Fiscal
FISCAL INCENTIVES ACT
CHAPTER 85:01

LAWS OF TRINIDAD AND TOBAGO

Act
22 of 1979
Amended by
*11 of 1984
14 of 1994
21 of 2005
2 of 2006
17 of 2007
2 of 2012

*See Note on page 2

Current Authorised Pages
Pages Authorised

(inclusive) by L.R.O.
1–8 ..
9–20 ..
21–26 ..
27–28 ..

L.R.O. UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

2 Chap. 85:01 Fiscal Incentives

LAWS OF TRINIDAD AND TOBAGO

Note on Subsidiary Legislation
This Chapter contains no subsidiary legislation.

Note on Omissions
The following Subsidiary Legislation made under the Act are omitted:
(a) Orders made under section 4 (Declaring Approved Products).
(b) Orders made under section 6 (Declaring Relief from Income Tax on

Dividends of Approved Products).
(c) Orders made under section 10 (Declaring an Enterprise to be an Approved

Enterprise).
(d) Orders made under section 11 (with respect to Orders made under section 10).
(e) Orders made under section 12 (with respect to an Approved Enterprise).

N.B. For references to the above Orders see the Current Edition of the Consolidated
Index of Acts and Subsidiary Legislation.

Note on Act No. 11 of 1984
See section 12 of Act No. 11 of 1984 which amends section 16 of the Income Tax (In Aid of
Industry) Act (Ch. 85:04) with respect to concessions under the Fiscal Incentives Act.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

Fiscal Incentives Chap. 85:01 3

LAWS OF TRINIDAD AND TOBAGO

L.R.O.

CHAPTER 85:01

FISCAL INCENTIVES ACT
ARRANGEMENT OF SECTIONS

SECTION

1. Short title.
2. Interpretation.
3. Local value added.

PART I
APPROVED PRODUCTS AND BENEFITS

4. Approved product.
5. Benefits to be granted.
6. Dividends out of profits from approved products.
7. Interest not exempt from tax.

PART II
APPROVED ENTERPRISES

8. Application for benefits.
9. Classification of enterprise.
10. Order may declare enterprise to be an approved enterprise.
11. Contents of Order.
12. Enterprise to maintain records and submit returns.
13. Minister to appraise.
14. Revocation of Order.
15. Termination of Order.
16. Effect of revocation and termination of Order.
17. Power of Minister where there is delay in the commencement of

construction or manufacture.

PART III

IMPORTATION OF GOODS BY APPROVED ENTERPRISE
18. Minister may issue licence to import plant, equipment, machinery, etc.
19. Minister may issue licence to enclave enterprise to import plant,

equipment, etc.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

4 Chap. 85:01 Fiscal Incentives

LAWS OF TRINIDAD AND TOBAGO

ARRANGEMENT OF SECTIONS—Continued
SECTION

20. Approved enterprise may import plant, equipment, etc., free of
Customs duty.

21. Approved enterprise to keep record of articles imported free of
Customs duty.

22. Restriction on sale or other disposal of certain articles.

PART IV
CORPORATION TAX PROVISIONS

23. Deduction for capital expenditure.
24. Losses may be carried forward for the purpose of set-off.
25. Allowances to be taken into account in computing profits for

purpose of relief from corporation tax.
25A. (Repealed by Act No. 2 of 2006).
26. Profits for accounting period to be apportioned.
27. Allocation of outgoings and expenses.

PART V
MISCELLANEOUS

28. Restriction on use of factory.
29. Transitional.
30. President or Minister to have absolute discretion.
31. Regulations.
32. Application of Act.

FIRST SCHEDULE.
SECOND SCHEDULE.
THIRD SCHEDULE.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

Fiscal Incentives Chap. 85:01 5

LAWS OF TRINIDAD AND TOBAGO

L.R.O.

CHAPTER 85:01

FISCAL INCENTIVES ACT

An Act to provide for fiscal incentives to Industry in accordance
with the Agreement on Harmonisation of Fiscal Incentives
to Industry.

[24TH SEPTEMBER 1973]

1. This Act may be cited as the Fiscal Incentives Act.
2. (1) In this Act—
“approved enterprise” means an enterprise so declared by Order

of the President under section 10(1) for the purpose of
conferring a benefit under this Act;

“approved product” means a product or service so declared by
Order of the President under section 4(1) or section 10(1)(b);

“benefit” means any relief granted to an approved enterprise
under this Act;

“category” means any category specified in section 9(2);
“Common Market” means the Common Market established by

the Annex to the Treaty;
“company” means a body corporate incorporated under the laws

of Trinidad and Tobago;
“Comptroller”, in Part III and Part IV, means the Comptroller of

Customs and Excise;
“construction day” means the day specified in the Order made

under section 10 being a day not later than twelve months
from the date on which the applicant for the status of an
approved enterprise is notified that his application has been
granted or such other day as the President may specify by
Order under section 11(2);

“domestic market” means the Trinidad and Tobago market;
“enclave enterprise” means an enterprise whose product is

produced exclusively for export to countries outside the
Common Market;

22 of 1979.

