News
Clint chan tack
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.