Finance Ministry reminds of measures to start January 1, 2022

The content originally appeared on: Trinidad and Tobago Newsday

Finance Minister Colm Imbert – Photo courtesy Office of the Parliament

THE Finance Ministry on Friday reminded members of the public about 16 measures announced in the 2022 budget that will take effect from January 1 (New Year’s Day). The reminder was posted on the ministry’s Twitter account.

These were:

– a five per cent reduction in tax rate for significant exporters of goods for three years

– 50 per cent tax exemption on the first $100,000 of chargeable income for new companies whose core business activities are digitisation and technology solutions

– five per cent reduction in tax rate for three years for small, medium enterprise (SME) companies whose core business is technology solutions and digitisation

– full tax holiday for the first five-year period to new SMEs listing on the TT Stock Exchange

– $8,000 fine for overweight trucks

– five per cent reduction in tax rate for the manufacturing sector for two years on qualifying projects

– reduction in the rate of withholding tax to eight per cent on distribution made and three per cent where such distribution is made to a parent company, subsequent to the amendment of the Income Tax Act

– increasing the limit to $30,000 on mortgage interest paid by first-time homeowners for five years from the date of acquisition

– increase in relief granted on approved pension and annunity plans to $60,000

– 100 per cent exemptions on VAT, motor vehicle tax and customs duty on imported battery-powered electric vehicles no more than two years old

– 100 per cent exemptions on VAT and customs duty on specified therapy equipment for the hearing impaired, visually impaired and physically disabled

– ten per cent increase in utility rebates on bills $300 or less

– 100 per cent exemptions on VAT and customs duty on all remaining computer hardware, software and peripherals

– research and development capital allowance (tax relief) of up to 40 per cent of expenditure (in calculating taxable profits incurred by companies in research and development)

– tax credit of 30 per cent up to $500,000 for companies that invest in carbon capture and storage enhanced oil recovery

– 150 per cent tax allowance of up to $1 million on corporate sponsorship to heritage properties under the oversight of the National Trust.