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Business Levy
The Business Levy is a tax of 0.6% on the gross sales or receipts of companies and self-employed individuals operating in Trinidad and Tobago, designed to ensure all businesses contribute to national revenue.
Overview & Legal Basis
The Business Levy was introduced to ensure that all businesses operating in Trinidad and Tobago contribute to government revenue based on their gross sales or receipts, regardless of profitability. This levy helps fund public services and infrastructure development.
Legal Basis: Business Levy Act, Chapter 77:05
Key Features:
- • Applies to gross sales/receipts, not net profit
- • Quarterly filing and payment required
- • Minimum and maximum levy amounts apply
- • Electronic filing available through Tax TT portal
- • Penalties for late filing and payment
- • Integrated with other tax obligations
Who Pays Business Levy
Businesses Subject to Levy:
- • All incorporated companies in Trinidad and Tobago
- • Self-employed individuals and sole proprietors
- • Partnerships and joint ventures
- • Foreign companies with local operations
- • Professional service providers
- • Businesses with gross sales/receipts of $2.5 million or more annually
Gross Sales/Receipts Include:
Sales of goods and services
Professional fees and commissions
Rental income from business properties
Interest income on business accounts
Dividends from business investments
Foreign exchange gains
Insurance proceeds (business-related)
Royalties and licensing fees
Important: The levy is calculated on gross sales before any deductions for expenses, returns, or allowances. This ensures consistent revenue collection regardless of business profitability.
Levy Rates & Calculation
| Category | Rate/Amount | Description |
|---|---|---|
| All Businesses | 0.6% | Of gross sales or receipts |
| Minimum Levy | $1,500 | Annual minimum payment |
| Maximum Levy | $2,000,000 | Annual maximum payment |
| Threshold | $2.5 million | Minimum gross sales for levy |
Calculation Examples:
Example 1: Company with $10 million gross sales
Levy = $10,000,000 × 0.6% = $60,000 annually
Levy = $10,000,000 × 0.6% = $60,000 annually
Example 2: Small business with $1 million gross sales
Below $2.5M threshold = No levy required
Below $2.5M threshold = No levy required
Example 3: Large corporation with $500 million gross sales
Calculated levy = $3,000,000, but capped at maximum of $2,000,000
Calculated levy = $3,000,000, but capped at maximum of $2,000,000
Payment Schedule:
- • Quarterly returns due: April 30, July 31, October 31, January 31
- • Annual reconciliation due: March 31
- • Payments due with each quarterly return
- • Late filing penalty: $500 per month
- • Late payment penalty: 5% per month on outstanding amount
Exemptions & Concessions
Organizations Exempt from Levy:
Non-profit organizations
Charitable institutions
Religious organizations
Educational institutions
Government entities
Businesses with gross sales below $2.5 million
Approved small business enterprises
Cooperative societies
Small Business Considerations:
- • Businesses below $2.5M threshold are exempt
- • New businesses may qualify for first-year exemption
- • Micro-enterprises may receive reduced rates
- • Special provisions for seasonal businesses
Investment Incentives:
Approved investors may qualify for Business Levy concessions:
- • Manufacturing sector incentives
- • Tourism development concessions
- • Export-oriented businesses
- • Technology and innovation companies
Required Documents
- Audited financial statements
- Sales and receipts records
- Bank statements
- Previous year's Business Levy return
- Certificate of incorporation/business registration
- Tax compliance certificate
- VAT registration certificate (if applicable)
- Exemption certificates (if claiming exemptions)
Record Keeping Requirements:
- • Maintain detailed sales and receipts records
- • Keep all supporting documentation for 7 years
- • Ensure records are available for audit
- • Electronic records must be backed up and accessible
Filing Requirements:
- • Quarterly Business Levy returns must be filed
- • Electronic filing through Tax TT portal preferred
- • Annual reconciliation required
- • Nil returns must be filed if no sales in quarter