Commencement.

Short title.

Interpretation.
[17 of 2007
2 of 2012].

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

6 Chap. 85:01 Fiscal Incentives

LAWS OF TRINIDAD AND TOBAGO

“enterprise” means a company engaged or about to engage in
an industry;

“established product” means a product the domestic production
of which supplies at least sixty per cent of the domestic
market for that product;

“factory” includes all buildings and structures within the same
curtilage used for—

(a) the housing of machinery, plant or apparatus of
any description for the manufacture of any
approved product or the generation of power for
such manufacture;

(b) the storage of any raw materials, fuel or stores
necessary for the manufacture of the approved
product;

(c) the storage of any approved product prior to the
time at which the property in such product passed
from the approved enterprise to any other person;

(d) the proper administration of the business of the
approved enterprise in relation to the manufacture
of the approved product and the sale thereof; or

(e) canteens, restrooms, recreation rooms,
lavatories, baths and wash rooms for workers
employed by the approved enterprise in the
manufacture of the approved product or in any
process incidental to such manufacture;

“former enactments” means the enactments specified in the
Third Schedule that are repealed and replaced by this Act;

“group I enterprise” means an enterprise with respect to whose
product the local value added is at least fifty per cent;

“group II enterprise” means an enterprise with respect to whose
product the local value added is at least twenty-five per cent
but less than fifty per cent;

“group III enterprise” means an enterprise with respect to whose
product the local value added is at least ten per cent but less
than twenty-five per cent;

Third Schedule.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

Fiscal Incentives Chap. 85:01 7

LAWS OF TRINIDAD AND TOBAGO

L.R.O.

“highly capital intensive enterprise” means subject to
subsection (2), an enterprise with respect to whose product
the Minister is satisfied that the capital investment therein is
not less than fifty million dollars in the currency of Trinidad
and Tobago or fifty million dollars in the currency of the
Eastern Caribbean Member States, whichever is the greater;

“industry” means a manufacturing or processing industry and
includes—

(a) the making of films;
(b) the following operations or any of them, but

only where they form part of an integrated
processing operation:

(i) the reproduction of films or sound
recording;

(ii) the making of sound recording;
(iii) deep-sea fishing or shrimping; and
(c) information services and processing;
“local value added” has the meaning assigned to it by section 3;
“Member State” means a member of the Common Market that is

a party to the Agreement for the Harmonisation of Fiscal
Incentives to Industry;

“national” means a person who is a citizen of a Member State and
includes a person whose connection with such a State
entitles him to be regarded as belonging to, or being a native
or resident of the State for the purposes of the laws relating
to immigration for the time being in force;

“production day” means the day specified in the Order made
under section 10, being a day not later than thirty months
from the date on which the applicant for the status of an
approved enterprise is notified that his application has been
granted or such other day as the President may specify by
Order under section 11(2);

“sale” means the proceeds of sale ex-factory of an
approved product;

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

8 Chap. 85:01 Fiscal Incentives

LAWS OF TRINIDAD AND TOBAGO

“tax holiday period” means the period mentioned in
section 10(1)(c) during which benefits may be conferred on
an approved enterprise;

“Treaty” means the Treaty establishing the Caribbean Community
and Common Market done at Chaguaramas on 4th July 1973.

(2) In determining whether an enterprise is a highly
capital intensive enterprise, the Minister may include or exclude
such capital investment as he thinks fit and in so doing may have
regard to the period of time over which and the purposes for
which, the capital investment was made.

3. (1) The local value added is the amount (expressed as a
percentage of the total sales of an approved product) by which
the amount realised from the sales of that product over a
continuous period of twelve months exceeds the aggregate
amount of the following:
(a) the value of imported raw materials, imported

content of components and parts thereof,
imported fuels and services;

(b) wages, salaries or both paid during the twelve-
month period to persons who are not nationals;

(c) profits distributed or remitted, directly or
indirectly, to persons who are not resident in a
Member State;

(d) interest, management charges and other income
payments or any of them accruing, directly or
indirectly, to persons who are not resident in a
Member State, other than a branch or an agency
in a Member State of a bank not resident in a
Member State;

(e) depreciation in the value of imports of plant,
machinery and equipment, or any of them.

(2) For the purposes of subsection (1), the local value
added shall be weighted by the wages or salaries paid to nationals

Local value
added.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

Fiscal Incentives Chap. 85:01 9

LAWS OF TRINIDAD AND TOBAGO

L.R.O.

of a Member State expressed as a percentage of the total sales of
the approved product and calculated in accordance with the
undermentioned formula:

V (100 +W) , where—
100

“V” represents the local value added expressed as a
percentage of the total sales of the approved product;

“W” represents the wages and salaries paid to
nationals expressed as a percentage of the total
sales of the approved product.

(3) For the purposes of estimating or determining the
local value added, the Minister shall determine the twelve-month
period referred to in subsection (1).
(4) In this section “imported” means imported from
outside of the Common Market.

