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.”
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