Employer Tax Contributions

Tax Type	Rate	Base
PAYE (Income Tax)	25% (up to TT$1,000,000); 30% (above TT$1,000,000)	Employee's chargeable income/emoluments
National Insurance Scheme (NIS)	Up to TT$276.20 per week (employer share)	Employee's insurable earnings (max TT$13,600 monthly)
Health Surcharge	TT$8.25 per week (monthly emoluments > TT$469.99); TT$4.80 per week (others)	Employee's emoluments
Green Fund Levy	0.3%	Company's gross income/sales/receipts

Filing & Compliance

• PAYE and Health Surcharge payments and monthly returns are due by the 15th day of the month following the deduction.
• NIS contributions are due by the last day of the month, with a grace period until the 15th day of the following month.
• Employers must issue TD4 Certificates to employees by the last day of February each year and file the PAYE Annual Return by the same date.

In Trinidad and Tobago, employee tax deductions encompass various areas, including income tax, social security contributions, and a health surcharge.

Income Tax

Employees in Trinidad and Tobago do not have standard deductions. However, unreimbursed travel expenses wholly, exclusively, and necessarily incurred in the course of employment can be deducted. A Tax Declaration 1 (TD1) form is used to declare these and other deductible expenses to employers. This form should be submitted at the start of employment and updated whenever salary, deductions, or tax credits change. Although filing an annual tax return isn't mandatory for employees, it is an option if there's a disagreement with the withheld tax amount.

Social Security Contributions (National Insurance)

National Insurance is deducted directly from employees' salaries. The contribution rates vary, with the maximum rate being TTD 414.30 per week for monthly incomes exceeding TTD 13,600. This maximum amount is split between the employer (TTD 276.20) and the employee (TTD 138.10). Resident individuals can deduct 70% of their National Insurance contributions from their taxable income.

Health Surcharge

All individual taxpayers pay a health surcharge, also deducted at source by employers. The maximum weekly rate is TTD 8.25 for monthly incomes exceeding TTD 470.

Other Deductions and Credits

Several other deductions and credits may be available to reduce your income tax liability:

• Tertiary Education Expenses: Deductions are available for approved tertiary education expenses, up to a maximum of TTD 72,000.
• First Time Home Ownership: Deductions are available for eligible first-time homeowners on approved mortgage expenses.
• Approved Deferred Annuity Contributions/Premiums: Contributions made towards approved deferred annuity plans can be deducted.
• Alimony/Maintenance Payments: Court-ordered alimony or maintenance payments can be deducted.
• Venture Capital Tax Credits: Tax credits may be available for investments in approved venture capital funds.

Deadlines and Procedures

• PAYE Deductions: Employers must remit income tax and health surcharge deductions to the tax authorities by the 15th of the month following the deduction.
• Self-Employed Quarterly Payments: Self-employed individuals are required to make quarterly tax payments by the last day of each quarter (March, June, September, December).
• Tax Return Deadline: While not mandatory for employees, those who choose to file, or those who are self-employed must submit their tax returns by the deadline set annually by the Inland Revenue Division, typically in March or April.
• Deduction Approvals: Approval from the Inland Revenue Division is needed for deductions related to tertiary education, first-time home ownership, alimony, venture capital tax credits, and private annuities. This involves submitting the TD1 form to the appropriate tax office.

Note: This information is current as of February 5, 2025, and may be subject to change.