PART I

APPROVED PRODUCTS AND BENEFITS
4. (1) Without prejudice to section 10(1)(b), the President
may by Order declare a product to be an approved product.
(2) Any product declared to be an approved product
under section 10(1)(b) pursuant to an application by an enterprise
for the grant of a benefit under this Act is an approved product for
all the purposes of this Act as if it had been so declared under
subsection (1).
(3) No product listed in the First Schedule shall be the
subject of an Order under subsection (1) or under section 10(1)(b).

5. (1) Subject to this Act, any one or more of the following
benefits may be granted to an approved enterprise in respect of an
approved product:
(a) total or partial relief from—
(i) corporation tax;
(ii) Customs duty;
(b) loss-offset in accordance with section 24.

Approved
product.

First Schedule.

Benefits to be
granted.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

10 Chap. 85:01 Fiscal Incentives

LAWS OF TRINIDAD AND TOBAGO

(2) An approved enterprise may not be granted—
(a) loss-offset under subsection (1) unless it has

been granted relief from corporation tax under
this Act; and

(b) relief from corporation tax under this Act in
respect of—

(i) subject to subsections (3) and (4), an
established product;

(ii) an approved product during such time as
an export allowance under section 8 of
the Corporation Tax Act, is allowed in
computing the chargeable profits of the
enterprise; or

(iii) profits accruing before production day.
(3) Where in the opinion of the President the public
interest so requires an approved enterprise may be granted relief
from corporation tax under this Act although sixty per cent or
more of the domestic market for the product is already supplied
out of domestic production.
(4) Nothing in subsection (2)(b)(1) applies to an enclave
enterprise and the President may exclude a highly capital
intensive industry from the operation of that subsection if he is
satisfied that it is in the public interest to do so.

6. (1) Where a benefit is granted to an approved enterprise
in respect of an approved product, the President may, subject to
section 16 and to such conditions as he may think fit, grant total or
partial relief from income tax on dividends or other distributions,
other than interest, out of profits or gains derived from the
manufacture of the approved product during the tax holiday period.
(2) Where a shareholder or his nominee is not resident
in a Member State the relief mentioned in subsection (1) shall
apply to so much of the tax as exceeds the tax liability in the
country in which the recipient is resident.

Ch. 75:02.

Dividends out
of profits from
approved
products.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

Fiscal Incentives Chap. 85:01 11

LAWS OF TRINIDAD AND TOBAGO

L.R.O.

(3) Dividends and other distributions made out of profits
or gains accruing to an approved enterprise from the manufacture
of an approved product during its tax holiday period shall not be
subject to any limitation as to the time within which those
dividends are payable if a special account showing—
(a) the dividends or other distributions made by the

approved enterprise during the relevant
period; and

(b) the profits made during the tax holiday period,
is maintained by the enterprise to the satisfaction of the Board of
Inland Revenue.
(4) In subsection (3), “relevant period” means the period
beginning with the commencement of the tax holiday period of
the approved enterprise and ending with the payment of the last
dividend payable out of the profits or gains accruing during
that period.

7. Interest, in whatever form, on loan capital and any other
borrowings of an approved enterprise whether in the form
of overdraft, debenture or any other form when paid to the
recipient shall not be exempt from the payment of income tax or
corporation tax.

PART II

APPROVED ENTERPRISES

8. (1) An enterprise that is desirous of being granted a
benefit under this Act may apply in writing to the Minister in
accordance with subsection (2).
(2) An application under subsection (1) shall be made in
the form prescribed and shall specify—
(a) whether the enterprise is resident in Trinidad

and Tobago;
(b) the locality or proposed locality of the factory in

which the enterprise is manufacturing or intends
to manufacture the product;

Interest not
exempt from
tax.

Application for
benefits.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

12 Chap. 85:01 Fiscal Incentives

LAWS OF TRINIDAD AND TOBAGO

(c) the day on which construction of the factory of the
enterprise commenced or is likely to commence;

(d) the day on which commercial production in the
factory of the enterprise commenced or is likely
to commence;

(e) the product which the enterprise is manufacturing
or intends to manufacture;

(f) all information, supported by documentary
evidence, which the Minister may consider
relevant for the purposes of estimating or
determining the local value added of the
enterprise in the manufacture of the product and
to the appraisal of its application.

(3) An enterprise is not eligible for the grant of the
status of an approved enterprise unless it is resident in Trinidad
and Tobago and an enterprise is so resident only where the
central management and control of its affairs are situated in
Trinidad and Tobago.

9. (1) Where an applicant is eligible for the grant of the
status of an approved enterprise, the Minister shall consider every
application made under section 8 for the purpose of determining—
(a) whether the enterprise may be classified into any

of the categories referred to in subsection (2); and
(b) whether to make a recommendation to the

President for the grant of the status of an approved
enterprise on the applicant.

(2) Where the Minister so determines (having regard to
the public interest) he may classify the enterprise to which the
application relates into any one of the following categories:
(a) group I enterprise;
(b) group II enterprise;
(c) group III enterprise;
(d) enclave enterprise; or
(e) highly capital intensive enterprise.

