incentive legislation including:
- Income Tax Act
- Corporation Tax Act
- Value Added Tax Act
- Petroleum Taxes Act
- Income Tax (In Aid of Industry) Act
- Unemployment Levy Act
- Income Tax (Employment) Regulations
- Double Tax Treaties
- Tourism Development Act
- Fiscal Incentives Act.
Amendments to the tax laws are made each year with the passing of the National Budget
and Finance Act. Generally, the legislation requires voluntary compliance.
1 0 .1 .3 . Powers of The Board of Inland Revenue
The Board of Inland Revenue has wide statutory powers including:
°
To request all such information as is required in order to be satisfied that the
taxpayer has fully complied with the law.
°
To enter the taxpayer's premises and carry out searches.
°
To require that books and records are kept for at least 6 years.
°
To garnishee any amounts which are outstanding after due notice has been
given to the taxpayer.
°
To undertake civil or criminal legal action for any wilful offence or neglect by a
taxpayer.
1 0 .1 .4 . Adminis tration
Tax laws are administered by the Board of Inland Revenue which is headed by a
Chairperson and comprises four commissioners, each dealing with different areas. The
Board is also responsible for the administration of VAT.
The Board of Inland Revenue does not usually give advance rulings on taxation matters.
1 0 .1 .5 . Tax Year
The tax year is the calendar year. The tax year for a business usually corresponds to the
twelve months ending with its accounting year.
Special rules operate on the
commencement and cessation of business and when a company changes its accounting
year-end.
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1 0 .1 .6 . Tax Returns
From income year 2001, individuals who are in receipt of emolument income only, need not
file income tax returns. However, for all other persons a tax return must be submitted, on
a form issued by the Board of Inland Revenue, by 30 April of the year following that in
which the business accounting year ends. There is no statutory requirement for the
financial statements accompanying the return to be audited. They must, however, be
prepared on an accruals basis. Any other basis would require the approval of the Board
of Inland Revenue. Books and records must be kept in English, maintained in Trinidad
and Tobago, in Trinidad and Tobago currency.
1 0 .1 .7 . As s es s ment and Audit
Upon receipt of a tax return, the Board of Inland Revenue is required by the tax legislation
to raise an assessment as soon as possible thereafter. The Board is not bound by a
return or information supplied by the taxpayer in making an assessment.
In practice the Board of Inland Revenue takes between 12 to 24 months to make an
assessment. Frequently, as a matter of practice, the Board selects returns for audit after
the assessment notice has been issued. Where as a result of the audit or otherwise, at
any time within 6 years of the end of a particular year of income or 3 years from the date
on which the return was filed whichever is the later, it appears, to the Board that the
taxpayer has not been properly assessed, the Board may make an additional assessment
to reflect the amount which in the judgement of the Board ought to have been charged.
Where a taxpayer fails to submit a return the, Board is empowered to make an assessment
based on any information in its possession on a best estimate basis.
1 0 .1 .8 . Dis putes and Appeals
If an assessment is disputed, a company may object in writing within 15 days of the
service of the notice of assessment. The Board of Inland Revenue has two years in
which to determine the objection, otherwise it is deemed to be determined in the
taxpayer’s favour.
When an objection is disallowed, the company may, within 28 days of being notified of
this decision by the Board of Inland Revenue, lodge an appeal with the Registrar of the
Appeal Board. The Appeal Board is a superior court of record, and accountants may not
represent their clients before it. Appeals are heard in camera, and the burden of proof
rests with the appellant. Decisions of the Appeal Board are final on questions of fact, but
an appeal can be made to the Court of Appeal and, thereafter, to the Privy Council on
questions of law.
Any tax which becomes payable following the determination of an appeal must be paid
within 30 days of the Appeal Board's decision.
There are no special commissioners to act as a buffer between the Board of Inland
Revenue, the taxpayer, and the Appeal Court, and litigation is expensive. The amount of
tax in dispute is therefore relevant when deciding what action to take in any disagreement
with the Board of Inland Revenue.
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1 0 .1 .9 . Penalties and Interes t
When any taxes are not paid by the due date through the taxpayer’s default, interest is
charged on the overdue amounts, at 20 percent per annum. Interest on overdue tax is not
a deductible expense in arriving at taxable income.
1 0 .2 .
Corporate Taxes
1 0 .2 .1 . Res ident Companies
A resident company is liable to taxation on its worldwide income (including short-term
capital gains). A company in this context is any corporate body or unincorporated
association but does not include a partnership. A company is considered to be resident
in Trinidad and Tobago if its "central management and control" is ordinarily situated
there. Whether this test is satisfied is determined by the facts in each case. The place of
incorporation is irrelevant.
1 0 .2 .2 . Non-res ident Companies
A non-resident company is liable to tax only on income arising in or derived from Trinidad
and Tobago, including the continental shelf and the exclusive economic zone. The
question of where income arises or is derived from sometimes poses a problem as source
of income is not defined.
If the company carries on a trade or business in Trinidad and Tobago, the tax applying to
its Trinidad and Tobago-source income (whether or not directly connected with the
business) is corporation tax or business levy whichever is higher. Companies in the first 3
years following commencement of business are exempt from business levy. A company is
automatically deemed to be carrying on a trade or business in Trinidad and Tobago if it
has an office, place of business, branch, or agency there. Branch profits (after deducting
corporation tax) are subject also to a withholding tax, unless reinvested to the satisfaction
of the Board of Inland Revenue otherwise than in the replacement of fixed assets.
Dividends paid to a non-resident company are subject to a final (definitive) withholding
tax.
If the company does not carry on a trade or business in Trinidad and Tobago, its tax
liability on local-source income is settled by final withholding taxes (see Withholding
Taxes). Corporation tax does not apply.
The rules described above may be modified by double taxation agreements (tax treaties).
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1 0 .2 .3 . Clos e Companies
Special rules exist for close companies, which may be broadly defined as companies under
the control of their directors or under the control of five or fewer persons. In principle,
the Board of Inland Revenue may direct a close company to distribute as dividends any
profits that are not required for the current needs and future development of the business
and that may be distributed without detriment to the company's existing business. In
practice, since the marginal rate of income tax and the rate of corporation tax are the same,
the Board of Inland Revenue rarely invokes the provision of the Act relating to Close
Companies’ distributions. In addition, various types of payments made by a close
company to its directors and shareholders may be regarded as distributions of profit
rather than as deductible expenses (see Distributions).
1 0 .2 .4 . Tax Treatment of Partners hips
A partnership is not a chargeable entity for income tax purposes, although a partnership
return must be filed showing the allocation of the partnership profit or loss among the
partners. Each partner is liable for income tax on his own share of the profit.
1 0 .2 .5 . J oint Ventures
A joint venture is treated in the same way as a partnership for tax purposes. Companies
wishing to cooperate in some joint activity must use a joint venture as they are not
permitted by law to enter into partnerships.
1 0 .2 .6 . Taxable Income and Allowable Deductions
The taxable income of a resident company is all its income (including short-term capital
gains) wherever arising and whether or not remitted to Trinidad and Tobago, after
deducting exempt income and allowable expenses and outgoings.
Dividends
Dividends received from a resident company, other than preference dividends on shares
issued before 31 January 1966, are exempt from corporation tax.
Dividends received by a resident company from a non-resident company are included in
income subject to corporation tax gross of any foreign withholding tax that may have been
deducted. A credit for the withholding tax and, in some circumstances, foreign tax on the
profits out of which the dividend was paid may be available against corporation tax
payable on the dividend (see Double Taxation Relief and Tax Treaties).
Capital Gains
Profits from the disposal of fixed assets are subject to corporation tax only to the extent
that they represent a recovery of tax depreciation allowances previously deducted or
where the profit is a short-term capital gain.
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A short-term capital gain is a gain, broadly computed as the excess of proceeds over cost,
on the disposal of an asset within 12 months of its acquisition or the reacquisition within
12 months of disposal. Only short-term capital gains (e.g. from the disposal of real estate)
are taxable. A short-term capital loss may be set off only against short-term capital gains
arising in the same year or in subsequent years. It may not be set off against other
income, and other losses may not be set off against short-term capital gains. Capital
gains (including short-term gains) on securities are exempt, and capital gains on assets
held more than one year are also exempt.
Inventory Valuation
Inventories are generally valued at the lower of cost, on the first-in, first-out basis, and net
realisable value. The “last-in, first-out” method is not acceptable. However, any method
of inventory valuation that accords with generally accepted accounting principles and
that is consistently applied will be acceptable.
Exempt Income
Apart from dividends received from resident companies and exempt capital gains, exempt
income also includes income exempted under tax incentive legislation such as the Fiscal
Incentives Act 1979 (described earlier under Tax Incentives) and income exempted under
tax treaties.
Exchange Fluctuations
The accounting treatment of exchange gains and losses is normally in accordance with
that recommended by International Accounting Standard 21. Gains or losses on long-term
assets and liabilities are usually treated as capital items, neither allowed as a deduction
nor taxable in the current tax computation.
Allowable Deductions
Expenses and outgoings must be wholly and exclusively incurred in the production of the
company's income in order to be deductible.
Depreciation
Depreciation charged in the annual financial statements is not deductible for taxation
purposes. It is replaced in the computation of taxable income by initial and annual wear
and tear allowances. The rates of annual wear and tear allowances are set out in the
seventh schedule of the income tax act. Broadly, they are intended to recover the cost of
the over its useful life.
Wear and tear allowances must be calculated on the reducing balance basis on actual
cost, except for private motor vehicles, the cost of which is limited to TT$100,000.
Indexation for inflation is not permitted.
Machinery and Equipment
This category includes not only manufacturing machinery and equipment but also such
items as office equipment, furniture, fixtures and fittings, vehicles and ships.
Manufacturing companies are, under the Income Tax (In Aid of Industry) Act, entitled to
an initial allowance of 60 percent of cost for machinery and equipment in the year of
acquisition. For companies engaged in the production of petroleum, petrochemicals, or
sugar the rate of allowance is 20 percent. All companies carrying on a trade, business, or
profession are entitled to annual wear and tear allowances on their machinery and
equipment, calculated according to the declining-balance method. In the first year, the
initial and annual allowances are calculated on cost. Thereafter, annual allowances are
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calculated on the balance of cost after deducting the allowances previously granted.
With effect from 1st January, 1995 additions to fixed assets will be pooled in various
categories.
The rates of annual wear and tear allowances are set out in the legislation from January 1,
1995 on the reducing balance basis:Class
A
B
C
D
Rate
10%
25%
33.3%
40%
The seventh schedule to the Income Tax Act details the assets that fall into each class.
Very broadly the classes are:A
Furniture
B
Plant and machinery
C
Heavy equipment and computers
D
Aircraft
Industrial Buildings
Manufacturing Companies, under the provisions of the Income Tax (In Aid of Industry)
Act are entitled to a 10 percent initial allowance and a 2 percent annual wear and tear
allowance for expenditure on new industrial buildings and structures. In the case of
petroleum operations, the rate of the annual allowance is 5 percent. The annual allowance
is calculated on the basis of cost before deducting the initial allowance, using the straightline method. Industrial buildings include factories, warehouses, and housing for workers
as well as other buildings provided for their welfare, such as sports pavilions.
The purchaser of a second-hand industrial building cannot claim an initial allowance. A
straight-line annual allowance is given instead, for the remaining assumed life of the
building, on its price to the purchaser or an amount equal to the original cost when new, if
this is less.
If the business carried on by a company is not that of manufacturing, only buildings that
are used exclusively for housing machinery and equipment used in the company's
business qualify for wear and tear allowance. An annual allowance is granted in this case
of 2 percent, using the straight-line method, or 5 percent, using the declining balance
method. No initial allowance is available.
With effect from January 1, 1995 newly constructed buildings used in the production of
income (i.e. industrial and commercial and rental properties) will receive a 10% wear and
tear allowance using the declining balance method.
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Land
The cost of land is not depreciable for tax purposes.
Intangibles
Expenditure on acquiring patent rights, trademarks, and goodwill must be capitalised.
Only manufacturing companies subject to the provisions of the Income Tax (In Aid of
Industry) Act may depreciate such expenditure for tax purposes.
Research and
development expenditure is deductible in the year in which it is incurred, whatever the
type of business, although very substantial expenditures may be written off over a longer
period.
Balancing Allowance or Charge
If an asset that has qualified for tax wear and tear allowances is sold at a price less than its
tax written-down value, a balancing allowance is deductible equal to the deficiency. Tax
written-down value is the initial cost of the asset less tax wear and tear allowances, but
not investment allowances, previously deducted. Conversely, if disposal proceeds
exceed the tax written-down value, the excess (called a balancing charge), up to the
amount of the tax depreciation allowances previously deducted, is taxed as part of the
profit for the year. Where machinery and equipment is replaced, a balancing charge
arising on the sale of the original assets may be deducted from the tax-depreciable cost of
the replacement assets instead of being taxed in the year in which it arises. No balancing
charge may be deemed to arise on the disposal of an industrial building if it has been used
for more than 50 years.
When an asset is transferred between affiliated companies, balancing allowances and
charges may be avoided if both companies make an appropriate election (see Groups of
Companies).
With effect from January 1, 1995 assets are pooled (see machinery and equipment) into
categories. Proceeds on sale of or money received by way of insurance or compensation
for pooled assets are deducted from the tax written-down value of the pool. A balancing
allowance or charge is made only when the pooled assets are fully written-down.
Revaluation of Assets
A revaluation of fixed assets has no tax consequences. The surplus on revaluation is not
taxable, and tax wear and tear allowances continue to be calculated on the basis of original
cost, not enhanced asset values.
Taxes
Rates (real estate tax) are deductible. Corporation tax, business levy and green fund levy
are not deductible, nor are foreign income taxes except to the extent that they exceed the
limit for credit relief under the unilateral provisions of a tax treaty.
Formation and Start-up costs
These costs are not tax deductible.
Interest
There is no general definition of interest in Trinidad and Tobago’s tax legislation. The
meaning assigned the meaning assigned to the term is that applied under English common
law. In general interest income received by resident individuals and corporate bodies from
whatever source, local or foreign is taxable.
In the case of non-residents, only income
received in or remitted to Trinidad and Tobago is subject to tax.
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Interest paid on funds borrowed and used in the production of income is not deductible
for tax purposes unless the resident is chargeable to tax in Trinidad and Tobago or is
exempt under the Income Tax Act or other written law.
Interest received by a resident individual on all classes of saving or other accounts with
banks, financial institutions or other forms or deposit-taking institutions is subject to tax
deducted at source at a rate of 5%. No further tax is payable thereafter. Exemption from tax
is granted to individuals aged 60 years and over.
Interest paid from Trinidad and Tobago sources to a non-resident is subject to
withholding tax at a rate of 20%, unless a lower rate is applicable under double taxation
agreement
Where withholding tax taxes apply, such income is not charged to income and
corporation taxes.
