Employer of record in Trinidad and Tobago

The economy

The Republic of Trinidad and Tobago relies heavily on its energy resources, particularly petroleum and gas, which account for 80% of its exports. Other main industries are chemicals, food processing, cement, and beverages. The country’s main export partners are the United States, Jamaica, and France. Its natural resources have placed the country as one of the strongest economies in the Caribbean and it continues to attract international investors.

Small and medium businesses

Small and medium businesses make up about 45% of Nicaragua’s GDP and they account for 74% of jobs. The country has improved its investment climate by reducing the time needed to get a business license or construction permits. There are also improvements in access to patents and trademarks.

The United States has provided grants to the food agribusiness, clothing textiles, leather goods, wooden furniture, and artisan products. The Nicaraguan Ministry of Labor has trained many small and medium businesses on worker health and safety to reduce turnover and absenteeism. SMEs should continue to provide growth for the country.

Starting a business

Any person from any nationality may start a business in Trinidad and Tobago. An investor will have the choice of creating a limited liability company, a partnership, or a sole proprietorship. To register a business, the investor will need to complete online registration using a Single Electronic Window portal. The fee to register a business name is TT$25.00 and the fees to register legal status of the business is TT$220.00. The business becomes legal once it has received the Certificate of Business Registration.

This is the third wealthiest area in the Caribbean, and is recognized as a high-income economy. This is due to the large reserves of oil and natural gas. With a high growth rate, this is a good place to start a business, especially in liquefied natural gas and petrochemicals, aluminum and plastics. It also supplies a wealth of food and beverages, and cement.

Payroll

Tax advantages

The country of Trinidad and Tobago offers foreign tax credits to avoid double taxation. Registered foreign companies also benefit from a tax holiday which lasts up to 10 years. The exemption may be total or partial. Profits may be shared tax free and net losses can be carried forward for 5 years for set offs.

The Tourism Development Act 2000 allows for approved tourism development projects, like hotels and resorts, to benefit from a tax holiday for 7 years. A Free Zone allows certain companies, like manufacturing, to be tax free. Promotional expenses for services and produced goods are tax deductible as an expense at 150% and companies grating scholarships can deduct the amount.

There is a 150% allowance for audiovisual expenses and if a company chooses to set up a child care facility for a maximum of TT$ 500,000. There is a 150% deduction for wear and tear of equipment and machinery and a company can claim a deduction of 150% for training employees.

All of this ensures that businesses can remain running, and give their employees good benefits.

Gastronomy

People eat a lot of seafood, a variety of fruits, and leafy vegetables.

It is a land where many cultures have crossed, and it shows in the variety of dishes. People like to make dumplings such as the Aloo pie, which is a soft fried pastry filled with vegetables. But Indian desserts and sweets are popular.

On the street, people can readily find gyros, kebabs and wontons. Ice-cream is also a local favorite and is often made with coconut milk and condensed milk.

Population

Trinidadians and Tobagonians have diverse ethnic roots coming from India, Africa, Europe, and Asia. Most people are of Indian (35%) or African (34%) descent. The religious landscape is varied. They value family relationships and will typically leave close to extended family. The majority of people consider themselves Christians, but there are also many Hindus and Muslims. They also love music and invented the now famous calypso drum.

Geography

The country is an archipelagic republic in the southern Caribbean, northeast of Venezuela. It enjoys a tropical climate with dry and wet seasons. The southern part of Trinidad island is rich in oil and has the world’s biggest asphalt deposit on the southwest side of the island, which is called Pitch Lake. Tobago is a much smaller island that is known for its amazing coral reef called the Buccoo Coral Reef. This reef is popular with divers.

• Chaguanas

This is the biggest city in terms of population and is located in Trinidad and has nearby sugar, cocoa and coconut estates. It is the fastest growing city in the country. Its economy is based around retail with a lot of malls but is also the home to the banking headquarters.

• San Fernando

The second most populated city is located along the southwest coast of Trinidad, and it grew mostly due to surrounding sugar plantations but cacao and petroleum led to further growth. Today the economy relies on that petroleum, therefore, this city is known as the industrial capital.

• Port-Of-Spain

This city is the capital of Trinidad and Tobago and the economy is based on public administration, as well as shopping centers and commercial businesses. It became the capital in 1757 and grew due to the increase in commercial activity.

General highlights

What you need to know about employing personnel in Trinidad and Tobago:

Laws and agencies that regulate labor relationships

Trinidad and Tobago are part of the International Labor Organization, and these laws govern how employment is handled. However, there is flexibility between the employer and the employee.

Key tax and labor authorities

Labors contracts

Annual taxable income

The personal income tax rate in Trinidad and Tobago is 25%. It is imposed on different sources of income, like labor, pensions, dividends and interest. This source of income is important to the government. Those who are a resident, or domiciled, are taxed based on their worldwide income. However, a non-resident is taxed on income only from Trinidad and Tobago, except where applicable double taxation treaties apply.

Corporate tax rates

The standard corporation tax rate is 30%, but different types of corporations have different levels of taxation.

Public holidays

The Labor Code provides for public holidays that are observed in Trinidad and Tobago:

Termination 

There must be grounds for dismissal when letting an employee go in Trinidad and Tobago, with an open ended contract.

Other forms of compensation upon termination include:

Severance pay is officially only given to employees terminated due to redundancy, or ‘retrenched’. Some em- ployees may still give payment other than in cases of redundancy, however, it is rare when the employee is terminated for cause. Terminated employees are owed their accrued benefits.