Classification of
enterprise.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

Fiscal Incentives Chap. 85:01 13

LAWS OF TRINIDAD AND TOBAGO

L.R.O.

(3) No enterprise may be classified into more than one
category at any one time but on an appraisal under section 13, an
approved enterprise may be re-classified into a different category.
(4) In classifying an enterprise into any of the categories
group I to III, no regard shall be had to the local value added in
respect of any product listed in the First Schedule.
(5) Subject to subsection (6), an enterprise shall not be
classified in respect of a product for which it or any of its
associates was granted exemption from corporation tax under the
former enactments.
(6) Where, at the commencement of this Act, an enterprise
enjoys under the former enactments any relief that corresponds to a
benefit under this Act for a period that is less than the maximum tax
holiday period that may be granted to an approved enterprise the
Minister may, subject to section 10(4), treat the application of such
an enterprise, if eligible, in accordance with this section.
(7) Nothing in subsection (6) shall apply to—
(a) an established product; or
(b) an associate,
of such an enterprise.
(8) In this section, “associate” means—
(a) an enterprise that is the parent, subsidiary or

affiliate of the enterprise in respect of which an
application is made under section 8; or

(b) an individual who has a controlling interest in
that enterprise.

10. (1) Where pursuant to section 9 an enterprise is
classified, the President may, if he is satisfied that it is in the
public interest to do so, by Order—
(a) declare the enterprise to be an approved

enterprise in respect of the product, with effect
from the date specified in the Order;

(b) declare the product to be an approved product
unless it has already been so declared under
section 4(1);

First Schedule.

Order may
declare
enterprise to be
an approved
enterprise.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

14 Chap. 85:01 Fiscal Incentives

LAWS OF TRINIDAD AND TOBAGO

(c) confer on the approved enterprise in respect of
its approved product for a period not exceeding
that specified in the Second Schedule any or all
of the benefits enumerated at section 5(1);

(d) grant to the shareholders of such an enterprise
the relief mentioned in section 6.

(2) On the expiration of the tax holiday period by effluxion
of time, the President may, if he is satisfied that it is in the public
interest to do so, by Order extend the tax holiday period for any
further period which when aggregated with the expired tax holiday
period does not exceed the period specified in the Second Schedule.
(3) For the purposes of determining whether to make an
Order under subsection (1), the President shall take into account—
(a) the number of enterprises manufacturing or

about to manufacture the product;
(b) the benefits already enjoyed by the enterprise

and the manufacturing process undertaken or
about to be undertaken by it;

(c) the output or anticipated output of the enterprise;
(d) such other matters as he may consider relevant.
(4) The tax holiday period that may be granted to an
enterprise classified pursuant to section 9(2) may not exceed the
excess of the greatest period that may be obtained under this Act
for the category in which the enterprise is classified over the
period during which the enterprise was entitled to any relief
under the former enactments.

11. (1) An Order made under section 10(1) shall, in respect
of each approved enterprise, specify the construction day or the
production day or both such days and may—
(a) declare that in its application it shall be restricted

to a part of a factory, to a particular grade, quality,
description, type or classification of product and
to a particular process, or any of them;

(b) impose continuing obligations;

Second
Schedule.

Contents of
Order.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

Fiscal Incentives Chap. 85:01 15

LAWS OF TRINIDAD AND TOBAGO

L.R.O.

(c) provide for its revocation in any case of breach
or of non-compliance with its requirements, or
any of them.

(2) The President may, if he thinks fit, by Order—
(a) vary the construction day or the production day

or both such days;
(b) vary the description of an approved product;
(c) specify any change in the factory site of an

approved enterprise.

12. An approved enterprise on which a benefit has been
conferred under this Act shall in addition to any other obligation
that may be imposed on it by Order of the President under
section 10(1)—
(a) maintain such records and keep such accounts;
(b) submit to the Minister such returns of its

performance,
as the Minister may direct.

13. (1) The Minister may at any time he considers
appropriate and shall on the expiration of three years from the
production day and thereafter at intervals of two years until the
cessation of all benefits under this Act appraise the performance
of an approved enterprise for the purpose of determining whether
the approved enterprise is maintaining its classification.
(2) Where on an appraisal an approved enterprise is
found not to be maintaining its classification the Minister shall
decide whether it may be reclassified into any of the other
categories and, if it can be so reclassified shall as soon as possible
reclassify it accordingly and shall in any event notify the
approved enterprise of his decision.
(3) Where on an appraisal made before the expiration of
three years from the production day an approved enterprise—
(a) is found not to be maintaining its

classification; and
(b) is not reclassified into any of the other categories,

Enterprise to
maintain records
and submit
returns.

