- Zero percent Corporation Tax, Green Fund and Business Levy for the first five (5) years from listing on the TTSE, i.e. applicable for Year 1 through Year 5;
- Fifty percent reduction on Corporation Tax, Green Fund and Business Levy for the next five (5) years from listing on the TTSE, i.e. applicable for Year 6 through Year 10.
Frequently Asked Questions
Eligibility for Tax Exemption
How do SMEs qualify for the new tax incentives?
For a company to qualify for tax incentives under the Corporation Tax Act and the Miscellaneous Taxes Act, it must meet the definition of a “SME Listed Company” , under the Finance Act (16 of 2021) Chapters 8 and 11 amending both the Corporation Act and the Miscellaneous Tax Act, it states that:
“SME listed company” means a Small and Medium Enterprise company listed on the Trinidad and Tobago Stock Exchange, namely a company whose—
(minimum issued share capital is five million dollars and maximum issued share capital does not exceed fifty million dollars following the initial public offering;
(b) minimum and maximum capital base comprises of issued share capital only and does not include retained earnings and accounts transferred from such issued share capital or account;
(c) minimum of twenty five unconnected shareholders own a total of at least thirty per cent of the new issued share capital of the company; and
(d) capital is raised with the issuance of an initial public offering to be followed by a listing on the Trinidad and Tobago Stock Exchange no more than sixty days after allotment of the issue.”
If the SME is suspended from trading on the SME Market, does the SME still qualify for the remaining fiscal incentives if the tax holiday has not yet expired?
The SME must be listed in order to claim the tax incentive. For a company to qualify for tax incentives under the Corporation Tax Act and the Miscellaneous Taxes Act, it must meet the definition of a “SME Listed Company” , under the Finance Act (16 of 2021) Chapters 8 and 11 amending both the Corporation Act and the Miscellaneous Tax Act, it states that:
“SME listed company” means a Small and Medium Enterprise company listed on the Trinidad and Tobago Stock Exchange, namely a company whose—
(a) minimum issued share capital is five million dollars and maximum issued share capital does not exceed fifty million dollars following the initial public offering;
(b) minimum and maximum capital base comprises of issued share capital only and does not include retained earnings and accounts transferred from such issued share capital or account;
(c) minimum of twenty five unconnected shareholders own a total of at least thirty per cent of the new issued share capital of the company; and (d) capital is raised with the issuance of an initial public offering to be followed by a listing on the Trinidad and Tobago Stock Exchange no more than sixty days after allotment of the issue.”
(d) capital is raised with the issuance of an initial public offering to be followed by a listing on the Trinidad and Tobago Stock Exchange no more than sixty days after allotment of the issue.”
What is the procedure to access the fiscal incentives after listing?
The “SME Listed Company” will file a Tax Return indicating its eligibility for the tax exemption along with a Confirmation Letter from the Trinidad and Tobago Stock Exchange. The Confirmation Letter will indicate that the “SME Listed Company” has met all the requirements for listing on the Stock Exchange.
