VAT in Trinidad and Tobago

Tax
In Trinidad and Tobago, Value Added Tax (VAT) is a tax on goods and services. VAT is added from the initial production of goods and services to the point of sale. The amount of VAT the user pays is based on the cost of the product minus any costs of materials that were taxed at a previous stage. Understanding VAT A value-added tax is a tax that is added to goods and services at every level of the supply chain. The tax is usually passed on to the consumer or end-user. It is based on consumption rather than income. In contrast to a progressive income tax, which levies more taxes on the wealthy, VAT is charged equally on every purchase. VAT is levied on the gross margin at each point…
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Tax Exemptions

Tax Exemptions

Tax
It's YOUR move now! It's important to know what's your next move as it pertains to your company's Tax Management Strategy. We are happy to evaluate the topic of exemptions to better equip you for success in 2019 and beyond. TAX EXEMPTIONS An exemption is a legally-allowed reduction of the reported amount of taxable income. The following are some examples of exemptions allowed in Trinidad & Tobago: A deduction from taxable income of a resident of Trinidad and Tobago where the total income does not exceed Seventy-Two Thousand ($72,000) which is the amount of the personal allowance for a year of income. Pensions - Those under the National Insurance Act. Interest for saving accounts accruing to resident individuals on saving accounts or on Bonds or other Similar Investment instruments. Depending…
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Taxable Income

Taxable Income

Tax
Taxable or Non-Taxable?This is one question always on the mind of every business owner!We have chosen to inspect the question of Taxable Income on this week's post, better equipping you for success in 2019 and beyond.TAXABLE INCOMETaxable income is a taxpayer's gross income, minus any allowable tax deductions or exemptions.A tax rate is applied to the taxable income figure to determine the amount of tax payable by a taxpayer.Many types of income can be included within the taxable income classification within Trinidad and Tobago including the following:CompensationDividend incomeGambling winningsInterest incomeLottery winningsProfits from the sale of real estateProfits from the sale of securitiesTip incomeOther types of income that are not classified as taxable income, including the following:Child support paymentsIncome paid into a retirement accountInheritancesScholarshipsWelfare Benefits or GrantsWorkers' Compensation paymentsAs an entrepreneur…
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Tax Evasion

Tax Evasion

Tax
It’s critical that you understand Taxation Terminology and principles as an Entrepreneur. We are committed to providing guidance as it pertains to Organisational and Personal Financial Matters.Below are our view on Tax Evasion from the Accounting& Advisory Team at Robley Baynes Tax & Accounting Services.TAX EVASIONTax evasion is the wilful avoidance or underpayment of a tax. Both individuals and business entities can engage in tax evasion.There are a number of ways to evade taxes, such as not reporting taxable income and overstating the amount of applicable tax deductions and tax credits.Those found guilty of tax evasion can receive substantial fines and may also be charged with criminal offenses that can result in a person serving time in jail.Tax evasion differs from tax avoidance, where a taxpayer is using legitimate methods…
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Tax Planning Vs Tax Management

Tax Planning Vs Tax Management

Tax
Tax Planning Vs Tax ManagementIt’s critical that you understand the difference between the two! What techniques your business is currently utilising? Is it Tax Planning techniques, Tax Management techniques or even both! Knowing the Comparable differences will have a major impact on your Business profitability.Below are our view on Tax Planning vs Tax Management from the Accounting & Advisory Team at Robley Baynes Tax & Accounting Services.Tax Planning Vs Tax ManagementTax Planning is all about planning of taxable income and planning of investments of the Tax Payer. As against, Tax Management deals with the proper maintenance of financial records, audit of accounts, timely filing of the return, payment of taxes and appearing before the appellate authority, whenever required. Some of the major comparisons includes:TAX PLANNINGTAX MANAGEMENTThe objective of tax planning is…
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