Minister to
appraise.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

16 Chap. 85:01 Fiscal Incentives

LAWS OF TRINIDAD AND TOBAGO

the Order respecting that enterprise shall, with effect from the
date of the notice given under subsection (2), be deemed to be
revoked for the purpose of relief under section 5(1)(a).
(4) Where on an appraisal made at the expiration of
three years from the production day an approved enterprise—
(a) is found to be maintaining its classification; or
(b) is reclassified into any other category,
that enterprise shall, for the purposes of this Act, continue to be
an approved enterprise, but subject to the terms and conditions of
an Order made under section 10(1) or any extension thereof or to
a fresh Order made under subsection (5).
(5) Where as a result of the reclassification of an
approved enterprise into a different category, the tax holiday
period for which it had previously qualified is no longer
applicable, the President shall by Order vary the tax holiday
period so as to coincide with the maximum period allowable to
an enterprise in the category into which it has been reclassified or
to such lesser period as the President may determine.

14. The President may by Order—
(a) revoke an Order made under section 4(1); or
(b) revoke an Order made under section 10(1) or

revoke the Order with respect to an approved
product where an approved enterprise—

(i) ceases to operate in respect of its
approved product during the period of
three years from production day;

(ii) contravenes any of the provisions of this
Act or the Regulations or any terms or
conditions of the Order; or

(iii) fails to comply with the requirements of a
notice issued under section 17.

15. (1) The President may by Order—
(a) terminate an Order made under section 4(1); or

Revocation of
Order.

Termination of
Order.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

Fiscal Incentives Chap. 85:01 17

LAWS OF TRINIDAD AND TOBAGO

L.R.O.

(b) terminate an Order made under section 10(1)
or terminate the Order with respect to an
approved product—

(i) subject to subsection (2), on an
application in writing, through the
Minister, by the approved enterprise made
before the expiration of the period of
three years from production day;

(ii) where on an appraisal made on or after the
expiration of the period of three years
from production day an enterprise is found
not to be maintaining its classification and
is not reclassified into any of the other
categories listed in section 9(2);

(iii) where after the expiration of the period of
three years from production day an
approved enterprise ceases to operate in
respect of its approved product.

(2) An Order may not be terminated by the President
upon an application made by an approved enterprise under
subsection (1)(b)(i) unless the President is satisfied that the
approved enterprise is unable to continue operations because of
circumstances over which it has no control.
(3) In the case referred to in subsection (1)(b)(iii), the
Order for termination may be made to have effect from the last
occasion on which the approved enterprise was found to be
maintaining its classification in any category.

16. (1) Subject to section 24(3), where an Order—
(a) is deemed to be revoked in accordance

with section 13(3); or
(b) is revoked pursuant to section 14,
this Act shall be deemed never to have applied to the enterprise
and the enterprise shall, notwithstanding anything contained in the
Income Tax Act or the Customs Act, pay to the Board of Inland

Effect of
revocation and
termination of
Order.

Ch. 75:01.
Ch. 78:01.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

18 Chap. 85:01 Fiscal Incentives

LAWS OF TRINIDAD AND TOBAGO

Revenue and to the Comptroller of Customs and Excise any sums
which, but for the provisions of sections 5(1)(a) and 20, would
have been payable as corporation tax or Customs duty, as the case
may be.
(2) Except as is otherwise expressly provided for in this
Act where an Order is terminated under section 15 all benefits
granted to an approved enterprise and all relief from income tax
on dividends or other distributions under section 6(1) cease as
from the date of the Order for termination or in any case provided
for by section 15(3) from the date on which the Order for
termination is expressed to have effect.
(3) Where an Order—
(a) is deemed to be revoked in accordance with

section 13(3); or
(b) is revoked pursuant to section 14,
all relief from income tax on dividends or other distributions
under section 6(1) is lost and tax is payable to the Board of Inland
Revenue on any such dividend or other distribution whether
made before or after the Order is deemed revoked or is revoked,
as the case may be.
(4) All sums payable under this Act may be recovered
summarily as a civil debt.

17. Where an approved enterprise fails or neglects—
(a) to commence construction of the factory on or

before construction day; or
(b) to commence the manufacture at the factory of

an approved product in marketable quantities on
or before production day,

the Minister may issue a notice in writing requiring the enterprise
within thirty days of the date of such notice either—
(i) to commence construction of the factory

or the manufacture of the approved
product in marketable quantities, as the
case may be; or

Power of
Minister where
there is delay
in the
commencement
of construction
or manufacture.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

Fiscal Incentives Chap. 85:01 19

LAWS OF TRINIDAD AND TOBAGO

L.R.O.

(ii) to prove to the satisfaction of the Minister
that the failure or neglect is attributable
to a cause beyond its control and that
there is reasonable prospect of its
commencing construction of the factory
or manufacturing the approved product
in marketable quantities, as the case may
be, within such time as the Minister
considers reasonable.