Exemptions from tax available to residents in respect of interest income are as follows:
1)
2)
3)
4)
5)
6)
interest on bonds issued by the Industrial Development Corporation for the purpose
of financing a business restoration facility;
interest on bonds issued by the Development Finance Limited;
interest on bank accounts and bonds payable to resident individuals who have
attained the age of sixty years;
interest on TTDFC Industrial Bonds issued by the Trinidad and Tobago
Development Finance Co Ltd;
fifty percent of the interest earned by a financial institution on loans to an approved
small company;
fifty percent of the interest earned by a financial institution in respect of certain loans
to a who caries commercial farming.
Royalties
Royalties in Trinidad and Tobago may be defined as “amo unts paid as a consideration for
the use of or the right to use” intellectual property rights or mineral rights. Intellectual
property includes “copyrights, works of artistic or scientific expression, patents, design,
plans, secret processes or formulae, trade marks, motion picture films or tapes for radio or
television broadcasting” or other similar properties; or, information concerning industrial,
commercial or scientific knowledge experience or skill”. Mineral rights are those in relation
to exploration and exploitation of natural resources and the operation of mines and
quarries.
Royalty income derived by a resident individual or corporate body is assessable to
income or corporation tax, as the case may be.
Royalties paid to non-resident individuals and companies are subject to withholding tax at
the standard rate of 20% unless a lower rate is applicable under a double taxation relief
treaty.
Management Charges
In the case of management charges paid to a non-resident company or person, the
deductible amount is normally restricted to the amount of those charges or 1 percent of
the paying company's total outgoings and expenses (excluding the management charges
and tax wear and tear allowances), whichever is less. The withholding tax due on such
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management charges must also have been paid to obtain any deduction.
There are no specific limitations on intercompany management charges when both
companies are resident, although the Board of Inland Revenue has power to disregard
what it considers to be artificial transactions.
Bad and Doubtful Debts
Bad debts actually written off and specific provisions against doubtful debts are
deductible provided that the debts concerned arise from the company's trade.
Subsequent recoveries are taxed as income in the year of receipt. Loans are not generally
regarded as debts arising from a company's trade except in the case of financial
institutions such as banks.
General provisions, as a percentage of accounts receivable or in any other form, are not
deductible.
Tax-free Reserves
Reserves arising from the revaluation of fixed assets are tax free, as indicated earlier under
Depreciation, but are not readily distributable. Otherwise, transfers to tax-free reserves
are not generally permitted, with a few exceptions for particular industries such as the
hotel industry.
Repairs and Maintenance
Provisions for expenditure on the maintenance of buildings, machinery, and equipment are
not deductible. Such expenditure is deductible when incurred.
Employees' Remuneration
There are no statutory limits on the amount of remuneration that may be paid to
employees. Payments to an employees' profit-sharing plan approved by the Board of
Inland Revenue are deductible. The Board may not approve such plans unless they meet
a number of specific requirements. Employers' contributions to an approved pension
fund for employees and the state social security scheme are deductible.
From January 1, 1997 Companies will be allowed a special employment allowance of 200%
of wages actually paid to each additional worker employed at a rate not exceeding $4000
per month.
From January 2001 companies will be allowed an apprenticeship allowance of 200% of the
amount paid to an apprentice under an approved apprenticeship scheme.
Arts / Culture / Sports / Media
Generally companies will be allowed 150% of expenses incurred up to $450,000 in
promoting arts, culture and sport or for the sponsorship of audio, visual or video
productions.
Legal Expenses
Legal expenses relating to operating matters, such as the recovery of debts and wage
disputes, are fully deductible. Expenses relating to matters of a capital nature, such as
company formation, issues of share capital, and transfers of real estate, are not tax
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Charitable Donations
Donations are deductible only if made under binding Deeds of Covenant. Qualifying
donations are deductible in aggregate up to a limit equal to 15 percent of the company's
annual income. Charitable covenants are not allowed from January 1, 1997 as a deduction
for individual’s income tax.
Business Rents
These are deductible.
Entertainment
Expenses for entertainment and business meals are 75 percent deductible.
Transactions with Related Parties
When business transactions between a non-resident company and a resident company
over which it exercises substantial control have been so arranged that the resident
company earns no profit from the transactions concerned or less than it might normally be
expected to earn, the Board of Inland Revenue may disregard the transaction and may tax
the parties according to its best judgement. The tax is collected from the resident
company as if it were an agent of the non-resident company.
The Board also has a general power to disregard any artificial or fictitious transactions
that reduce the amount of tax payable by any person and to assess the parties involved
accordingly.
Distributions
In general, distributions are never deductible in computing taxable income. Dividends
payable or paid are the main example of distributions. Exceptionally, preference dividends
paid on shares issued before 31 January 1966 are deductible. Other examples of
distributions include interest paid on securities issued to a non-resident parent or fellow
subsidiary company (subject to double taxation agreement provisions) and interest paid
on securities at more than a reasonable commercial rate or at a rate varying according to
the company's results.
A parent company in this context is one owning directly or indirectly at least half of the
paying company's share capital or voting power.
In the case of a close company (as defined earlier under Basic Principles), interest paid to
a shareholder who is also a director is treated as a distribution unless he is a full-time
executive director and his shareholding is 5 percent or less. Directors' remuneration in the
form of fees is treated as a distribution to the extent it exceeds prescribed limits.
Directors' remuneration, whether paid as fees or executive salary, is treated similarly if it
exceeds an amount considered fair and reasonable by the Board of Inland Revenue.
1 0 .2 .7 . Tax Treatment of Los s es
For corporation tax purposes, a company's ordinary trading losses may be carried forward
and set off against the first available future profits (excluding short-term capital gains),
without time limit. Losses may not be carried back.
Special rules apply to short-term capital losses as explained earlier under Capital Gains.
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Unrelieved losses of one company may not be transferred to, and carried forward by,
another company in the case of a corporate reorganization. There are rules, however, as
in some countries, preventing a company from carrying forward its own losses after
ownership of the majority of its shares changes hands, unless approved by the Board of
Inland Revenue as not being for the purpose of avoiding tax.
1 0 .2 .8 . Groups of Companies
From January 1, 1997 a limited form of group relief has been introduced allowing 100%
subsidiaries within a group to surrender losses to the parent or fellow subsidiary.
However the company receiving group relief must still pay 75% of the taxes it would have
paid without group relief.
For tax purposes, when fixed assets are transferred between affiliated companies,
generally they will be deemed to be sold at their open market value if this differs from the
actual sale price. However, in order to eliminate a potential balancing charge, a transfer
between affiliated companies may be deemed to take place at the tax written-down value,
provided the transferor and transferee company jointly elect for this treatment in writing to
the Board of Inland Revenue. This election does not affect the computation of short-term
capital gains.
1 0 .2 .9 . Taxation of Branches of Foreig n Companies
The taxable profits of a branch of a foreign company in Trinidad and Tobago are
computed in generally the same manner as those of a locally incorporated company.
However, charges from a head office abroad to its branch for interest, royalties, and the
like will not be deductible unless the charges are for payments actually made to third
parties that can be related to the branch.
Some tax incentives, such as the tax holiday for approved enterprises under the Fiscal
Incentives Act 1979, are available only to a locally incorporated company and not to a
branch. The profits of a branch are automatically subject to withholding tax unless
reinvested to the satisfaction of the Board of Inland Revenue, whereas those of a locally
incorporated company are subject to withholding tax only if actually remitted abroad as
dividends.
1 0 .2 .1 0 . Corporate Tax Rates
The standard rate of corporation tax is 30% percent. Certain companies engaged in the
liquefaction of natural gas, manufacture of petrochemicals and petroleum marketing are
chargeable to tax at 35%. The rate of tax is 55 % for oil companies for production and
refining business (not marketing), comprising petroleum profits tax at 50% and
unemployment levy at 5%.
Investment income derived by an insurance company from investments of the statutory
fund required for long-term insurance business is subject to corporation tax at 15 percent.
Profits transferred to the shareholders' account after an actuarial valuation are taxed at the
standard rate.
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1 0 .2 .1 1 Bus ines s Levy
The business levy is payable at the rate of 0.2% on gross sales or receipts for the calendar
year of a company or business. The business levy is calculated quarterly on the actual
sales of each quarter, any adjustment is taken up in the succeeding quarter.
The following are exempt from the business levy:(a)
companies during the first three years following their commencement of
business;
(b)
companies or statutory corporations exempt from corporation tax under any Act;
(c)
the gross sales or receipts of a company which give rise to profits exempt from
corporation tax under an Act;
(d)
the Deposit Insurance Corporation, the Agricultural Development Bank, the
Public Transport Service Corporation and public utilities under the jurisdiction of
the Public Utilities Commission or exempted by order of the President;
(e)
companies that are subject to tax under the Petroleum Taxes Act;
(f)
the gross sales or receipts of a company whose gross sales or receipts in the
preceding year of income do not exceed the sum of two hundred thousand
dollars, unless there are reasonable grounds to believe that the gross sales or
receipts of the company in the particular year will exceed that sum.
A company is entitled to tax credit against its business levy liability for a year of income
of any payment made in respect of its corporation tax liability for that year of income up to
a maximum of its business levy liability. The effect of this provision is that in the majority
of cases businesses will be exposed only to making payments of Corporation Tax.
No deductions are allowed for business levy purposes in respect of prior year losses, or
wear and tear allowances, the levy is, as stated above, calculated on the gross sales or
receipts of a business.
The business levy also applies to individuals where similar provisions apply in respect of
Income Tax.
1 0 .2 .1 2 The Green Fund Levy
The Green Fund Levy is payable at the rate of 0.1% of the actual gross sales and receipts
generated for the calendar year. It is calculated and must be remitted to the BIR on a
quarterly basis. It applies to all companies including petroleum companies and to
unincorporated associations and partnerships. There are no exclusions from the meaning
of gross sales and receipts and there are no exemptions from this levy. Its scope appears
to be much wider that the business levy as it includes all receipts including capital
receipts.
The Green Fund Levy is not allowable as a deduction or tax credit.
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1 0 .2 .1 3 . Reorg anizations
No provisions exist that permit assets to be transferred tax free between companies in the
course of a corporate reorganization or losses to be transferred between the companies
involved. Relief from stamp duty is available when not less than 90 percent of the issued
share capital of one company is being acquired and the consideration is not less than 90
percent of the shares of the other company.
Apart from companies listed on the Trinidad and Tobago Stock Exchange current law with
one exception does not provide guidance on the subject of mergers and acquisitions. The
Companies Act contains provisions facilitating amalgamation of companies. Dissenting
shareholders have a right of recourse to the Court to protect their rights.
The listing agreement of the Trinidad and Tobago Stock Exchange provides those
companies which are listed on the Exchange are bound by the terms of its Takeover and
Merger Code. Under the Code, controlling interest is deemed a holding, or aggregate
holdings, of shares carrying 30% or more of the voting rights of a company. Where an
acquisition of shares in a listed company results in a person (corporate or individual), or a
person together with others in concert, holding an aggregate of 30% or more of the voting
rights, then such a person or persons have an obligation to extend an offer to purchase
the remaining shareholding.
Offers made under this Code are conditional upon the offeror having received
acceptances in respect of shares that, together with shares acquired or agreed to be
acquired before or during the offer, will result in the offeror holding shares carrying in
excess of 50% of the voting rights. An offer is unconditional where the offeror and the
persons acting in concert with him together with him already hold in excess of 50% of the
shareholding.
Where a “take-over” bid is accepted by 90% of the shareholding within four months of
the offer, the offeror may, at any time within the following two months, acquire any of the
shares not already held. A dissenting shareholder has the right to file an objection in the
Court within one month of notification by the offeror of his intention to acquire his
shareholding.
Any offer must be initially be open for at least 28 days after publication of the notice of
offer, and if revised, must be kept open for at least 14 days from the date of notification of
the revision to shareholders.
Under the Foreign Investment Act 1990, the total aggregate shareholding in a public
company which may be held in by foreign investors is 30%. Any acquisition of the shares
by a foreign investor, which will take such a shareholding over the 10% limit will first
require the issue of a license to do so. A foreign investor who wishes to acquire shares in
a private company or to incorporate a private company, shall prior to doing so supply the
Minister of Finance with certain prescribed information which inter alia include the
investors name, address and nationally and particulars of the consideration.
The Stock Exchange Take Over Code provides that the persons privy to confidential
price-sensitive information concerning an offer or contemplated offer should not engage
in dealings during the period when an offer is contemplated and prior to the
announcement of the actual offer. Other than this restriction, parties are free to deal on
the Stock Exchange subject to daily disclosure requirements.
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X. Th e Ta x S ystem
1 0 .2 .1 4 . Payment of tax
Corporation tax is payable quarterly in advance during each tax year based on the taxes
payable for the previous year. Business Levy is payable on the gross sales or receipts of
each quarter. The balance of tax due, if any, must be paid by 30 April of the year following
the tax year, that is, by the same due date for filing the return. A company must ensure
that at least the prior year plus 80% of any increase is settled by quarterly instalments to
avoid interest.
Underpaid instalments and late payments are subject to interest at 20% per annum which
is not tax deductible.
1 0 .3 .
Withholding Taxes
1 0 .3 .1 . Dividends
A final (definitive) withholding tax is levied on dividends paid to non-residents, whether
individuals or companies. Generally the rate is 10-20%, but dividends paid to a company
owning 50 percent or more of the voting power of the company paying the dividends are
subject to withholding tax at 10%.
Under the CARICOM double taxation relief treaty, no withholding tax is levied on
dividends paid to companies and individuals resident in specified Caribbean countries,
subject to various conditions. Tax treaties also reduce or eliminate the withholding tax on
dividends paid to non-residents.
Dividends paid to resident individuals by resident companies who have been subject to
Corporation tax are exempt from income tax in the hands of the resident individual.
1 0 .3 .2 . Branch Profits
Branch profits are liable to both corporation and withholding taxes. Withholding tax is
payable on the taxable profits of the branch whether or not remitted to the head office, a
deduction being allowed in respect of corporation tax paid and any profits reinvested in
additional fixed assets in Trinidad and Tobago. Branch profits remitted or deemed to be
remitted to the head office are subject generally to corporation tax and 10% withholding
tax at the prescribed rates.
A branch in Trinidad and Tobago of a non-resident company mu st withhold tax at 10
percent from profits remitted or deemed to be remitted abroad unless a lower rate is
prescribed by a tax treaty. All profits of a branch (after deducting corporation tax) are
deemed to be remitted unless reinvested to the satisfaction of the Board of Inland
Revenue otherwise than in the replacement of fixed assets.
1 0 .3 .3 . Interes t
Interest paid to non-residents not carrying on a trade or business in Trinidad and Tobago
is subject to a final withholding tax of 20 percent when paid to a company or when paid to
an individual. Tax treaties usually reduce these rates. If interest is treated as a
distribution of profits, as described earlier under Distributions, the withholding rates for
dividends apply.
