Corporation tax

10 year tax holiday for T&TSE SMEs listing

Trinidadian companies are to benefit from a ten year tax concession to small enterprises that list on the Trinidad and Tobago Stock Exchange, similar to the concession granted to listings on the Jamaica Stock Exchange Junior Market that will result in tax free status for five years and half the tax for the second five years, effective 2022.

The information was contained in his 2022 national Budget presentation by the Minister of Finance, Colm Imbert, in which he announced the tax benefits for small and medium enterprises (SMEs) that are listed on the Trinidad and Tobago Stock Exchange (TTSE).
The incentives come into effect from January 2022 that will result in SMEs will be granted a full tax holiday for five years following a listing on The TTSE and a 50 percent tax holiday for the second five years following the listing, thereafter the standard rate will apply thereafter. These exemptions include Corporation Tax, Business Levy and Green Fund Levy.
Prior to the announcement, the tax concession, initially announced in 2011, that resulted in the tax rate being 10 percent and later increased to 15 percent in 2020, resulted in only two companies listing as a result, in contrast to Jamaica Stock Exchange Junior Market that has been a resounding success, with 46 companies attracted to it with more to come shortly. It is worth noting that Jamaica in 2016 was planning to abolish the incentive, fortunately, that did not happen as such the Junior Market continues to grow and helps to strengthen the economic base of the country.
In commenting on the imminent SME tax holiday, CEO of the TTSE, Eva Mitchell, praised the opportunities this opens up for both the companies covered by the benefits and the public who are eager for new channels for investment. “The country continues to operate under the restrictions and sustained economic blows imposed by the Covid pandemic. The SME sector has been hit extremely hard, and these new tax incentives provide welcomed relief. The fact that they are accessible via listing on the Stock Exchange encourages interest and investment for further growth from our stakeholders. The Stock Exchange is a closely regulated environment which supports public confidence and sustained participation.”

GOJ income falls but fiscal on track

The Jamaican government is on track to achieve their primary surplus target with the December data showing only half a billion positive balance over the budgeted target level, but that is well down on $6.2 billion excess achieved for the period to November.
The primary surplus at the end of December comes out at $66.5 billion and is up from November’s surplus of $54.4 billion. The excess over forecast was achieved although revenues are off by $10 billion, or more than $3 billion worse than the $6.8 billion at the end of November. Tax revenues fell short by $9.7 billion to November as economic measures bite, but non tax revenue was better than forecast by $2 billion and grants were off by $3 billion.
Tax on interest brought in $1.5 billion in revenue over budget and was up by 39 percent, PAYE rose by 4 percent or $2 billion to $49.9 billion. The shortfalls were mostly local GCT down by $5.4 billion or 10.6 percent to $5.5 billion. Corporation tax fell short by $6.6 billion or 30 percent, Special consumption tax dropped $1.7 billion or 19 percent
The wage bill that was on target to November shows $1.76 billion in savings to December, as government spent $121 billion on this item, interest cost is down by $4.5 billion to $95 billion and other cost fell by $671 million. Capital expenditure, underspent by $7.4 billion to November is now $8.3 billion below forecast or 31 percent reduction.
The fiscal deficit targeted at $33.87 billion is down by $5 billion to $28.9 billion thanks to cut in scheduled payments.