PART III
IMPORTATION OF GOODS BY APPROVED ENTERPRISE
18. (1) The Minister may, during the tax holiday period of
an approved enterprise, issue to that enterprise a licence to import
from outside of the Common Market any plant, equipment,
machinery, raw material or any component (except spare parts
and replacement parts) where he is satisfied that the plant,
equipment, machinery, raw material or the component—
(a) is required for use in the manufacture of an

approved product; and
(b) is unavailable from the production of a

Member State.
(2) Subsection (1) does not apply to an enclave
enterprise and a licence issued under that subsection or under
subsection (3) shall be subject to such terms and conditions as the
Minister considers appropriate.
(3) Notwithstanding anything to the contrary in
subsection (1), the Minister may during the tax holiday period of
an approved enterprise issue to that enterprise a licence—
(a) to import from outside of the Common Market

the articles specified in subsection (1), or any of
them, where such articles are available from the
production of a Member State but do not satisfy
the area origin criteria;

(b) to import from within the Common Market the
articles referred to in paragraph (a) or any of

Minister may
issue licence to
import plant,
equipment,
machinery, etc.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

20 Chap. 85:01 Fiscal Incentives

LAWS OF TRINIDAD AND TOBAGO

them, even though they do not satisfy the area
origin criteria.

(4) For the purposes of subsection (3), “area origin
criteria” means those rules in force under the Treaty for
determining the eligibility of goods for duty-free treatment in
trade in the Common Market, where such goods originate within
the Common Market.
(5) In determining whether an article is available from
the production of a Member State the Minister shall take into
account the price at which the article can be obtained from a
Member State and whether—
(a) the article is manufactured in accordance with the

accepted standards prescribed by the Bureau of
Standards or is certified by a competent Regional
Authority as being of acceptable quality in terms
of the specifications of the approved enterprise;

(b) the regularity of supplies can be guaranteed;
(c) the capacity of the facilities in the Member State

for producing the article is adequate to supply
the needs of the approved enterprise; and

(d) the facilities for constructing or producing the
article in the Member State, if any, are capable
to construct or produce the article.

19. (1) The Minister may, during the tax holiday period of an
enclave enterprise, issue to that enterprise a licence to import from
outside of the Common Market any plant, equipment, machinery,
raw material or any component (except spare parts and replacement
parts) for a period not exceeding that specified in the Second
Schedule if the conditions specified in section 20 are satisfied.
(2) A licence issued under subsection (1) shall—
(a) be subject to such terms and conditions as the

Minister considers appropriate; and
(b) where the Minister is satisfied that the raw

material or the component is available from a

Minister may
issue licence to
enclave
enterprise to
import plant,
equipment, etc.

Second
Schedule.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

Fiscal Incentives Chap. 85:01 21

LAWS OF TRINIDAD AND TOBAGO

L.R.O.

Member State, in addition to any other
conditions which he may impose, specify the
amount of the raw material or the component
which the enclave enterprise may import.

20. (1) Notwithstanding the provisions of section 56 of the
Customs Act, an approved enterprise, on receipt of a licence issued
pursuant to section 18(1) or (3) or to section 19(1), may import
such plant, equipment, machinery, raw material or component
(except spare parts and replacement parts) free of Customs duty if
the Comptroller is satisfied that the plant, equipment, machinery,
raw material or the component is intended for use—
(a) in constructing, altering, reconstructing or

extending the approved enterprise;
(b) in equipping the enterprise for the purpose of

manufacturing its approved product; or
(c) in manufacturing its approved product.
(2) No licence issued under section 18 or 19 may
authorise the importation of duty free articles after the expiration
of the tax holiday period.

21. An approved enterprise which imports any article in
respect of which it was granted exemption from the payment of
Customs duty by virtue of this Part shall—
(a) keep a record of the articles imported in such

form and containing such particulars as may be
approved or required by the Comptroller;

(b) permit the Comptroller or any person
authorised by him in writing at all reasonable
times to inspect the record and to have access to
any factory or warehouse under its control for
the purpose of—

(i) examining any of the articles referred to
in paragraph (a) which the Comptroller
has reason to believe to be therein; and

(ii) satisfying himself of the accuracy of the
particulars contained in the record;

Approved
enterprise may
import plant,
equipment, etc.,
free of Customs
duty.
Ch. 78:01.

Approved
enterprise to
keep record of
articles
imported free of
Customs duty.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

22 Chap. 85:01 Fiscal Incentives

LAWS OF TRINIDAD AND TOBAGO

(c) cause the articles to be marked with such mark
and in such manner as may be prescribed;

(d) at the end of each calendar year and at such
other times as may be specified by the
Comptroller submit to him an inventory of all
plant, equipment, raw material or component, or
any of them, imported free of Customs duty.

22. (1) Where pursuant to this Part an article is imported by
an approved enterprise free of Customs duty, the article shall not,
before the expiration of ten years from the date on which it was
imported, be sold, given away or otherwise disposed of by the
enterprise except—
(a) where the approved enterprise pays or gives

security to the satisfaction of the Comptroller
for the payment of an amount which, but for the
provisions of this Part would have been
payable; or

(b) with the prior approval in writing of the
Minister, after the expiration of five years from
the date on which the article was imported.