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X. Th e Ta x S ystem
There is no withholding tax on interest paid to resident companies. A 5% withholding tax
is deducted by banks from interest to individuals who will then be exempt from further tax.
The tax does not apply to persons who are aged 60 years or over.
1 0 .3 .4 . Other Payments
Several other types of payment made to non-residents not carrying on a trade or business
in Trinidad and Tobago are subject to a withholding tax of between 10 percent – 20
percent when paid to a company or when paid to an individual. Tax treaties may reduce
or eliminate the tax.
The payments concerned include:
°
Royalties.
°
Management charges (including charges for the provision of personal
services and technical and managerial skills).
°
Rentals for real estate and other property.
°
Annuities.
°
Premiums (other than those paid to insurance companies), commissions, fees and
licences.
°
Discounts
°
And any other payments as may be prescribed
No withholding tax is levied on such payments when they are made to residents.
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X. Th e Ta x S ystem
Table 10.3.4.1
Withholding Tax Rates
WITHHOLDING TAX RATES
Types of Payments/
Distributions
Non
Treaty
Effective Date of Entry
Dividends
- Corporate recipient >
10% s/holding
- Corporate recipient >
25% s/holding
- Other
Caricom
Canada
Denmark
France
Germany
1994
1996
1969
1987
1976
0%
5%
15%
15%
10%
20%
15%
10%
15%
10%
20%
Royalties
20%
15%
10%
15%
10%
Management Fees/Charges
20%
15%
10%
5%
10%
1971
1969
Sweden Switzerland
1984
1973
USA
Venezuela
1983
1971
1997
10%
10%
20%
10%
10%
20%
10%
20%
10%
15%
10%
15%
10%
10%
20%
20%
10%
20%
5%
10%
10%
10%
5%
15%
20%
5%
5%
12.5%
10%
10%
15%
15%
10%
15%
10%
5%
10%
10%
10%
8%
These rates are intended to be used as a guideline ONLY. Reference should always
be made to the specific provisions of the Treaty. It is advisable to consult with your
professional advisors on any issue where withholding taxes may be applicable
Guide to Investing in Trinidad & Tobago
5%
10%
10%
15%
10%
0%
United
Kingdom
10%
Technical Fees
NOTE:-
Norway
10%
Interest
- Recipient a Bank
- Other
Branch Profits
1999
Italy
10%
10%
15%
India
109
10%
10%
10%
10%
10%
5%
X. Th e Ta x S ystem
Notes
1
2
3
4
5
6
Taxable in country where contract executed, if no contract, taxable at withholding tax rate in paying
country
Various rules apply to salaries and other personal income items –see treaties for details
Where the treaty rate exceeds the domestic, (all other country), rate the domestic rate will apply
Special rules apply between public, (government owned), institutions
The above tabulation is for guidance only- reference MUST be made to the appropriate treaty.
The treaty reads “Where a company which is a resident of a Contracting State derives profits or
income from the other Contracting State, that other State may not impose any tax on the dividends
paid by the company, except insofar as such dividends are paid to a resident of that other State or
insofar as the holding in respect of which the dividends are paid is effectively connected with a
permanent establishment or a fixed base situated in that other State, nor subject the company’s
undistributed profits to a tax on undistributed profits, even if the dividends paid out of the
undistributed profits consist wholly or partly of profits or income arising in such other State.”
Notes To Schedule Of Withholding Tax Rates
I.
II.
III.
IV.
V.
VI.
Royalties paid to U.S. resident companies in respect of FILMS are subject to withholding tax at the rate of
10.032%.
Certain pensions in respect of past services are not subject to withholding tax.
Payments for independent personal services made to residents of certain countries are exempt from
withholding tax provided certain conditions are met - refer to Double Taxation Relief Orders for details.
Management charges paid to U.S. resident companies are not subject to withholding tax if the recipient
does not have a permanent place of business in Trinidad and Tobago - if the recipient has a permanent
place of business, corporation tax would apply.
Rents for movable property paid to U.S. resident companies or individuals are not subject to withholding
tax if the recipient does not have a permanent place of business in Trinidad and Tobago.
The exemption from withholding tax does not apply to -
(a) any fixed preference divided in respect of preference shares issued by a Trinidad company
(b)
prior to 31st January 1966; and
dividends paid out of profits on which no income or corporation tax, as appropriate, has been
suffered.
In these instances the withholding tax rate is 15%.
VII.
CARICOM COUNTRIES:
Barbados
Belize
Grenada
St. Kitts/Nevis
Antigua & Barbuda
Guyana
Montserrat
CARICOM Treaty Ratified
Jamaica
St. Lucia
Dominica
St. Vincent & the Grenadines
CARICOM Treaty not signed
Suriname
VIII. Withholding tax applicable to income derived form Puerto Rico Section 936 Fund Investments is reduced
from 20% to 0.001% by Order dated 28th March, 1990. Legal Notice No. 64 of 1990.
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X. Th e Ta x S ystem
1 0 .3 .5 . S alaries and Wag es
Under the pay-as-you-earn (PAYE) scheme, all employers in Trinidad and Tobago must
withhold tax from salaries and wages paid to their employees and pay the tax withheld to
the Board of Inland Revenue. Tax is withheld in accordance with tax tables at the
graduated rates shown under Personal Tax Rates. In the case of payments to residents,
the tables take into account the personal allowances and deductions due to the
employees concerned. Tax withheld under the PAYE scheme is set off against the
employee's tax liability for the year in question, any excess being refunded.
1 0 .3 .6 . Collection of Tax and Penalties
Withholding taxes on payments of dividends, interest, and the like must be paid to the
Board of Inland Revenue within 30 days of the payments being made or credited. Tax
withheld from salaries and wages under the PAYE scheme must be paid by the fifteenth
day of the month following that in which the remuneration was paid. If withholding taxes
and PAYE deductions are not paid by the due date, a penalty of 100 percent is levied, plus
interest at 20 percent per year. From May 1, 2001, that is the expiration of the amnesty, the
rate of penalty and interest has been increased to 100% and 20 % respectively.
Neither the penalty nor the interest is a deductible expense in computing taxable income.
1 0 .4 .
Double Taxation Relief and Tax Treaties
1 0 .4 .1 . Unilateral Relief
If a resident of Trinidad and Tobago derives income from a foreign country that has not
concluded a tax treaty with Trinidad and Tobago and that income is subject to corporation
tax or income tax in Trinidad and Tobago, a credit is granted for foreign income tax paid on
the income against Trinidad and Tobago tax. The credit is limited to the lesser of the
foreign tax paid on the income concerned or one-quarter of the Trinidad and Tobago tax
attributable to the same income (one-half where the income is derived from prescribed
British Commonwealth countries). Foreign income tax is deductible as an expense to the
extent that it cannot be relieved by way of a credit. In the case of dividends, foreign tax
levied on the profits out of which the dividends were paid (underlying tax) may be taken
into account in computing the credit if the recipient is a locally resident company owning
at least 50 percent of the shares of the paying company.
Credit relief is given for foreign income taxes levied at national level only and not for
provincial or lower level taxes.
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X. Th e Ta x S ystem
1 0 .4 .2 . Tax Treaties
Trinidad and Tobago has concluded double tax treaties with Canada, France, Denmark,
Germany, India, Italy, Norway, Sweden, Switzerland, the United Kingdom, the United
States and Venezuela. It is also party to the 1994 CARICOM tax treaty.
As well as containing provisions to alleviate double taxation, the treaties also provide for
the exchange of information (excluding trade secrets) when this is necessary to implement
the treaty or prevent fraud. Some treaties (notably the UK) will allow tax sparing so that
companies with special exemptions (e.g. Under the Fiscal Incentives Act) are also spared
tax in their country of residence.
1 0 .5 .
Tax Treatment Of S pecific Indus tries
1 0 .5 .1 . Petroleum Operations
Petroleum operations are classified into three separate types of business for tax purposes,
namely:
1.
2.
3.
Exploration and production operations
Refining operations
Marketing operations
The first two types of business are subject to several petroleum profits taxes in place of
corporation tax. The rate is 50 percent. Income subject to Petroleum Profits Tax is also
subject to Unemployment Levy of 5%. Marketing however is subject to corporation tax at
35%. Profits for the purposes of Petroleum Profits Tax are generally computed in the same
way as for corporation tax, but some additional deductions peculiar to the industry are
allowed. These include royalties, the petroleum impost, which is a payment to support
the Ministry of Finance's control of petroleum companies, and the contribution that these
production operations make to marketing companies to subsidise the price of petroleum
products sold to local consumers (the petroleum subsidy). A company carrying on more
than one type of petroleum business may not set off losses incurred in one business
against profits earned in another for the purposes of petroleum profits tax.
Exploration and production operations are subject to a supplemental petroleum tax (SPT)
which is deductible in computing profits for the purposes of petroleum profits taxes. The
rate of this supplemental tax is 15 percent for land operations and 55 percent for marine
operations. It is levied on gross income after special deductions for intangible drilling
costs and, in the case of marine operations, for tangible drilling costs also, as specifically
defined.
As of 1 January 1988 the SPT was revised whereby "base oil" (defined as a company's
average daily production for December 1987 annualis ed over 1987) and "additional oil"
(the excess of a company's actual production over base oil) will attract different rates of
tax. Base oil will be taxed at the old rates, but additional oil will be taxed at 5 percent on
land and 20 percent on marine. Lease operators and farm-outs on land licensed by the
Ministry of Energy will be eligible for the 5 percent SPT and other incentives granted to oil
companies.
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X. Th e Ta x S ystem
As of January 1, 1992 there was a further revision of SPT which provided a new sliding
scale for rates of SPT based on oil prices above US$13 for marine and US$14 for land,
based on the weighted average annual crude oil price.
Refining operations are subject to a refinery throughput tax that is currently levied at
US$0.05 per barrel for full refining and US$0.02 for light refining. Refinery throughput tax
is deductible in computing the profits of a refining business for the purpose of petroleum
profits tax.
1 0 .5 .2 . Touris m Indus try
Enterprises involved in the tourism industry (as owners or operators) or the construction
of dwelling houses may be entitled to tax holidays for varying periods, import duty
concessions, and accelerated depreciation allowances during their taxable years.
Under the act a Hotel refers to a building or group of buildings including the curtilage
therefore and all buildings within the curtilage, occupied together and used to provide the
following services to guests for reward: the supplying of rooms, and of laundry; valet;
restaurant services; facilities for meetings, conventions and sales promotion etc.
The provision of hotel accommodation services is zero-rated for VAT, however, a Hotel
Accommodation Tax of 10% is charged on the full cost of letting the hotel accommodation
and ancillary services. The normal rate of corporation tax applies.
1 0 .5 .3 . Yachting S ervices
The profits are subject to tax in the same manner as described under corporation tax.
The provision of repairs and other services is zero-rated for VAT provided that the yachts
and pleasure craft 2 are owned by persons who are neither citizens nor residents of
Trinidad and Tobago at the time when the repairs and services are performed. Services
include port and harbour services, docking, mooring and conservancy.
1 0 .6 .
Taxes On Individuals
1 0 .6 .1 . Bas ic Principles
An individual who is ordinarily resident and domiciled in Trinidad and Tobago is liable to
income tax on worldwide income (including short-term capital gains), whether or not
remitted to the country. An individual who is ordinarily resident in Trinidad and Tobago
but not domiciled in Trinidad and Tobago is liable to these taxes on income arising in
Trinidad and Tobago and foreign income remitted in Trinidad and Tobago. It is important
to note in this context that income from employment carried on in Trinidad and Tobago is
always treated as income arising in Trinidad and Tobago, whether or not it is received in
Trinidad and Tobago.
If an individual is merely a temporary resident, that is, present in Trinidad and Tobago for
some temporary purpose only and for six months or less in the year, he will not be liable to
tax on income arising abroad even if it is remitted to Trinidad and Tobago.
2
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X. Th e Ta x S ystem
A non-resident individual is liable to tax only on income arising in Trinidad and Tobago
and to other income remitted to in Trinidad and Tobago In many cases his tax liability
will be settled by the final withholding taxes described earlier. A tax treaty may reduce or
eliminate the liability to local income tax or withholding tax.
Neither ordinary residence nor domicile is defined in the tax legislation. However, most
foreign nationals would not normally be considered as domiciled in Trinidad and Tobago.
A husband and wife are taxed as separate individuals on their own respective incomes.
1 0 .6 .2 . Taxable Income
An individual's taxable income is arrived at by aggregating his income from all sources,
including short-term capital gains, and reducing the total by deductible expenses and
personal allowances.
1 0 .6 .3 . Employment Income
All gains or profit derived from an employment exercised in Trinidad and Tobago are
chargeable to income tax at the prescribed rates. Included therein are all emoluments (as
defined) and the value of all benefits and facilities provided by the employer. When an
employee receives a salary net of tax, the tax paid by the employer is also deemed a taxable
benefit.
Income Tax, referred to as PAYE, is deductible at source on a monthly basis and must be
accounted for, to the Board of Inland Revenue by the employer.
Employment income earned by non-residents an by employees who are temporarily
resident in respect of employment exercised in Trinidad and Tobago is subject to income
tax in the normal manner, regardless of where paid, but subject to provisions of any
applicable double taxation treaty. Such income includes all benefits and allowances
derived from the employment including the value of board and lodging provided by the
employer. No tax is payable on income of such persons derived for foreign sources
unless remitted to Trinidad and Tobago,
In addition to basic salary, taxable income includes the benefits commonly provided to
expatriates, such as housing allowances, tax reimbursements, cars, and other benefits in
kind.
1 0 .6 .4 . Dividends
Dividends received by Trinidad and Tobago resident individuals, from resident companies
who have been subject to corporation tax, are exempt from further taxation in the hands of
the resident individual.
Dividends on preference shares issued before 31 January 1966 are treated as interest
(allowed as a deduction to the company) and subject to 10% tax at source.
1 0 .6 .5 . Capital Gains
Short-term capital gains, i.e. gains on assets disposed of within 12 months of acquisition,
as defined earlier under Corporation Taxes, are taxable at the prescribed rate. Gains from
the disposal of securities (including shares), automobiles, and household goods sold for
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114
X. Th e Ta x S ystem
less than $5,000 are exempt. Short-term capital losses may be set off only against shortterm capital gains. Other types of loss may not be set off against short-term capital gains.
Other than short-term capital gains the Trinidad and Tobago Income Tax Act contains no
provisions on the taxation of capital gains, which are not regarded as income for income
tax purposes.
1 0 .6 .6 . Los s Relief
A loss (other than a short-term capital loss), to the extent that it cannot be wholly set off
against the taxpayer's other income (excluding short-term capital gains) in the same year of
assessment, may be carried forward and set off against the income of subsequent years
without time limit. Losses from agriculture, mining, trade or business cannot be offset
against income from a profession or employment income. There is no loss carry-back.
