Minister of Finance Colm Imbert – Photo courtesy of the Bureau of the Parliament

THE Ministry of Finance reminded the public on Friday of the 16 measures announced in the 2022 budget which will come into force on January 1 (New Year’s Day). The reminder was posted on the ministry’s Twitter account.

They were:

– a five percent reduction in the tax rate for major merchandise exporters for three years

– 50% tax exemption on the first $ 100,000 of taxable income for new businesses whose main activities are digitization and technological solutions

– five percent reduction in the tax rate for three years for small and medium-sized enterprises (SMEs) whose core business is technological solutions and digitization

– full tax exemption during the first five-year period for new SMEs listed on the TT stock exchange

– $ 8,000 fine for overweight trucks

– five percent reduction in the manufacturing sector tax rate for two years on eligible projects

– reduction of the withholding tax rate to eight percent on distributions made and to three percent when these distributions are made to a parent company, subsequent to the amendment of the income tax law

– increase the limit to $ 30,000 on mortgage interest paid by the first owners for five years from the date of acquisition

– increase in the relief granted on approved pension and annuity plans to $ 60,000

– 100% exemptions from VAT, motor vehicle tax and customs duties on imported battery-powered electric vehicles not older than two years

– 100% exemptions from VAT and customs duties on certain therapeutic equipment for the hearing, visually impaired and physically disabled

– ten percent increase in utility discounts on bills of $ 300 or less

– 100% VAT and customs duty exemptions on all remaining hardware, software and peripherals

– research and development capital allowance (tax break) of up to 40 percent of expenditure (in the calculation of taxable profits made by companies in the field of research and development)

– 30 percent tax credit up to $ 500,000 for companies investing in carbon capture and storage and enhanced oil recovery

– 150 percent tax rebate of up to $ 1 million on corporate sponsorship to heritage properties under the supervision of the National Trust.

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