(2) An approved enterprise which contravenes the
provisions of subsection (1) is liable on summary conviction to
a penalty of three times the value of the article the disposal of
which contravened those provisions.
(3) Subject to this Part, the Customs Act shall apply to—
(a) the importation and use of all goods in respect of

which a licence is issued under this Act; and
(b) the exportation of any approved product of an

approved enterprise.
PART IV

CORPORATION TAX PROVISIONS
23. (1) In computing the profits of an approved enterprise for
the purpose of relief from corporation tax under section 5(1)(a)(i),
the enterprise shall be required to claim the allowance for the
exhaustion by wear and tear resulting from the use of its assets in—
(a) the year of income in which the assets were first

put into use by the enterprise; and

Restriction on
sale or other
disposal of
certain articles.

Ch. 78:01.

Deduction for
capital
expenditure.
[14 of 1994
2 of 2006].

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

Fiscal Incentives Chap. 85:01 23

LAWS OF TRINIDAD AND TOBAGO

L.R.O.

(b) the years immediately following the year of
income in which the claim referred to in
paragraph (a) was made.

(1A) A claim for an allowance under subsection (1) may
not be deferred.
(2) Section 8 of the Corporation Tax Act (which provides
for the grant of an export allowance) shall not apply in computing
such of the chargeable profits of an approved enterprise as are
derived from the manufacture of an approved product where the
enterprise is in receipt of any benefits referred to in section 5(1)(a).
24. (1) Notwithstanding section 16 of the Income Tax Act
but subject to subsection (2) of this section, on the expiration of
the tax holiday period of an approved enterprise which
enjoyed a benefit under section 5(1)(b), the net losses incurred by
the enterprise during that period in respect of its approved
product shall—
(a) be carried forward; and
(b) without any limitation as to the amount of the

set-off, be set-off in computing the chargeable
profits of the approved enterprise for the five-
year period immediately following the tax
holiday period.

(2) Nothing in subsection (1) shall apply so as to allow
such set-off against any profits of an approved enterprise derived
otherwise than from the manufacture of an approved product.
(3) Where an Order—
(a) is deemed to be revoked in accordance with

section 13(3); or
(b) is revoked pursuant to section 14,
the enterprise shall be deemed to continue to be an approved
enterprise for the purposes of carrying forward, under subsection (1),
any net losses incurred before the revocation of the Order.
(4) Section 16 of the Income Tax Act shall apply so as to
allow the set-off of any balance of the net losses remaining at the
end of the five-year period.
(5) Notwithstanding anything to the contrary in the Aid to
Pioneer Industries Ordinance (repealed by this Act) any net losses

Ch. 75:02.

Losses may be
carried forward
for the purpose
of set-off.
Ch. 75:01.

Ch. 33. No. 3.
(1950 Ed.).

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

24 Chap. 85:01 Fiscal Incentives

LAWS OF TRINIDAD AND TOBAGO

incurred by an enterprise during a period of tax exemption under
that Ordinance shall be taken into account for the purposes of
computing net losses under this section.
(6) For the purposes of this section “net losses” means
the excess of all losses over all profits or gains made during the
tax holiday period.

25. Where an enterprise was granted a period of tax
exemption under the Aid to Pioneer Industries Ordinance
(repealed by this Act) and allowances for wear and tear of plant,
machinery or buildings fall to be made—
(a) on or after the expiration of that period; and
(b) in respect of such plant, machinery or buildings

purchased or acquired during that period,
such allowances shall be taken into account computing the profits
of the enterprise for the purpose of relief from corporation tax as
though the expenditure incurred in respect of such plant,
machinery or buildings was incurred on the first day of the tax
holiday period granted to the enterprise under this Act.
25A. (Repealed by Act No. 2 of 2006).

26. (1) Where an approved enterprise has been granted total
or partial relief from corporation tax under section 5(1)(a) (i) and
the expiration of the tax holiday period of the enterprise does not
coincide with the end of its accounting period, the profits
accruing from the manufacture of the approved product in the
accounting period during which the tax holiday period ends shall
be apportioned between the parts of the accounting periods which
respectively precede and follow the end of the tax holiday period.
(2) The profits apportioned to that part of the accounting
period which precedes the end of the tax holiday period are eligible
for total or partial relief from the payment of corporation tax.

27. Where an approved enterprise is engaged in more than
one industry and the product of one of those industries is an
approved product under this Act, such portion of the out-goings

Allowances to
be taken into
account in
computing
profits for
purpose of
relief from
corporation tax.
Ch. 33. No. 3.
(1950 Ed.).

Profits for
accounting
period to be
apportioned.

Allocation of
outgoings and
expenses.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

Fiscal Incentives Chap. 85:01 25

LAWS OF TRINIDAD AND TOBAGO

L.R.O.

and expenses incurred in common by the enterprise for the
purposes of those industries shall be allocated to the industry
manufacturing or producing the approved product in such
manner as the Board may direct.