1 0 .6 .7 . Allowable Deductions
Travel Expenses
An employee may deduct only travelling expenses wholly, exclusively, and necessarily
incurred in the course of his employment. An individual who carries on a trade, business,
or profession may deduct expenses wholly and exclusively (though not necessarily)
incurred for the purposes of that activity, as well as tax depreciation allowances.
Mortgage Interest/Tertiary Education and Pensions or Deferred Annuities
The most significant deductible expenses unrelated to the production of employment or
business income are home loan interest up to $18,000 and pension payments up to
$18,000 per taxpayer. The deduction for mortgage interest may also be allowed for tertiary
education expenses at approved universities.
1 0 .6 .8 . Pers onal Allowances
Personal allowances are granted only to residents of Trinidad and Tobago and are not
apportioned, that is, they are granted in full for whatever period of the year is assessable.
These personal allowances are given as a deduction in computing taxable income, not as
credit against tax payable as in some countries. The following allowances are available:
Alimony (if recipient is taxable thereon in Trinidad
and Tobago)
100% of amount paid
Mortgage relief
House purchase allowance
Pension contributions to an approved scheme and
National insurance contribution (70% thereof)
$18,000
$10,000 per annum for each of
the first five years
$18,000
Aggregate Maximum
Personal Allowance for persons 60 years and over
$30,000
All other persons
$25,000
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X. Th e Ta x S ystem
1 0 .6 .9 . Pers onal Tax Rates
The rates of income tax are as follows:Slice of Tax
on Taxable Income
$
0 - 50,000
50,001 - upwards
Rate of Tax
Applicable to Slice
%
25
30
Cumulative
Upper Income Limit
$
12,500
1 0 .6 .1 0 . S pecial Tax Treatment of Foreig n Nationals
No special tax reliefs are generally available to foreign nationals as such under local tax
law. However, as indicated earlier, few foreign nationals are likely to be considered as
domiciled in Trinidad and Tobago. As non-domiciled individuals, they are liable to
Trinidad and Tobago tax on their foreign-source income only if it is remitted to Trinidad
and Tobago.
1 0 .6 .1 1 . Tax Payments , Returns and Appeals
From income year 2001individuals in receipt of emolument income only, need not file
income tax returns. Rules regarding returns, assessments, appeals, and collection of tax
are much the same as for companies. Tax is withheld from employees' pay under the
PAYE scheme described earlier under Withholding Taxes, while self-employed persons
must pay tax in advance in quarterly instalments. For all individuals, however, any
balance of tax due must be paid by 30 April following the year of income.
1 0 .7 .
Other Taxes
1 0 .7 .1 . Cus toms and Excis e Duties
Duties are levied at various rates on a wide range of imported items based on the CIF
values. Customs and excise duties are a significant part of government revenues.
1 0 .7 .2 . S ocial S ecurity Contributions
Social security contributions, known in Trinidad and Tobago as national insurance
contributions, are payable both by employers and employees. For employers the rates
currently range from $5.86 to $45.36 per week, depending on the level of the employee's
earnings. For employees the rates vary from $2.93 to $22.68 per week. In addition,
employees, aged under 60 years, must pay a weekly health surcharge of $4.80 or $8.25,
depending on the amount of their earnings. An employer pays a weekly contribution of
$1, instead of the normal contributions, for an unpaid apprentice or any paid worker under
16 or over 65. This contribution covers employment injury benefit.
1 0 .7 .3 . Value Added Tax (VAT)
There is a Value Added Tax on all imports and supplies of goods and services at the rate
of 15%.
There are certain goods and services which are 'zero-rated' including exports, basic food
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X. Th e Ta x S ystem
items, major farm inputs, prescription drugs, selected over the counter drugs, books, oil
and gas, hotel accommodation and yachting services.
There are certain goods and services that are 'exempted' including land and buildings,
rental of residential property, bus and taxi services, medical, banking, insurance, stock and
real estate brokerage.
Registration is required for any business with commercial supplies in excess of
TT$200,000 per annum. The difference between output tax and input tax is payable
(refundable) for monthly or bi-monthly tax periods. There are substantial penalties for
late (or non) payment, and late (or non) filings.
1 0 .7 .4 . S tamp Duty on Conveyance of Real Es tate
(a)
Residential
Residential property conveyances bear stamp duty at the following rates:$0 - $350,000
Next $100,000
Next $100,000
Above $550,001
(b)
NIL
5%
7.5%
10%
Non-Residential
$0 - $300,000
$300,001 - $400,000
$400,001 +
2% on the whole consideration
5% on the whole consideration
7% on the whole consideration
1 0 .7 .5 . Real Es tate Taxes
Real estate taxes (rates) are levied by local authorities on the assessed value of property
located within their administrative areas. Undeveloped land is taxed at $20 per acre and
buildings at 7 1/2% of the estimated rental value with a minimum of $48.00 (known as the
Annual Rateable Value). There are also water and sewerage charges based on the
assessed annual rateable value or meterage.
1 0 .7 .6 . Road Traffic Licence and Vehicle Trans fer Tax
From January 1, 1997 vehicles no longer have to be licensed annually. A transfer tax is
applied to all motor vehicles that have been sold without VAT (i.e. by individuals or
unregistered businesses) at rates dependent on the age of the vehicle.
1 0 .7 .7 . Betting , Gaming and Lotteries
An annual licence fee of TT$100,000 is charged. In addition, a levy of $400,000, payable
quarterly in advance is charged on betting shops. This levy is then deducted from betting
taxes collected by the betting shops at 10% on all bets placed.
Guide to Investing in Trinidad & Tobago
117
X. Th e Ta x S ystem
1 0 .7 .8 . Ins urance Premium Tax
A tax of 6% is levied on general insurance premiums applicable to risks covered in
Trinidad and Tobago.
1 0 .7 .9 . Hotel Room Tax
A tax of 10% is charged on the value of Hotel accommodation.
Guide to Investing in Trinidad & Tobago
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XI Exp a tria te Livin g / Cu ltu re
XI.
EXPATRIATE LIVING, CULTURE AND TOURIS M
Most of the amenities to which expatriates are accustomed are easily available in Trinidad and Tobago.
1 1 .1 .
Hous ing
Single-family houses are more common in Trinidad and Tobago than townhouses or apartment
buildings; however, in recent times the real estate developers have tended to construct more
apartment complexes and townhouses. These are being provided with full security guard services.
1 1 .2 .
Medical Facilities
Trinidad and Tobago has many well qualified and trained general practitioners and specialists in
obstetrics and gynaecology, paediatrics, radiology, physiotherapy, cardiology, gastrology and
urology, both in private practice, as well as attached to the various health care facilities around the
country.
Most common surgical procedures are performed in Trinidad. 24-hour emergency services are
available at several of the medical facilities around the country. There is also 24 hour Emergency
Air Ambulance available.
1 1 .3 .
S chools
1 1 .3 .1 . The Educational S ys tem
The educational system in Trinidad and Tobago is based on the British System. There are also
schools in Trinidad offering international programmes.
The primary school system serves children from Standard or Prep 1 to 5 (generally from ages 5 to
11). At the end of the 5th year, the Secondary Entrance Assessment Examination is taken. The
results in this examination determine which secondary school a child will attend.
There are various types of secondary schools in Trinidad and Tobago: 7 year; 5 year; Junior
Secondary; Senior Secondary and Senior Comprehensive. The most common is the 7- year school.
At the end of the fifth year of secondary school, students may take the Caribbean Examinations
Council (CXC) examinations in subjects of their choice, providing the school offers those subjects.
Passes in five subjects is the minimum requirement, in most cases, to enter the work force. The
Cambridge General Certificate of Education, Ordinary Level (G.C.E. O’Levels) examinations, which
were the standard examinations taken in Trinidad and Tobago prior to the introduction of CXC, is
still available in some subjects.
After 7 years, The Cambridge or London General Certificate of Education, Advanced Level (G.C.E.
A’Levels) examinations may be taken, usually in 3 or 4 subjects. These exams are required to enter
University and are well recognised internationally.
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XI Exp a tria te Livin g / Cu ltu re
1 1 .3 .2 . Acces s to S chools
In general, access to nursery, primary, Kindergarten and Montessori schools is not difficult since
there are public schools with available space, and several good private schools. Access may
require sitting an entrance examination.
At the secondary level, there are fewer private schools. Access to a public school requires passing
the Secondary Entrance Assessment Examination, and is subject to available space in the school of
first choice. If a place exists, approval has to be obtained from the Ministry of Education.
1 1 .3 .3 . International S chools
Two international schools were open in Trinidad in 1994. Profiles are as follows:
The International School
Foundation:
The International School of Port of Spain (ISPS) was founded in 1994. It is a co-educational, nonprofit corporation, governed by a seven member corporate and parent board. The ISPS is
sponsored by EOG Resources, British Gas, BP Trinidad & Tobago LLC and the US Embassy. The
school is accredited by The Southern Association of Colleges and Schools (USA) and registered
by the Ministry of Education (T&T).
Curriculum:
The International School of Port of Spain offers an international education based upon a US
curriculum model. The language used by the school is English and the academic program meets
the needs of students from the age of 4 - 18. Staff specialists include a College Guidance
Counsellor and Guidance Counsellors. Special curricular activities at the school include Advanced
Placement course work, Foreign Language instruction, Art, Music, Drama, Swimming, Physical
Education and Computer Instruction. Extra curricular activities include, Excursions/field trips,
Model United Nations (MUN), Inter-Island sports exchanges, Soccer, Volleyball, Softball,
Basketball, Community Service and Student Government.
The International School of Port of Spain offers PSAT, SAT, IOWA, COGAT and Advanced
Placement Exams. The school’s library contains 12,000 volumes.
The school’s web site is: http://www.isps.edu.tt
Location:
The school is now located on a relatively new, purpose build facility in Westmoorings. Facilities
comprise air-conditioned and computer-networked buildings with 28 classrooms, 2 computer labs, 3
science labs, a library/media centre, gymnasium, grassed athletic fields and enclosed activity area.
Guide to Investing in Trinidad & Tobago
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XI Exp a tria te Livin g / Cu ltu re
Maple Leaf International School
Maple Leaf International School is a co-educational private school of approximately 500 students
located in Petit Valley, a western suburb of Port of Spain. Founded in 1994 by local parents, the
school provides a first class alternative to the public school system. Maple Leaf International
School offers programmes for children from the age of 4 years to University entrance level and
serves the education needs of national as well as the international community. The school is
accredited by the Ontario, Canada Ministry of Education and graduates receive the Ontario
Secondary School Diploma (OSSD). The staff are all trained and experienced teachers with the
majority holding qualifications in Ontario.
The curriculum foundations are set out by the Ministry of Education in Ontario and incorporate
some of the best research on teaching and learning. The Ontario Curriculum establishes high,
internationally competitive standards of education for elementary and secondary school students.
The curriculum has been designed with the goal of ensuring that graduates from our school are
well prepared to lead satisfying and productive lives as both citizens and individuals, and to
compete successfully in a global economy and a rapidly changing world. Our graduates embark
upon post-secondary programs in Canada, Great Britain, USA and the Caribbean.
For every program offered at the elementary and secondary level, the curriculum outlines clear and
detailed curriculum expectations, that is, the particular knowledge and skills that students are
expected to demonstrate by the end of each course. In addition, for every discipline, it provides
detailed descriptions of achievements levels, which will assist teachers in the assessment and
evaluation of students’ work. The standards curriculum promotes consistency in these practices in
schools across Ontario and by extension at Maple Leaf International School. Our staff endeavour
to deliver the highest quality of instruction and encourage all students to achieve their full
potential in a caring, learning- centered environment.
The school facilities occupy two secure enclosed compounds that include fully air conditioned
buildings incorporating 37 classrooms, including science and computer labs, libraries, art and mu sic
rooms, cafeteria and a covered gymnasium.
1 1 .4 .
Cos t of Living
The inflation rate in Trinidad and Tobago was 4.1% at the end of 2002 and has remained under
11% over the last 10 years. The exchange rate has also remained fairly steady at approximately
US$1.00 = TT$6.30 over the last two years. Prices of a sample of goods in Trinidad and Tobago
follow.
Table 11.4.1
Sample of Prices in Trinidad and Tobago
Items
Chicken (whole)
Beef steak – imported
Fresh fish steaks
Prices in US dollars
$2.40 per kg
$9.80 - $22.00 per kg
$6.00 - $8.75 per kg
Eggs
Milk
Head of Lettuce
$1.39 per dozen
$1.10 per Lit re
$0.53 per unit
Item
Rum(750ml) –local
Beer – local
Scotch Whisky - Johnny
Walker Black
Locally made cigarettes
Imported cigarettes
Cars
-Honda Civic (1.7 F.I.)
-Honda Accord (2.0 F.I.)
Tomatoes (prices vary
depending on season)
$2.60 per kg.
Gasoline
-Leaded
-Unleaded
Pineapple
$1.98 - $2.46 per unit
Rents for Expatriate
Guide to Investing in Trinidad & Tobago
Prices in US dollars
$9.65
$1.09
$31.47
$1.42
$1.90
$27,777.78
$42,069.79
$0.39 per litre
$0.45 per litre
121
XI Exp a tria te Livin g / Cu ltu re
Items
Prices in US dollars
Oranges (prices vary
depending on season)
Orange Juice
Red/ White Table Wine
(750ml)
Item
Housing
-Furnished Executive Apts.
-Furnished Houses
$0.12 - $0.16 per unit
$1.45 per litre
Doctor’s Visit
Prices in US dollars
$1,500-$3,500 per
month
$2,500-$4,800 per
month
$20.00
Visit to Paediatrician
Meals out with glass of wine
$25.00
$40.00 per person
$12.50 - $20.75
Imported alcohol and cars are costly in Trinidad and Tobago mainly as a result of the duties and
taxes imposed on these items. The airport in Trinidad permits both arriving and departing
passengers to purchase alcohol and other luxury goods at duty free prices.
1 1 .5 .
Importing a Car into Trinidad and Tobag o
Licence
A new right hand drive car could be brought into Trinidad and Tobago without an import licence
from the Ministry of Enterprise Development; Foreign Affairs and Tourism Importation of left hand
drive cars is governed by the Customs Act.
Duties and taxes charged when importing a car into Trinidad and Tobago are as follows:
New Passenger Cars
CC Rating
Import Duty
0-1599
1600-1799
1800-1999
2000-2499
2500-2999
3000-3499
Over 3499
25% of CIF
35% of CIF
35% of CIF
40% of CIF
40% of CIF
45% of CIF
45% of CIF
Motor Vehicle Tax CC TT$
NO TAX
$4.00
$8.00
$21.00
$25.00
$30.00
$45.00
Reduction in Motor Vehicle Taxes for Used Vehicles (Imported Assembled), Legislation Not Yet
Passed
Age of Vehicle
> = 1 Yr. & < 2 Yrs.
> = 2 Yrs. & < 3 Yrs.
> = 3 Yrs. & < 4 Yrs.
> = 4 Yrs. & 5 Yrs.
Reduction in Motor Vehicle Tax
Payable for Used Vehicles
10%
25%
50%
75%
Note: Foreign used vehicles are subject to the same motor vehicle tax structure as new vehicles,
but with reductions in the relevant tax being applied according to the age of the vehicle.
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122
XI Exp a tria te Livin g / Cu ltu re
Registration Fee for Locally Assembled Foreign Used Vehicles
CC Rating
1600-1999
2000-2499
2500-2999
<3000
Fee TT$
30,000.00
50,000.00
70,000.00
90,000.00
Note: Fee payable for locally assembled foreign used vehicles is the greater of registration fee or
the applicable motor vehicle tax.
Tax Structure for New Goods Vehicles
Import Duty
Motor Vehicle Tax
10% of CIF
TT$2.50 per CC
Licensing Office
•
The vehicle must also be registered by the Licensing Office:
Upon clearance from Customs and the Board of Inland Revenue, an application can be
made to have the vehicle registered. Prior to registration, there is no authorisation to drive
the vehicle on the road unless the Licensing office has issued a letter granting permission
to do so temporarily. To register, the registration form is completed and the vehicle is
weighed and reviewed for road worthiness and conformity to the Motor Vehicle and Road
Traffic Act. There is a fee for weighing of TT$20.00 (approximately US$3.20) and a fee for
registration of TT$50.00 (approximately US$8.00). A registration number is then issued,
the licence plate made and installed, motor vehicle insurance obtained and the vehicle
reviewed again by the licensing office.
1 1 .6 .
Obtaining a Driver’s Permit
In Trinidad and Tobago, driving is on the left hand side of the road and almost all vehicles are right
hand drive. Under the Motor Vehicle and Road Traffic Act, Chapter 48:50, holders of an
international driving permit may drive without a local permit, up to the expiration date of the
international permit. In addition, holders of a valid driving permit issued in a number of countries,
who are signatories to the Geneva Convention (there are about 100 countries listed) are exempted
for a period of three months, from the requirement to hold a driving permit issued under the Act.
The three month period commences on the date of arrival in Trinidad and Tobago.
To obtain a permit, a written examination on the driving regulations and a practical examination may
be required. If the individual applies for the permit and does the regulations test before the three
month period is up, he or she will be exempt from doing the practical test. If the individual applies
after the three month period, he or she will be required to do both the written and practical tests.
The cost of the written and practical tests is TT$100.00 (approximately US$16.00) each. The fee for
the practical test may be waivered if successful with the regulations examination. If either the
written or practical test is repeated, $100 is applied in each case. The cost to obtain the certificate
of competence is TT$20.00 (approximately US$3.20) and the driver’s permit, which is valid for 3
years, TT$200.00 (approximately US$32.00)
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123
XI Exp a tria te Livin g / Cu ltu re
1 1 .7 .
Animal Quarantine
Dogs and Cats brought into Trinidad and Tobago have to be quarantined for a period of up to 6
months. The purpose of the law is to ensure that the country is kept free from rabies. There are,
however, certain exceptions.
Trinidad and Tobago releases from quarantine, dogs and cats coming from rabies free countries.
These are:
§ Anguilla
§ Antigua
§ Australia
§ Barbados
§ Great Britain
§ Jamaica
§ New Zealand
§ Northern Ireland
§ Republic of Ireland
§ St. Kitts Nevis
§ St. Lucia
Health Certificate
In order to bring pets from any country, the law requires that the dog or cat be accompanied by a
health certificate stating that the animal is in good health, and free from infectious diseases and
that there has been no rabies in that country over the last 6 months prior to exportation. The health
certificate must be issued by a government veterinarian of the country from which the dog or cat
will arrive.
Import Permit
An import permit is also required from the Animal Production and Health division of the Ministry of
Agriculture, Land and Marine Resources in Trinidad and Tobago, prior to the arrival of the pet in
Trinidad and Tobago. This is necessary to ensure accommodation in the Quarantine compound.
1 1 .8 .
Touris m and Leis ure
Apart from the many cultural events held in Trinidad all during the year, there is so much to see
and do in Trinidad and Tobago.
Eco-Tourism
Trinidad has a host of Eco-sites that are easily accessed, such as the world renowned Asa Wright
Nature Centre for bird watchers and naturalists; the Wild Fowl Trust in Pointe-à-Pierre; the Caroni
Swamp and Bird Sanctuary, home of the country’s national bird, the Scarlet Ibis; and beaches
where the endangered leatherback turtles return every year (from March to September) to lay their
eggs. There are also a number of hiking clubs that venture through the Rain Forest to the many
areas that are not so easily accessed by others.
Tobago boasts some of the finest coral reefs (which can be viewed from glass-bottomed boats),
such as the Buccoo Reef, and the most serene waters for the scuba diving enthusiasts.
Sporting Facilities
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XI Exp a tria te Livin g / Cu ltu re
Trinidad has excellent facilities for yachting, boating, golfing, cricket, horse racing, tennis, track
and field, cycling, fitness and aerobics, weight training and football (soccer).
Beaches
Tobago has several white-sand beaches within walking distance from most hotels. In Trinidad,
there is Maracas Bay, Las Cuevas and other beaches along the North coast that are within 25
minutes of Port of Spain.
1 1 .9 .
Cultural Events
The country celebrates many religious and national cultural events throughout the year. The
steelband, calypso music, tassa drums, parang and folk music are all sounds associated with the
rich culture of Trinidad and Tobago including Theater workshops and Plays.
Major cultural events include:
•
•
•
•
•
Carnival in February or March,
Phagwa, a Hindu festival,
Hosay, a Muslim festival,
Tobago’s Heritage Festival in July,
Divali, the Hindu festival of Lights, where many homes and streets are
decorated with twinkling deyas (small clay pots). This is celebrated on “the
darkest night of the month of Kartik” (around October or November).
Carnival
Carnival is the biggest of Trinidad and Tobago’s many festivals. It ranks with New Orleans’ Mardi
Gras and Brazil’s Carnival in terms of popularity. The Calypso Monarch competitions, Calypso
Tents, Talk Tents, the Steelband competition (Panorama), Kiddies’ Carnival, Parades of Kings and
Queens of Carnival, Dimanche Gras, J’Ouvert, Parades of Bands are some of the many events
associated with Carnival. These events take place between Christmas and Ash Wednesday.
Trinidad and Tobago’s has often been touted as the greatest show on earth.
Other Events
Apart from the many indigenous cultural events, Trinidad hosts a number of cultural events all year
round that appeal to those who appreciate the classics. These include the Music Festival, the
World Steelband Music Festival, Pan Jazz Festival, ballet and theatre of international quality.
1 1 .1 0 . Trans port
Local transport is shared by route taxis, private taxis and public bus service that runs on main
routes.
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XI Exp a tria te Livin g / Cu ltu re
1 1 .1 1 . Commercial Practices , Cultural Norms and S afety Tips
1 1 .1 1 .1 . Bus ines s Hours
Government office hours are generally from 8.00 a.m. to 4.15 p.m. from Monday to Friday.
Commercial business hours are from 8.00 a.m. to 4.30 p.m. from Monday to Friday.
Shopping Malls are generally open until 7.00 p.m. Monday to Saturday. Banks are opened
Monday to Friday.
1 1 .1 1 .2 .
Bus ines s Attire
Businessmen and women doing business in Trinidad and Tobago should be aware that
despite the warm climate and the fact that the country is part of the Caribbean, business
attire here is conventional business wear. Furthermore, business offices are generally airconditioned.
Men
For office wear, long or short-sleeved shirts, worn with ties, are the norm. Jackets are
used on more formal occasions.
Women
Conventional business suits, or skirts and blouses, are the norm for office wear.
Outside of business
Light-weight formal and casual clothing.
1 1 .1 1 .3 . Walk ing
There are various places in Trinidad and Tobago for walking. Precautions should be
taken when walking at night. It is always best to walk in groups.
1 1 .1 1 .4 . S ig hts eeing
Exploring remo te and secluded areas of the country (of which there are many) should be
done in groups, and with persons familiar with the country and the environment such as
professional Tour Guides.
Trinidad and Tobago Tour Guide Association
111 Cascade Road
St Anns, Port of Spain
1 868 623 5559
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126
XII Utility Ra tes a n d Ca p a city
XII.
UTILITY RATES AND RAW MATERIAL CAPACITY
1 2 .1 .
Electricity Rates
Table 12.1.1. Electricity Rates
Domestic
Commercial
Industrial
D1
Industrial
D2
Industrial
D3
Industrial
Very Large
Demand Charge
Demand Charge
Demand Charge
Demand Charge
TT$26.08 per KVA *
TT$23.60 per KVA *
Energy
Charge
Energy
Charge
TT$0.069 per kwh for
all kilowatt-hours
TT$0.0614 per kwh
for all kilowatt-hours
Reserve Capacity
Charge
Reserve Capacity
Charge
Energy
Charge
Energy
Charge
TT$21.75 per
KVA *
TT$21.75 per KVA
*
TT$0.15 per kwh for all
kilowatt-hours.
TT$0.165 per kwh for
all kilowatt-hours.
Energy
Charge
Energy
Cha rge
Customer Charge
Customer Charge
TT$2.00 per month.
TT$10.00 per month.
TT$0.1675 per
kwh for all
kilowatt-hours
TT$0.152 per kwh
for all kilowatthours
Minimum Bill
TT$5.00 per month or
part thereof.
Minimum Bill
TT$29.00 per month
or part thereof.
Reserve Capacity
Charge
Reserve Capacity
Charge
Source: Public Utilities Commission of Trinidad and Tobago * of Maximum Demand in a month
1 2 .2 .
Water Rates
Table 12.2.1.
Water Rates
Type of
Consumer
Domestic
Rates
Unmetered
Based on the Annual Taxable Value (ATV) of the Property and charged per
quarter as follows:
TT$0. - TT$500 - 95% of ATV, min. TT$108;
TT$501 – TT$1000 - 81% of ATV, min. TT$118;
TT$1001 – TT$2000 - 54% of ATV, min. TT$203;
Over TT$2000
- 47% of ATV, min. TT$270, max. TT$304
Metered
Up to 150 cubic meters -TT$1.75 per cubic meter
Above 150 cubic meters -TT$3.50 per cubic meter
Minimum Bill:
-TT$30 per quarter
Industrial
Unmetered
TT$474 per month
Metered
TT$3.50 per cubic meter per month; Minimum Bill: TT$35 per month
Guide to Investing in Trinidad & Tobago
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XII Utility Ra tes a n d Ca p a city
Commercial
Unmetered
TT$474 per month
Metered
TT$3.50 per cubic meter per month; Minimum Bill: TT$35 per month
Agricultural
Unmetered
15% of ATV/month; Minimum Bill: TT$105 per month
Metered
TT$2.25 per cubic meter per month; Minimum Bill: TT$20 per month
Source: Public Utilities Commission of Trinidad and Tobago
1 2 .3 .
Natural Gas Prices
Table 12.3.1.
Natural Gas Prices
Type of Consumer
Rates
Small Commercial Users
US$ 2.20 per million BTU
Large Commercial and Industrial Users
Negotiable depending on quantities required
1 2 .4 .
Raw Material Res ources
Table 12.4.1.
Raw Material
Raw Material Resources
Details
Quantity
Petroleum
Production (1999/2000)
43.6 million barrels
Crude Reserves as at
1.1.99
Proven
Probable
Possible
605 million barrels
109.8 million barrels (additional)
1,600 million barrels (additional)
Natural Gas Reserves
Production (2002)
Natural Gas Usage (2001)
Proven
Probable
Possible
1843MMcfd
422.83MMcfd
20.35 BCF
4.69 BCF
3.47 BCF
Ammonia
Annual Production
3.20 million tonnes
Urea
Annual Production
565,130 tonnes
Methanol
Annual Production
2.12 million tonnes
Natural Gas:
Guide to Investing in Trinidad & Tobago
128
XII Utility Ra tes a n d Ca p a city
Raw Material
Details
Iron & Steel
Asphalt
Cocoa
Coffee
Sugar Cane
Forestry
Quantity
Production of direct Reduced Iron
()
Production of Steel Billets ()
Production of Wire Rods ()
Annual Production ()
1.5 million tonnes
Reserves
10 million tonnes
Annual Production (2002)
Average Production, 1994-1998
Annual Production (1998)
Average Production, 1994-1998
Annual Production of Raw Sugar
(1998)
Average Production of Raw Sugar,
1994-1998
1.27 million kilograms
1.7 5 million kilograms
367,300 kilograms
733,000 kilograms
64.6 thousand tonnes
Natural Forest Cover
248,000 ha (48.4 total land area)
734,775 tonnes
654,288 tonnes
18,700 tonnes
99.1 thousand tonnes
Source: Energy Planning Division, Ministry of Energy and Energy Industries and Central Statistical Office
1 2 .5 .
Telephone and Telecommunication S ervices
Telecommunication Services Company of Trinidad and Tobago Limited (TSTT), which is partly
owned by Cable and Wireless of the U.K., and partly owned by the Government of Trinidad and
Tobago, is the domestic monopoly provider of the public switched local and international
telecommunications services in Trinidad and Tobago.
TSTT has fully digital network infrastructure. Its transport network is based on a fibre optic
backbone supported by microwave radio systems. The company currently has a capacity of
419,991 fixed lines and working lines of 315,105 at February 2003.
The Company offers a wide range of services, ranging from basic voice mobile service and internet
access.
At present, the following services are offered:
§
§
§
§
§
§
§
§
§
§
§
§
Asynchronous Transfer Mode (ATM)
Audio-Text Services
Audio-Conferencing
Autoquote
Axis -Advanced P Services
Call Control Services
Call Master Services
Centrex
Data Leased Lines
DID
Direct Exchange Lines
E-Bar
Guide to Investing in Trinidad & Tobago
§
§
§
§
§
§
§
§
§
§
International Credit Card Authorization
Integrated Services Digital Network
(ISDN)
Maritime Services
Message Detail Recording
Microwave
Mobile Services (Prepaid. Postpaid and
Global System for Mobile (GSM)
Pay Station
Routing / Routers
Talk n Save
Telegraph Services
129
XII Utility Ra tes a n d Ca p a city
§
§
§
§
§
§
Foreign Exchange Lines
Frame Relay
Hot Line
Internet
Wireless Local Loop
Volume Incentive Plan (VIP)
§
§
§
§
§
§
Telex
Tie Circuits
Traveller Services
Off Premises Extension Special Events
800 Services
10-10-335
The international access and country area code for Trinidad and Tobago is 1-868.
Rates
Telephone day rates (8.00 a.m. - 5.00 p.m.) within Trinidad and Tobago, range from approximately TT$0.08
per minute to TT$0.69 per minute, with a minimum charge of TT$0.23 per call.
Telephone night rates (5.00 p.m. - 8.00 a.m.) within Trinidad and Tobago, range from approximately TT$0.08
per minute to TT$0.23 per minute, with a minimum charge of TT$0.23 per call.
City/
Province/Country
Australia
Brazil
Caracas
Chile
Colombia
France
Germany
Hong Kong
Italy
1 2 .6
Table 12.5.1.
Overseas Rates per Minute (in $TT) for Direct Dialling
Day
Night Saver
City
Day
Rate
Rate
/Province/Country
Rate
6.85
5.80
Japan
10.0
10.00
8.50
London
4.50
2.75
2.30
Miami
4.50
10.00
8.50
New York
4.50
6.00
4.95
Ontario
4.50
6.00
4.95
South Africa
6.85
6.55
5.50
Spain
6.85
6.85
5.80
Switzerland
6.55
6.55
5.50
Washington
4.50
Night Saver
Rate
8.50
3.99
3.99
3.99
3.99
5.80
5.80
5.50
3.99
Internet Acces s
Access to the Internet is available through Internet Service Providers (ISP) which include:
TSTT
WOW
OPUS
CARIB-LINK
1 2 .7 .
-
tstt.net.tt
wow.net
opus-networx.com.
carib-link.net
S atellite Communications
VSAT (Very Small Aperture Terminals) are currently being used for the transfer of data via satellite
by some companies in Trinidad and Tobago. These include banks and some of the large multinationals.
Guide to Investing in Trinidad & Tobago
130
XII Utility Ra tes a n d Ca p a city
1 2 .8 .
Pos tal S ervices
The Trinidad and Tobago Postal Corporation (TTPost), which has been in operation since July 1,
1999, is managed by New Zealand Post International Limited (NZPIL) via a five year management
contract, TTPost remains one hundred percent owned by the Government of Trinidad and Tobago.
It is a state corporation but under NZPIL’s management, and is being operated as a business with
targets and objectives spelt out in a Delegated Management Agreement (DMA).
Express mail services and courier services are available in Trinidad and Tobago. In the case of the
latter, these services are provided through the international courier companies, such as DHL,
Federal Express and UPS. In addition, BWIA and Specialised Airline Services (SAS), also offer
delivery services from and to the airports to which they have flights.
Guide to Investing in Trinidad & Tobago
131
APPENDICES
APPENDICES
ADVERTISING AGENCIES ASSOCIATION OF TRINIDAD AND TOBAGO
C/o Ian Collier
13 Rust Street
St Clair
1 868 622 5865
www.cmbcreative.com
LAW ASSOCIATION OF TRINIDAD AND TOBAGO
Suite 4
Chancery Courtyard
13-15 St Vincent Street
1 868 625 9350
ARCHITECTURAL ASSOCIATION OF TRINIDAD AND TOBAGO
PO Box 585
PoS
1 868 623 4161
administration@ttiarch.com
ASSOCIATION OF REAL ESTATE AGENTS (AREA)
76 Picton Street
Newtown
1 868 628 9048
INTERNATIONAL SCHOOLS FOR FOREIGNERS
Name
International School of Port of
Spain
Maple Leaf International
Guide to Investing in Trinidad & Tobago
Address
Phone-No.
1 International Drive, Westmoorings
1-868-632-4591
Alyce Heights Drive, Alyce Glen, Petit
Valley
1-868-632-9578/633-3173
132
APPENDICES
US FIRMS WITH INTEREST IN TRINIDAD AND TOBAGO
Country
United States
Company/Local Representative
3M Interamerica Inc.
Alcoa Steamship Company Inc.
American Airlines Inc.
American Express
American Life & General Insurance Company
(Trinidad & Tobago) Ltd. (ALGICO)
American Web Ventures Network Caribbean
Limited
Amerijet International Inc
Atlantic LNG Company of Trinidad and Tobago
BHP Petroleum (Trinidad) Inc.
Baker Hughes International Branches Inc.
Baker Oil Tools Division
Baroid Trinidad Services Ltd
Bethel International Inc
Brik Hillman Consultants Inc
Bristol-Myers Squibb (W.I.) Ltd.
Carlisle Tire & Rubber (Free Zone) Ltd.
Chevron Texaco Trinidad Inc.
Citibank (Trinidad & Tobago) Ltd.
Coca-Cola Caribbean Bottlers
Colgate Palmolive (Caribbean) Inc.
Crown, Cork and Seal (W.I.) Ltd.
DHL Worldwide Express
Environmental Resources Management
Ernst & Young
EOG Resources Trinidad Ltd.
Exxon Exploration & Production Trinidad Ltd.
Point Lisas Nitrogen Ltd.
Federal Express
Fugro Trinidad Ltd.
Glenn International Inc.
Halliburton Trinidad Ltd.
InnCOGEN
IBM World Trade Corporation
Descalott Construction Limited
Johnson & Johnson (Trinidad) Ltd.
Guide to Investing in Trinidad & Tobago
US Company
3M Interamerica Inc.
Alcoa Steamship Company Inc.
American Airlines Inc.
American Express
A Member Company of American
International Group (AIG)
Cabot Trinidad LNG Corporation
BHP Petroleum (Americas) Inc.
Baker Hughes International
Baroid Drilling Fluids Inc
Atlantic LNG
Bristol-Myers Squibb Co
Carlisle Tire & Rubber Co
Chevron Texaco Corp.
Citibank N.A.
Coca Cola
Colgate Palmolive Company
Crown, Cork and Seal Co. Inc.
DHL Worldwide Express
Mississipi Chemical Corporation Ltd. And
Koch Nitrogen Co.
Federal Express
Halliburton Services International
IBM World Trade Corporation
Ionics Construction Limited
Johnson & Johnson International
Kellog Pan American Corp.
133
APPENDICES
US FIRMS WITH INTEREST IN TRINIDAD AND TOBAGO (CONTINUED)
Country
United
States
Company/Local Representative
KFC/Pizza Hut
Prestige Holdings
Land Coast Insulation, Inc.
Louis Harris (Caribbean) Ltd.
McCann-Erickson (Trinidad) Ltd.
Medical Air Services Association
Microsoft Trinidad and Tobago
(The) Myerson Company Ltd.
Nabisco Royal Incorporated
US Company
Payless Shoe Source
Phoenix Park Gas Processors Ltd.
Power Generation Company of Trinidad and
Tobago Ltd.
PriceSmart
Schlumberger Trinidad Inc.
Singer Sewing Machine Company
Smithkline Beecham (Caribbean) Ltd.
Subway
Trincast Ltd.
Trinidad Valve & Fitting Co. Ltd. (Trinvalco)
Titan Methanol
Payless Shoe Source
Conoco Inc. and Pan West Constructors Ltd.
Southern Electric International
McCann-Erickson Worldwide
Medical Air Services Association
Austenol Incorporates
Nabisco International, Inc.
Schlumberger International Corporation
Singer Sewing Machine Company
Smithkline Beecham International
Subway (Caribbean) Group Inc.
AMPCO Metal
Tidewater Marine West Indies Ltd.
Saturn Methanol/AMOCO/Beacon Energy
Fund
Tidewater Marine International
TNT Express Worldwide
Universal Package Systems Ltd
TNT Express Worldwide
United Parcel Services
US FIRMS WITH FRANCHAISES IN TRINIDAD AND TOBAGO
TGI Friday’s
Ruby Tuesdays
Tony Roma’s
Guide to Investing in Trinidad & Tobago
134
APPENDICES
CANADIAN FIRMS WITH INTEREST IN TRINIDAD AND TOBAGO
Country
Canadian
Company/Local Representative
Canadian Companies with Joint Ventures and
Partnerships in Trinidad and Tobago
Alstons Building Enterprises Ltd. (ABEL)
Bhagwansingh’s Hardware Industries (Cantrex
Ltd)
Errol Clarke Associates Ltd.
Hand Arnold Industries
Mora Oil Ventures (Moraven)
Northern Basin Consortium
Planning Associates Ltd.
PCS Nitrogen Trinidad Limited
Royal Bank Institute of Business and
Technology
Cableview
S.M. Jaleel & Co. Ltd.
Caribbean Methanol Co Ltd
Talisman Energy Inc
TYE Manufacturing Co. Ltd. (Bel T’dad)
National Energy Skills Centre (NESC)
Waste Disposal Ltd. (Waste Plastics Ltd.)
Canadian Firm
Fulton Windows
Comcraft Canada ltd.
Cumming Cockburn Limited
Avmor Ltd
H.J. Heinz of Canada
Delmar Energy
Conwest Exploration (International Ltd.
Stanley Technology Group
Potash Corporation of Saskatchewan Inc
Applied Courseware Technology Inc.
Inter-Comm Holdings (Trinidad ) Ltd
Breuvages Cott Inc.
Methanex Corporation
BHP Billiton Petroleum
Produits Bel Inc.
Southern Alberta Institute of Technology
(SAIT)
Kofman Plastics International Trading of
Canada
Canadian Companies With Local Investments In Trinidad And Tobago
Air Canada
Scotiabank Trinidad and Tobago Limited
Caribbean Packaging Industries Ltd.
Crown Cork & Seal (W.I.) Ltd.
Mayfair Knitting Mills (T’dad) Ltd.
Guide to Investing in Trinidad & Tobago
Air Canada
Bank of Nova Scotia
Canadian Overseas Packaging Industries Ltd.
Crown Cork & Seal Canada Inc.
Modefair Industries Ltd.
135
APPENDICES
BRITISH FIRMS WITH INTEREST IN TRINIDAD AND TOBAGO
British Firm
Alpha Airport Holdings (UK) Ltd.
Atlantic LNG
Bacon & Woodrow
Lewis Berger Overseas Holdings
Bristow Group Limited
British Gas PLC
CAB International
D. Essex Freight Forwarding Ltd.
Tate & Lyle PLC
Carillion PLC
Courts Furnishers PLC
RGIT Montrose Ltd
GlaxoSmithKline PLC
Venture Production Co Ltd
International Computers Limited
Gordon Grant Investment Ltd. UK
Guinness Exports Limited
Hilton International
Insertech Group PLC
Unilever PLC
Lipton Tea Company Ltd.
Lloyds Register of Shipping
EMP Limited
Rentokil Limited.
Securicor Group PLC
Shell Overseas Holdings
Cable & Wireless PLC
Marketing
&
Reservations
International Ltd.
ASCo Group Limited
HSS Hire Service Group PLC
BAT Industries PLC
BP
Guide to Investing in Trinidad & Tobago
Local Firm
KaterServ Airport Services Ltd resentative
Atlantic LNG Company of
Trinidad and Tobago
Bacon, Woodrow & De Souza
Berger Paints Trinidad Ltd.
Bristow Caribbean Ltd.
British Gas Trinidad and Tobago Ltd.
CAB International Institute of Biological Control
Caribbean Express Line (T’dad ‘96) Ltd.
Caribbean Bulk Storage & Trading Company
Carillion (Caribbean) Ltd.
Courts (Trinidad) Ltd.
RGIT Montrose (Trinidad) Ltd
GlaxoSmithKline PLC
Venture Production Co (Trinidad) Ltd
Fujitsu Transaction Solutions (Trinidad) Limited
Gordon Grant Investment Ltd.
Guinness (Caribbean) Limited
Hilton Trinidad & Conference Centre
Insertech (Caribbean) Ltd.
Lever Brothers (W.I.) Ltd.
Lexicon Trinidad Limited
Lipton (Trinidad) Ltd.
Lloyds Register of Shipping
Evolve Management Partners (Trinidad) Limited
Readymix (West Indies) Ltd.
Rentokil Initial (Trinidad) Limited
Securicor Trinidad Ltd.
Shell Trinidad Ltd.
Telecommunications Services of T’dad & Tobago
Rex Turtle Beach Hotel
ASCo Trinidad Limited
HSS Rental Stores
West Indian Tobacco Co. Ltd.
BPTT
136
APPENDICES
FOREIGN MISSIONS IN TRINIDAD
Name
Honorary Consul
Address
Phone-No.
AUSTRIA
Honorary Consul
13 Woodlands Road, Valsayn Park (North)
1-868-662-2961
BARBADOS
Honorary Consul
12 Mayfair Gardens, Santa Cruz
1-868-638-8431
BANGLADESH
People’s Republic of
Bangladesh Consulate
1 Shafik Dr, C/Crossing San Fernando
1-868-652-2637
33 Wahid Cir Dr, Sumadh Gardens San Fernando
1- 868-653-5534
BELGIUM
Honorary Consul
26 Lisa Avenue, Hillsboro, Maraval
1-868-628-2951
BRAZIL
Embassy
Federative
Brazil
18 Sweet Briar Road, St. Clair
1-868-622-5779/5771
CANADA
High Commission
Canada
CHILE
Honorary Consul
Lennox Petroleum Services, 1st Avenue South Western
Main Road, Chaguaramas
1-868-634-4500
CHINA
Embassy of the People’s
Republic of China
39 Alexandra Street, St. Clair
1-868-622-6976
COLOMBIA
Embassy of The Republic
of Colombia
16 Queen’s Park West, Port of Spain
1-868-622-5938
COSTA RICA
Vice Consul
16 Queen’s Park West, Woodford Street, 3rd Floor,
Port of Spain
1-868-628-0653
CUBA
Embassy Of The Republic
Of Cuba
96 Morne Coco Road, West Moorings
1-868-632-6505
DENMARK
Honorary Consul
20 Tragarete Road, Port of Spain
1-868-625-1156
DOMINICAN
REPUBLIC
Honorary Consul
5 Norman Terrace, Mt. Anne Drive, Second Avenue,
Cascade, Port of Spain
1-868-624-3667
of
The
Republic of
Guide to Investing in Trinidad & Tobago
for
Maple House, 3-3A Sweet Briar Road, Port of Spain
1-868-622-6232
137
APPENDICES
FOREIGN MISSIONS IN TRINIDAD (CONTINUED)
Name
Address
Phone-No.
1A Brieves Road, Maraval
1-868-622-9162
EL SALVADOR
Honorary Consul
FINLAND
Honorary Consul
FRANCE
Embassy
Republic
the
French
6th Floor Tatil Building,
11 Maraval Road, Port of Spain
1-868-622-7446/7
GERMANY
Embassy of The
Republic of Germany
Federal
7-9 Marli Street, Newtown, Port of Spain
1-868-628-1630-2
GUYANA
Guyana Republic Consulate
Colsort Mall, 4th Floor,
11-13 Frederick Street, Port of Spain
1-868-627-1692
HOLY SEE
Apostolic Nunciature
11 Mary Street, St. Clair
1-868-622-5009
INDIA
High Commission
Republic of India
INDONESIA
Honorary Consul
Churchill Roosevelt Highway & Boundary Road,
El Socorro
1-868-674-2909/3677
ITALY
Honorary Consul
47D Rockdale Road, Diego Martin
1-868-637-3275
JAMAICA
High Commission for Jamaica
2 Newbold Street, St. Clair
1-868-622-4995
JAPAN
Embassy of Japan
5 Hayes Street, St. Clair
1-868-628-5991
KOREA
Embassy of the Republic of
Korea
Albion Court, 61 Dundonald Street,
Port of Spain
1-868-627-6791
LEBANON
Honorary Consulate
32 Charlotte Street, Port of Spain
1-868-627-6566
MEXICO
Embassy of The
Mexican States
United
Algico Plaza, 4th Floor, 91-93 St. Vincent Street,
Port of Spain
1-868-627-6988,6941
NETHERLANDS
Embassy of the Kingdom of
the Netherlands
3rd Floor, Life of Barbados Bldg, 69-71 Edward
Street, Port of Spain 1-868-625-1210/1722
of
Guide to Investing in Trinidad & Tobago
14 Herbert Street, St. Clair
1-868-622-1061
for
the
6 Victoria Avenue, Port of Spain
1-868-627-7480/7481/4027
138
APPENDICES
FOREIGN MISSIONS IN TRINIDAD, continued
Name
Address
Phone-No.
3 Maxwell Phillip Street, St. Clair
1-868-622-6834
NIGERIA
High Commission of the
Federal Republic of Nigeria
NORWAY
Honorary Consul
10 French Street, Port of Spain
1-868-625-3332/6970
PAKISTAN
Honorary Consul
3 Carmody Street, St. Augustine
1-868-662-2037
PANAMA
Honorary Consul
High Square Condominium, Suite #6
1A Dere Street, Port of Spain
1-868-623-3435
PORTUGAL
Honorary Consul
11-13 Milling Avenue, Sea Lots, Port of Spain
1-868-625-1745
SENEGAL
Senegalese Consulate
4 Queen’s Park West, Port of Spain
1-868-623-2833
SPAIN
Spanish Consulate
2B Riverside Drive, Shorelands,
Port of Spain
1-868-637-0319
SURINAME
Honorary Consul
5th Floor Tatil Building,
Maraval Road, Port of Spain
1-868-628-0704/0089
SWEDEN
Honorary Consul
2 Pearl Garden, Petit Valley
1-868-632-0261
SWITZERLAND
Honorary Consul
74-76 Dundonald Street, Port of Spain
1-868-623-7816
SYRIAN ARAB
REPUBLIC
Honorary Consul
14 Newbury Hill, Glencoe
1-868-637-2381
UNITED
KINGDOM
High Commission for the
United Kingdom and Northern
Ireland
19 St. Clair Avenue, St. Clair
1-868-622-2748
UNITED STATES
OF AMERICA
Embassy of the United States
of America
15 Queen’s Park West, Port of Spain
1-868-622-6371-6
URUGUAY
Consulate for the Oriental
Republic of Uruguay
18A Collens Road, Maraval
1-868-622-5772
VENEZUELA
Embassy of the Republic of
Venezuela
16, Victoria Avenue, Port of Spain
1-868-627-9773
Guide to Investing in Trinidad & Tobago
139
APPENDICES
HEADS OF OVERSEAS MISSIONS FOR THE REPUBLIC OF TRINIDAD AND TOBAGO
Country
Name
BELGIUM
Embassy of the Republic of T&T,
Brussels, Belgium
H.E. Ms Susan Gordon
Charge d’ Affairs a.i.
BRAZIL
Embassy of the Republic of T&T,
Brasilia, Brazil H. E. Robert M. Torry
Ambassador
SHIS QL 02 Conj. 02, Casa 01
71665-028 Brasilia DF, BRAZIL
TEL: 01-5561-365-3466
FAX: 01-5561-365-1733
e-mail: trinbago@tba.com.br
CANADA
Consulate General of the
Republic of T&T, Toronto,
Canada
Mr. Cyril Blanchfield
Consul General
2005 Sheppard Avenue East, Suite
Willowdale, Ontario, M2J 5B4 CANADA
TEL: 1-416-495-9442-3
FAX: 1-416-495-6934
e-mail: ttcontor@idirect.com
High Commission of the
Republic of T&T, Ottawa,
Canada
H.E. Mr. Robert Sabga
High Commissioner
200 First Avenue, Ottawa, Ontario K1S 2G6
CANADA
TEL: 1-613-232-2418-19
FAX: 1-613-232-4349
e-mail: tthcotta@travel-net.com
INDIA
High Commission of the
Republic of T&T, New Delhi,
India
Mr. Tedwin Herbert
Acting High Commissioner
131 Jor Bagh, New Delhi, 110003,
INDIA
TEL: 011-911-1-416-8186/7
FAX: 011-911-1-462-4581
e-mail: hereptt@giasd101.vsnl.net.in
JAMAICA
High Commission of the
Republic of T&T, Kingston,
Jamaica
H.E. Mr Dennis Francis
High Commissioner
First Life Jamaica Building, 3rd Floor, 60
Knutsford Boulevard, Kingston 5,
JAMAICA
TEL: 1-868-926-5730
FAX: 1-868-926-5801
e-mail t&thckgn@infochan.com
NIGERIA
High Commission of the
Republic of T&T, Lagos, Nigeria
Mr. Patrick Edwards
High Commissioner
Plot 1301, Parakou Crescent off Amino Kano
Crescent Wuse 2 Abuja,
FEDERAL REPUBLIC OF NIGERA
TEL: 234-9-523-7534
FAX: 234-9-523-7684
no internet connection
Guide to Investing in Trinidad & Tobago
Address
Phone. No.-;Fax No.;E-Mail Address
Avenue de La Faisanderie 14, 1150 Brussels,
BELGIUM
TEL: 01-322-762-9400
FAX: 01-322-772-2783
e-mail: information@ttm.eunet.be
140
303,
APPENDICES
SWITZERLAND
UNITED
KINGDOM
UNITED STATES
OF AMERICA
Permanent Mission of the
Republic of T&T to the U.N.,
Geneva, Switzerland
Ms Mary Ann Richards
Ambassador/Permanent Rep.
High Commission of the
Republic of Trinidad & Tobago,
London, U.K.
Mrs. Sandra McIntyre-Trotman
Acting - High Commissioner
37-39 rue de Vermont, 1202 Geneva,
SWITZERLAND
TEL: 01-4122-918-0380 FAX: 01-4122-734-9138
e-mail: mission.trinidad-tobago@ITU.CH
Consulate General of the
Republic of T&T, New York,
U.S.A
Mr. Terrence Walker
Consul General
733 Third Avenue,
Suite 1716, New York
N.Y. 10017-3204
USA
Tel: 1-212-682-7272
Fax: 1-212-986-2146
e-mail: ttconsulateny@npl.net
Permanent Mission of the
Republic of T&T to the U.N. New
York, U.S.A.
H.E. Mr. George Mc Kenzie –
Ambassador/Permanent
Representative
820 Second Avenue,
5th Floor, New York,
N.Y. 10017
USA
Tel: 1-212-697-7620/3
Fax: 1-212-682-3580
e-mail: ttpmunny@pop.dorssi.org
Embassy of the Republic of T&T,
Washington, D.C., U.S.A. –
H.E. Mr. Michael Arneaud –
Ambassador
1708 Massachusetts Avenue, N.W.,
Washington D.C., 20036-1975
USA
Tel: 1-202-467-6490-3
Fax: 1-202-785-3130
e-mail: emttobago@erols.com
Consulate General of the
Republic of T&T, Miami, Florida
Mr. Chandradath Singh
Consul General
1000 Brickell Avenue,
Suite 800, Miami,
Florida 33131-3047
USA
Tel: 1-305-374-2199
Fax: 1-305-374-3199
e-mail: ttmiami@worldnet.att.net
Guide to Investing in Trinidad & Tobago
42 Belgrave Square,
London, SW1X 8NT
United Kingdom
Tel: 01-0271-245-9351
Fax: 01-0171-832-1065
e-mail: tthc.info@virgin.net
141
APPENDICES
VENEZUELA
Embassy of the Republic of T&T
– H.E. Mr. Philip R.A. Sealy –
Ambassador
Guide to Investing in Trinidad & Tobago
Quinta Serrana, 4a Avenida
Entre 7a & 8A, Transversales,
Altamira, Caracas
PO Apartado del Este 61322
Caracas 1060 A,
Venezuela
Tel: 582-261-3748
Fax: 582-261-9801
e-mail: ttemb@caracas.c-com.net
142
APPENDICES
HONORARY CONSULS FOR THE REPUBLIC OF TRINIDAD AND TOBAGO
Name
Address
Phone. No.P.O. Box 109, Rose Bay, New South Wales 2029,
AUSTRALIA
(612) 337-4391
AUSTRALIA
Australia - Mr. Michael G.
Agostini - Honorary Consul for
the Republic of Trinidad and
Tobago
BRAZIL
Brazil - Dr. Paulo Mangel Lenz
Cesar, PROTASIO, Honorary
Consul for the Republic of
Trinidad and Tobago
BMI-PROMER, Rua Senador Dantas, 80, 18 Andar, 20031
Rio de Janeiro - RJ, BRAZIL
021-203-1229
Mr. Ricardo W. Hagen Crull Honorary Consul for the Republic
of Trinidad & Tobago “Marwa”
Commercial Exportadora Ltda
Rua 24 de Maio, 35 - 15th Floor, 1504, 01041 Sao Paulo
(SP) BRAZIL
011-221-8150/6679
CANADA
Canada - Mr. Harridial Siew
Maharaj - Honorary Consul for
the Republic of Trinidad and
Tobago
252 Rochester Avenue, Winnipeg, Manitoba R3J 3W2,
CANADA
1-204-269-5169
DOMINICAN REPUBLIC
Dominican Republic - Mr. Freddy
A. Reyes Perez - Honorary
Consul for the Republic of
Trinidad and Tobago National
Association of Savings & Loans
Calle Isabel La Catolica
DOMINICAN REPUBLIC
(868) 687-1202
HONG KONG
Hong Kong - Dr. Richard S.C.
Yapp - Honorary Consul for the
Republic of Trinidad and Tobago
Room 1108, Stanhope House
734-738 King’s Road, Quarry Bay
HONG KONG
(852) 2833-9091
KOREA
Republic of Korea - Mr. Seung
Woong Choi - Honorary Consul
76-203 Hyundai Apt., Ahgkujunj-dong Kanjman-Ku,
Seoul, REPUBLIC OF KOREA
SWITZERLAND
Switzerland - Mr. Agathon Aerni
- Honorary Consul for the
Republic of Trinidad and Tobago
Sous Directeur, Banque Populaire Suisse, Direction
Generale, 30001 Berne, SWITZERLAND
Guide to Investing in Trinidad & Tobago
171,
143
Santo
Domingo,
APPENDICES
INTERNATIONAL ORGANIZATIONS
Name
Inter American Development Bank (IDB)
Address
Phone-No.
19 St. Clair Avenue,
Port of Spain
1-868-622-880073
Mr. William Robinson – Representative
Inter American Institute for Cooperation in Agriculture
(IICA)
3 Herbert Street, P.O. Box 1318
St. Clair
1-868-628-4079/ 622-7072
Mr. Arron H Parke – Representative in Trinidad & Tobago
Organization of American States (OAS)
15D Wainwright Street,
St. Clair
B.O. Box 1231
1-868-622-0019/9272
Dr. Joseph C. Campbell – Director
United Nations Development Programme (UNDP)
United Nations House
3 Chancery Lane, Port of Spain
1-868-623-7056
Ms Inyang Abong-Harstrup - Resident Representative
United Nations Ec onomic Commission for Latin America
and the Caribbean (ECLAC)
CHIC Building
63 Park Street, Port of Spain
1-868-623-5595
Dr. Len Ishmael – Director
United Nations Education Scientific & Cultural
Organization (UNESCO)
15 Wainwright Street, St. Clair
1-868-622-0939
Dr. Surendranath Gajraj – Secretary General Representative
United Nations Food & Agricultural Organization (FAO)
134-138 Frederick Street, Port of Spain
1-868-623-5175
Mr. David W Bowen - Representative
United Nations Information Centre For The Caribbean
Area
Bretton Hall, 16 Victoria Avenue,
Port of Spain
1-868-623-4813
Ms Vashty Maharaj – Officer-in-Charge
Pan American Health Organisation / World Health
Organisation
49 Jerningham Avenue, Port of Spain
1-868-624-7524
Dr. Lilian Reneau-Vernon – Representative
Guide to Investing in Trinidad & Tobago
144
APPENDICES
INVESTMENT AND DEVELOPMENT AGENCIES
Name
Agricultural Development Bank
Loans, business and technical advisory service for agriculture
and fishing businesses
Address
Phone-Nos.
87 Henry Street, Port of Spain
1-868-623-6261/5
Caribbean Business Services Limited (CBSL)
CBSL is a joint venture between a consortium of local financial
institutions and manufacturers’ associations, and the Brussels
based Centre for Development of Industry (CDI). CBSL provides
assistance in production, marketing, partnership agreements and
launching new manufacturing projects.
1st Floor T&T Chamber of Commerce Building,
Columbus Circle, WestmooringsBy-the-Sea, Pt. Cumana
1-868-625-95422103
Chaguaramas Development Authority
Administers the Chaguaramas peninsula, an area to the west of
Port of Spain which has been earmarked for tourism and light
industrial development
Airways Road, Chaguaramas
1-868-634-4349, 634-4364
Development Finance Limited
This is an investment and development bank. It provides loans,
equity capital and assistance for investment in private industrial
and business enterprises.
8-10 Cipriani Boulevard,
Port of Spain
1-868-625-4666/8, 623-4665/7
Enterprise Development Limited (EDL)
Associated with the International Finance Corporation. EDI
provides assistance in project development and sourcing of
finance.
The Mutual Centre,
16 Queen’s Park West,
Port of Spain
1-868-628-5074
Export Credit Insurance Company (Excico)
Provides insurance, guarantees and short-term financing for
exports
5th Floor (Penthouse)
Victoria Park Suite
14-17 Victoria Square
1-868-624-0047
Point Lisas Industrial Port Development Company (Plipdeco)
Owns and operates the Point Lisas port and industrial estate
Plipdeco House, Orinoco Drive,
Point Lisas, Couva
1-868-636-2201, 636-4388, 636-2705/7
Business Development Company
Promotes small and medium business through loan guarantee and
business advisory services, training programmes and information
151B Charlotte Street, Port of Spain
1-868-623-5507, 624-3923
Tourism and Industrial Development Company of Trinidad and
Tobago Limited (TIDCO)
Formed in 1995 as the marketing and strategic authority for the
promotion and facilitation of investment in industry, trade and
tourism
10-14 Philipps Street, Port of Spain
1-868-624-0234, 624-2953
Guide to Investing in Trinidad & Tobago
145
APPENDICES
INVESTMENT AND DEVELOPMENT AGENCIES, continued
Name
Trinidad and Tobago Free Zones Company (TTFZ)
Responsible for the promotion, approval, regulation, management
and control of free zones; provides assistance and advice for
export and trade-oriented companies wishing to operate under the
Free Zones Programme
World Trade Centre
Provides marketing support services and access to international
data bases for sourcing and marketing information
Guide to Investing in Trinidad & Tobago
Address
Phone-No.
Albion Court, 2nd Floor West, 61 Dundonald
Street, Port of Spain
1-868-625-4749, 623-8363
North Bank Road, Piarco
1-868- 669-4101/2
146
APPENDICES
GOVERNMENT MINISTRIES AND KEY AGENCIES
Name
Ministry of Agriculture, Land and Marine Resources
Attorney General & Legal Affairs
Ministry of National Security and Rehabilitation
Ministry of Energy and Energy Industries
Ministry of Finance
Ministry of Planning and Development
Ministry of Trade and Industry
Ministry of Foreign Affairs
Infrastructure Development and Local Government
Ministry of The Environment
Ministry of Labour and Small and Micro Enterprise
Development
Ministry of Works and Transport
Guide to Investing in Trinidad & Tobago
Address
Telephone-No.
St. Clair Circle, St. Clair, Port of Spain
1-868-622-1221/2
Cabildo Chambers, Corner St. Vincent and
Sackville Streets, Port of Spain
1-868-623-7010
1-868-625 - 0470
Temple Court, 31-33 Abercromby Street,
Port of Spain
1 868 623-2441
Riverside Plaza, Level 9, Besson and
Piccadilly Streets, Port of Spain
1-868-623-6708
Eric Williams Finance Building,
Eric Williams Plaza, Level 8
Independence Square,
Port of Spain
1-868-627-9700; 1-868-627-3240
Eric Williams Finance Building,
Eric Williams Plaza, Level 14
Independence Square,
Port of Spain
1-868-627-9700
Level 15 Riverside Plaza, Corner
Besson and Piccdally Streets
Port of Spain
1-868-628-1323
Level 15, Riverside Plaza, Corner Besson &
Piccadilly Streets, Port of Spain
1-868-623-4116-9,
1-868-623-2931,
1-868-625-4409; -868-627-0002;
Corner Richmond & London Streets
Port of Spain
1-868-625-1225-9
1-868-628-1325
Eric Williams Finance Building,
Eric Williams Plaza, Level 16
Independence Square,
Port of Spain
1-868-627-9700 Ext. 4212, 4217
Riverside Plaza, Level 11 Corner Besson and
Piccadilly Streets, Port of Spain
1-868-623-42422931
Corner Richmond and London Streets, Port of
Spain
1-868-625-1225-9
147
APPENDICES
GOVERNMENT MINISTRIES AND KEY AGENCIES, continued
Name
Address
Telephone-No.
KEY AGENCIES
Board of Inland Revenue
Trinidad House, St. Vincent Street,
Port of Spain
1-868-623-1211
Central Bank of Trinidad and Tobago
Central Bank Building,
Eric Williams Plaza,
Independence Square, Port of Spain
1-868-625-4835
Customs and Excise Division
Nicholas
Court,
Abercromby
Independence Square, Port of Spain
1-868-625-3311
Immigration Department
67 Frederick Street, Port of Spain
1-868-625-3571
Port Authority of Trinidad and Tobago
Wrightson Road, P.O. Box 549,
Port of Spain
1-868-623-5685
Tobago House of Assembly
Jerningham Street, Scarborough, Tobago
1-868-639-3421
1-2 Century Drive, Trincity Industrial Estate/ P.O. Box
467, POS
1-868-662-8827
Trinidad and Tobago Bureau of Standards
Trinidad and Tobago Stock Exchange
Guide to Investing in Trinidad & Tobago
1 Ajax Street, Port of Spain
1-868-625-5108
148
Street
and
Bus ines s and Profes s ional As s oc iations
BUSINESS AND PROFESSIONAL ASSOCIATIONS
Name
American Chamber of Commerce of Trinidad and Tobago
Address
Telephone No.
Upper Shopping Arcade
Trinidad Hilton and Conference Centre
Lady Young Road
Port of Spain
1-868-627-8570
Association of Trinidad and Tobago Insurance Companies
(ATTIC)
22 Cotton Hill
P.O. Box 311
Port of Spain
1-868-622-8994/6883
Copyright Organisation of Trinidad and Tobago
45C Jerningham Avenue
Belmont
Port of Spain
1-868-623-6101
Employers’ Consultative Association
43 Dundonald Street
P.O. Box 911
Port of Spain
1-868-625-4723, 625-4891, 623-6588
Institute of Banking and Finance of Trinidad and Tobago
Trinidad Publishing Co
Level 3
22-24 St. Vincent Street
Port of Spain
1-868-627-2231
Institute of Chartered Accountants of Trinidad and Tobago
(ICATT)
2nd Floor
The Professional Centre
Wrightson Road Ext.
P.O. Box 864
Port of Spain
1-868-625-1954
Joint Consultative Council for The Construction Industry
(JCC)
c/o T& T Chamber of Industry &
Commerce Secretariat, P O Box 499,
Columbus Circle, Westmoorings
1-868-637-2967
Library Association of Trinidad and Tobago
109 Abercrombry Street
Port of Spain
1-868-624-1130
Professional Valuation and Land Economy Surveyors of
Trinidad and Tobago
c/o Valuation Division
109 Henry Street
Port of Spain
1-868-623-4221
Guide to Investing in Trinidad & Tobago
149
Bus ines s and Profes s ional As s oc iations
The Association of Professional Engineers
P.O. Box 935
The Professional Centre
Wrightson Road Ext.
Port of Spain
1-868-627-6697
The Couva/Point Lisas Chamber of Commerce
CC House
Corner Millard Street &
128 Southern Main Road,
Couva
1-868-636-2961
The South Trinidad Chamber of Industry and Commerce
Inc.
Suite 13, Top Floor
Cross Crossing Shopping Centre
P.O. Box 80
San Fernando
1-868-657-9077
The Trinidad and Tobago Chamber of Industry and
Commerce
Chamber Building, Columbus Circle
Westmoorings
P.O. Box 499
Port of Spain
1-868-637-6966
Trinidad and Tobago Hotel, Restaurants and Tourism
Association (Tobago Chapter)
Apt #1 Goddard Building
Auchenskeoch Road
Carnbee
Tobago
1-868-639-9543; 1-868-660-228
Trinidad Hotel & Tourism Association
c/o Trinidad and Tobago Hospitality &
Tourism Institute
Airways Road,
Chaguaramas
1-868-634-1174-5
Trinidad and Tobago Law Association
Suite 4, Chancery Court Yard
13-15 St. Vincent Street, P.O. Box 534
Port of Spain
1-868-625-9350
Trinidad and Tobago Manufacturers Association
8a Stanmore Avenue
P.O. Box 971
Port of Spain
1-868-625-8862
Trinidad and Tobago Medical Association
115 Abercromby Street
Port of Spain
1-868-623-7246
Trinidad and Tobago Stock Exchange
1 Ajax Street
Port of Spain
1-868-625-5108
Guide to Investing in Trinidad & Tobago
150
Bus ines s and Profes s ional As s oc iations
INDEX
A
Access To Schools · 113
Agriculture · 36, 66, 68, 117, 138
Airport Facts And Figures · 1, 18
Airports & Routes · 16
Allowable Deductions · 93, 94, 109
Animal Quarantine · 116
Applications For Incentives · 65
Approved Property Development Company · 86
Articles of Incorporation · 60
Assessment And Audit · 91
Association of Caribbean States · 2, 10
audit committee · 57, 61
B
Bad and Doubtful Debts · 97
Balance Of Payments · 1, 25
Basic Legislation, Tax · 90
Basic Principles, Tax · 99, 107
Beaches · 117
Betting, Gaming And Lotteries · 111
Bonds · 48
Boxing Day · 56
Branch or External Companies · 57
Branch Profits · 102
Branches · 99
BUSINESS AND PROFESSIONAL
ASSOCIATIONS · 139
Business Attire · 118
Business Environment · 1
Business Hours · 118
Buying An Existing Property · 73
By- Laws · 60
C
Cable Television · 20
Canadian Business Corporations Act · 57
Capital · 3, 48, 58, 93, 99, 108
Capital Gains · 93, 99, 108
Cargo Flights · 17
Caribbean Basin Initiative (CBI) · 10, 11
Caribbean Market Facts · 14
Guide to Investing in Trinidad & Tobago
Caribcan · 12
CARICOM · 8
CARICOM Goods · 67
CARICOM/Republic Of Colombia Agreement · 13
CARICOM/Republic Of Venezuela Agreement · 12
Carnival · 56, 118
Charitable Donations · 98
Christmas Day · 56
Circumstances Under Which Licences Are Required ·
65
Climate · 3
Close Companies · 92
Collection Of Tax And Penalties · 105
Commercial And Industrial Areas · 15
Commercial Practices · 118
Companies Act, 1995 · 57
Constructing Properties · 69
Construction Incentives · 86
Copyright · 80
Corporate Tax Rates · 100
Corporate Taxes · 92
Cost Of Living · 114
Cruise Shipping · 41
Cuba/Trinidad and Tobago Agreement · 14
Cultural Events · 118
Cultural Norms · 118
Culture · 3
Customs And Excise Duties · 110
D
Depreciation · 94, 97
Direct
Flights · 1
Direct Flights · 17
Direct Television · 20
Disputes And Appeals · 91
Dividends · 92, 93, 98, 102, 108
Double Taxation Relief And Tax Treaties · 93, 105
Driver’s Permit · 116
E
Economic Trends · 21
Eco-Tourism · 117
Education · 2, 52, 62, 112
Educational System · 112
Electricity Rates · 119
151
INDEX
Employees' Remuneration · 98
Employment Income · 108
Environmental Issues · 44
ESTABLISHING A BUSINESS · 57
Ethnic Groups · 1, 5
Exchange Fluctuations · 94
Exchange Rate Stability · 27
Exempt Income · 94
Expatriate Living, Culture And Tourism · 1, 112
Exporting · 67
Exports · 1, 7, 62
Exports And Imports · 7
F
Financial Statements · 60
Financial System · 46
Food Processing Industries · 37
Foreign Currency Accounts · 47
Foreign Missions · 129, 130, 131
Formation and Start-up costs · 96
Forms of Business · 57
Free Zones Act · 85, 137
Free Zones Company · 85, 86, 137
G
GDP · 1, 2
Geographical Indications · 80
Government Ministries And Key Agencies · 138
Government’s Priorities, Role And Objectives · 27
Groups Of Companies · 96, 99
H
Health Certificate · 68, 117
Health Surcharge · 63, 64
History · 3
Holidays · 56
Honorary Consuls · 134
Hotel Industry · 106
Hotel Room Tax · 111
Housing · 86, 114
Housing Act Exemptions · 86
I
Import And Export Procedures · 66
Import Duty Concessions · 83
Importing · 66, 115
Guide to Investing in Trinidad & Tobago
Importing A Car Into Trinidad And Tobago · 115
Imports · 1, 7, 8
Income Tax · 63, 64, 66, 86, 87, 90, 94, 95
Incorporation Procedures · 59
Industrial Buildings · 95
Industrial Designs · 79
Industrial Property · 87
Inflation · 1, 25
Information Services · 43
Insurance Premium Tax · 111
Intangibles · 95
Intellectual Property · 2, 10, 77
Interest · 46, 47, 92, 96, 103
Interest Rates · 46
International Associations · 8
INTERNATIONAL ORGANIZATIONS · 135
International Schools · 113
Internet Access · 123
Inventory Valuation · 93
Investing In Trinidad And Tobago · 65
Investment And Development Agencies · 136, 137
Investment Facilitation · 43
Investment Incentives · 83
Investment Opportunities · 37
Investment Promotion · 65
J
Joint Ventures · 93
L
Labour · 1, 52
Labour Exchange · 56
Labour Force · 1, 53
Land · 3, 66, 68, 95, 117, 138
Language · 5
Layout Designs · 80
Legal Expenses · 98
Licensing Office · 116
Lome Convention · 10, 68
Loss Relief · 87, 108
M
Machinery and Equipment · 94
Main Trading Partners · 1, 8
Management · 44, 97, 103
Marine Industries · 39
Media · 19
Medical Facilities · 112
152
INDEX
Metals Industry · 38
Minimum Wages · 53
Miscellaneous Information · 119
Mortgage Interest · 109
Mutual Funds · 48, 49
N
Name Search · 59
Name Search/ Name Reservation · 59
National Insurance, Income Tax And Health Surcharge
· 63
Network Of Support Services · 43
New Plant Varieties · 81
Newspapers · 19
Non-resident Companies · 92
O
Obtaining Commercial Property · 69
Occupational Safety and Health · 56
Office Space · 69
Other Construction Tax Incentives · 86
Overtime Remuneration · 53
P
Parliament, House Of Representatives And The Senate
· 51
Partnerships · 57
Passports · 73, 75, 76, 77
Patents · 79
Payment Of Tax · 102
Penalties And Interest · 92
Personal Allowances · 109
Personal Tax Rates · 105, 109
Petrochemical Industry · 29, 31
Petroleum Industry · 29, 30
Petroleum Operations · 106
Plant and Machinery · 67
Political System · 51
Ports · 18
Postal Services · 123
Powers Of The Board Of Inland Revenue · 90
Principal Taxes · 89
Private companies · 57
Procedures For Incorporating A Company In Trinidad
And Tobago · 58
public company · 57
Guide to Investing in Trinidad & Tobago
R
Radio · 20
Raw Materials · 67
Real Estate Taxes · 111
Real GDP Growth · 1
Registering For Value Added Tax (VAT) · 61
Registration Fees · 59
Regulation · 83
Religion · 5, 6
Reorganisations · 101
Repairs and Maintenance · 97
Resident Companies · 92
Resident Status · 73, 74
Retrenchment And Severance Benefits Act · 55
Revaluation of Assets · 96
Road Traffic Licence And Vehicle Transfer Tax · 111
Roads · 19
Role Of The President And The Prime Minister · 51
S
Safety and Health · 56
Safety Tips · 118
Salaries And Wages · 105
Satellite Communications · 123
Schools · 1, 52, 112, 113
Sea Ports · 18
Share Capital · 58
Sightseeing · 119
Social Security · 56, 63, 110
Social Security Contributions · 110
Sole proprietorships · 57
Special Classes Of Company · 86
Special Tax Allowances For Exporters · 87
Special Tax Treatment Of Foreign Nationals · 109
Sporting Facilities · 117
Stamp Duty On Conveyance Of Real Estate · 110
Stock Market · 48, 49
Support Services · 43
T
Tax Payments, Returns And Appeals · 110
Tax Returns · 91
Tax Treaties · 90, 93, 105
Tax Treatment Of Losses · 99
Tax Treatment Of Partnerships · 93
Tax Treatment Of Specific Industries · 106
Tax Year · 91
Taxable Income · 93, 107, 109
153