PART V

MISCELLANEOUS
28. (1) Except with the written approval of the Minister, no
factory of an approved enterprise used or intended to be used for
the manufacture of an approved product may be disposed of or
used for purposes other than the manufacture of the approved
product, during the tax holiday period prescribed by the Order
declaring the enterprise an approved enterprise or any variation
thereof and whether or not the Order is revoked.
(2) Except with the written approval of the Minister no
factory of an approved enterprise, other than an enterprise whose
status as such was revoked, may be disposed of or used for
purposes other than the manufacture of products that were its
approved products, within five years of the termination of its tax
holiday period.
(3) Nothing in subsection (1) applies to an enterprise
whose status as such was revoked if all sums due and payable to
the Comptroller and to the Board of Inland Revenue pursuant to
section 16(1) have been paid.
(4) An approved enterprise which contravenes
subsection (1) is liable on summary conviction to a fine of five
thousand dollars and in the case of a continuing offence to a
further fine of five hundred dollars in respect of each day during
which the offence continues after conviction thereof.
(5) An approved enterprise which contravenes
subsection (2) is liable on summary conviction to a fine of two
thousand five hundred dollars and in the case of a continuing
offence to a further fine of two hundred and fifty dollars in
respect of each day during which the offence continues after
conviction thereof.

Restriction on
use of factory.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

26 Chap. 85:01 Fiscal Incentives

LAWS OF TRINIDAD AND TOBAGO

29. (1) Subject to subsection (2), all applications pending
under the former enactments shall be deemed to have been made
under this Act and the provisions of this Act shall apply accordingly.
(2) Where an application for pioneer status was made
under the Aid to Pioneer Industries Ordinance (repealed by this
Act) and—
(a) no Order was made upon such application; and
(b) the application is pending at the commencement

of this Act—
(i) the Order may, in the discretion of the

President, be made under this Act;
(ii) the Aid to Pioneer Industries Ordinance

shall continue to apply with respect to the
conditions concerning the grant of the
status of an approved enterprise; and

(c) nothing in this Act in conflict or at variance with
those provisions shall apply to such an
application except that the provisions of this Act
governing the importation of goods shall apply
to any such enterprise.

30. The exercise of the powers vested in the President and in
the Minister under this Act shall be in their absolute discretion.
31. (1) The President may make such Regulations as he
considers necessary or expedient for giving effect to the
provisions of this Act and in particular may make Regulations
prescribing anything that is required or authorised to be
prescribed by or under this Act.
(2) Regulations made under subsection (1) shall, within
thirty days of the making thereof, be subject to negative
resolution of Parliament.
32. The benefits under section 5(1)(a)(i) shall apply only to
an approved enterprise which made an application for the grant of
the status of an approved enterprise on or before 31st December
2006 and was granted such benefits prior to 1st January 2008.

Transitional.

Ch. 33. No. 3.
(1950 Ed.).

President or
Minister to have
absolute
discretion.
Regulations.

Application of
Act.
[17 of 2007].

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

Fiscal Incentives Chap. 85:01 27

LAWS OF TRINIDAD AND TOBAGO

L.R.O.

FIRST SCHEDULE

PRODUCTS EXCLUDED FROM DEFINITION OF
APPROVED PRODUCTS

Aerated water
Automobile mufflers (not produced as part of an integrated automobile
exhaust system)
Bakery products
Beer
Brushes and mops
Cardboard boxes
Cigarettes
Clocks
Coir products, mats and matting
Concrete blocks
Concrete pipes (non-asbestos)
Concrete tiles
Copra
Corrugated cardboard containers
Drinking straws
Edible oils and fats from copra
Handicraft items
Hats and caps
Hollow ware (aluminium)
Mattresses
Nails
Paper bags
Phonograph records
Plastic film
Popcorn
Printing
Rum
Shirts and knitted underwear
Stationery (other than continuous business forms)
Syrups
Tissue paper products
Tubular furniture (aluminium)
Twine
Umbrellas
Window frames (aluminium)

Sections 4(4)
and 9(4) and (5).

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

28 Chap. 85:01 Fiscal Incentives

LAWS OF TRINIDAD AND TOBAGO

SECOND SCHEDULE

MAXIMUM TAX HOLIDAY PERIODS

Classification of Approved Tax Holiday Periods
Enterprise Categories Years

Group I Enterprise … … … … 9
Group II Enterprise … … … … 7
Group III Enterprise … … … … 5
Enclave Enterprise … … … … 10
Highly Capital Intensive Industries … … … 10

THIRD SCHEDULE

ENACTMENTS
Aid to Pioneer Industry Ordinance, Ch. 33. No. 3. (1950 Ed.).

Cement Industries (Development) Ordinance 1951, Ch. 33. No. 17 (Supp. Vol. I).
(1951–53 Ed.).

Nitrogenous Fertilizer Industry (Development) Act 1958, No. 3 of 1958.

Lubricating Oils and Greases Industry Development Ordinance 1961,
No. 44 of 1961.

Petrochemical Industry Development Act 1962, No. 4 of 1962.

Tyre Manufacturing Industry Development Act 1967, No. 39 of 1967.

Section 10(1)
and (2).

Section 2(1).

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt