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REPUBLIC OF TRINIDAD AND TOBAGO

INCOME TAX DEDUCTION TABLE

EFFECTIVE 2003 UNTIL FURTHER NOTICE

system and its application have been prepared.A. Board of Inland Revenue .) System is provided for by sections 98-101 of the Income Tax Act.Y. Section 101 requires the Board to provide Tax Deduction Tables.A. salaries and other emoluments.E.E.E. The Board of Inland Revenue has prepared easy to use P.Y. Chap.E.FOREWORD The Pay As You Earn (P. HASEENA ALI Chairman.Y. Tax Deduction Tables which show the amount of tax to be withheld from wages.Y. instructions (including examples) covering all aspects of the P. In addition.A. 75:01 and the Income Tax (Employment) Regulations made in accordance with section 125 of the Act. Sections 98-100 deal with the obligations of employee and employer and define “emoluments” which are to be subject to P.A.

4 Supplementary … … … … … … … 5. Disputes … … … … … … … … … 7. T. Examples for deduction of PAYE Taxes … … … … … V. Change of Ownership-Business … … … … … … VI. Emoluments … 5. Payments from which Income Tax should not be deducted … … 3. Emoluments to be taken into account in determining chargeable income … 2. Employer … … 2. USE OF TAX TABLES AND EXAMPLES 1. Penalty for Failure to Deduct and Remit Taxes … … … 3.iii CONTENTS Page I. Employee … 3. Form T. Deduction of Tax from Payments relating to Termination of Employment 4. DEDUCTION OF TAX BY EMPLOYER 1. Change of Employment … … … … … … … 9. Accounting for Tax Deducted and Keeping Records … … 4. Payment of Tax to the Board of Inland Revenue … … … 2.D. Office … … 4. 4 Certificate is to be Delivered … … … 6. Agreements not to Deduct are Void … … … … … 8. Death of Employee … … … … … … … … 11. TAX RATES 1997-2002 … … …… … … … … … … … … … … … … … … … … … … … … … … 13 13 13 13 13 14 14 14 14 … … … … … … … … … … … … 8 9 11 11 12 12 12 12 12 12 12 12 … … … 2 3 3 .D.D. Retirement of Employee … … … … … … … 10. Persons Paying emoluments in the Public Service … … … VII. When T.1 … … … … … … … … … … … … … … … … … 2 2 III. Reconciliation of Records … … … … … … 7. PAYMENT AND ACCOUNTING FOR TAX AND HEALTH SURCHARGE 1. Accounting for Arrears of Tax … … … … … 8. DECLARATION BY EMPLOYEES: CALCULATION OF TOTAL DEDUCTIONS 1. DEFINITIONS 1. Health Surcharge … … … … … … … … 6. Death of Employer … … … … … … … … 12. Direction on use of tables … … … … … … … 3. Chargeable Income … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … 1 1 1 1 1 II. Deduction of Tax on Payment of Emoluments … … … … 2. Distribution of Certificates of Emoluments Paid and Taxes Deducted 5. TAX DEDUCTION TABLES IV.

For the purpose of the Tax Deduction Tables.000.I. and includes the Office of a Minister of Government. “Employee” means any person. but shall not include any salary or share of profits arising from a trade or business. 5. the Office of a member of the Senate or the House of Representatives of Trinidad and Tobago. “Employer” is defined in the legislation as any person paying emoluments to an employee.e whose name appears on the Land and Building Receipt / Deed of Conveyance. DEFINITIONS 1. commission or other amounts for services. “Office” means a position. . not being the holder of an office. Any or all of the following may be claimed by a resident individual as deductions: (a) (b) (i) (ii) (i) (ii) (iii) NB: An individual under 60 years of age – A personal allowance of $25. stipend.R. the value of board and lodging. director’s fees.000 in any year of income.000. B. bonus. profession or vocation carried on by any person either by himself or in partnership with another person. and any other perquisites arising or accruing in or derived from or received in Trinidad and Tobago and which are assessable to income tax. 2. Interest on loans in respect of property used on behalf of the owner or rentfree by the occupier for the purpose of residence. “Emoluments” means all salary. (certain conditions apply) The aggregate amount of the deductions made under b (i-iii) above shall not exceed the sum of $18. a member of the Municipal or County Council and any other office.000. The term includes any person paying emoluments on behalf of another person such as a manager of a company. the holder of which is elected by popular vote or is elected or appointed in a representative capacity and also includes the position of a company director. TAX TABLES … … … … … … … … … 15 INSTRUCTIONS I.00 and may be claimed for the first Five years commencing from the year in which the house was acquired. in receipt of emoluments.I.00 An individual over 60 years of age – A personal allowance of $30. wages. overtime. “Chargeable Income” means total emoluments minus total deductions. 4. retiring allowances or pensions. remuneration. In each case the claim is limited to $18.00 Interest on loans/bridging finance in respect of property to be used by the owner as his residence. not being an employment or place entitling the holder thereof to a fixed or ascertainable stipend or remuneration. An allowance for first time acquisitions of homes.S. Expenses incurred in respect of Tertiary Education. (c) (i) NB: This allowance should not exceed $10. meal allowances.000 per taxpayer. 3. For the purpose of paragraph (ii) Owner of residence means the legally titled owner of the property i. (d) (i) N.VIII. contributions limited to 70 per cent of such contributions.

(c) Monthly paid employees-Divide annual tax by 12. The Form TD 1A replaces the Form TD 1 and must be complied with in the same manner as authorized by the Form TD 1. approved Pension Fund Plan and premiums paid under an approved Deferred Annuity Plan. II. on the basis of the information in the T. “Form T. as applied to chargeable income (annual pay less deductions). approved Fund or Scheme. 1 will advise the employer(s) of total deductions to be taken into account in determining the tax to be deducted from emoluments. and (b) where claims are made in respect of loan interest. the Board shall issue a directive (Form TD 1A) directing the employer to deduct tax from in accordance with the directive. The Board. DECLARATION BY EMPLOYEES: CALCULATION OF TOTAL DEDUCTIONS 1. The aggregate amount of the deductions made under c (i) and (ii) above shall not exceed the sum of $12. tertiary expenses (5(b) above). Amounts to be deducted from employees’ emoluments are to be determined as follows: (a) Weekly paid employees-Divide annual tax by 52.D. III.000 in any year of income. 1 on the commencement of employment and need not file a new declaration unless there is a change in allowable deductions or as instructed by the Board on Inland Revenue.(ii) Contributions to Government Widows’ and Orphans’ Pension Fund. TD 1A It should be noted that where an employee has income from more than one source. NB: (iii) Alimony/Maintenance payments made to a spouse or a former in accordance with a court order. 2.D. emoluments to be taken into account include: . Emoluments to be taken into account in determining chargeable income In arriving at chargeable income. approved Provident and Superannuation Fund. TAX DEDUCTION TABLES The tables are designed to show annual tax to be deducted. (b) Fortnightly paid employees-Divide annual tax by 26. USE OF TAX TABLES AND EXAMPLES 1. IV. and /or Alimony/Maintenance. Approval by the Board is required in the following cases: (a) where a person receives emoluments from more than one source.D. 1” is the prescribed form on which to complete declarations and is solely for the purpose of making deductions of tax from pay. An employee is required to file a T. and/or an approved Deferred Annuity Plan.

which is not otherwise at his disposal. Taxes (For the purposes of these Tables. Chargeable Income and Emoluments are defined at (5) on page 1). (b) Do not deduct tax from a resident employee whose annual emoluments do not exceed the amounts shown hereunder: Weekly … … … … $480. Examples for Deduction of P.a) Fortnightly … … … $961. For example. (f) MOTOR VEHICLE AND EQUIPMENT BENEFIT: Where the employer provides a director or employee with a motor vehicle or any equipment belonging to a company and the same is available for the private use of the director or employee.986 p.Y. ($24. this facility is considered a perquisite and the value of such is taxable.200 . ($25.D. 3. Determine Chargeable Income by deducting “total deductions” from annual emoluments: $31. or thirty-three and a third per cent (33 1/3%) of the monthly rental of the motor vehicle or equipment incurred by the company. Permission must be obtained from the Board of Inland Revenue to deduct an amount less than the amount shown in the tables. other deductions as shown on T. Deductions $27. Personal allowance + $2.996 p. (b) overtime which is paid with regular emoluments. 1. (c) leave pay-when an employee ceases employment and goes on terminal leave.$31.800.(a) taxable benefits.083. and (e) Advances of pay-Tax must be deducted from payments representing emoluments paid in advance to employees. 1).200 – employee’s annual emoluments.A. ($24.960 p. the value per month of the benefit which must be included in the emoluments of the director or employee is – (i) (ii) one per cent (1%) of the cost of acquisition of the motor vehicle or equipment.800 = $3.$27. Example “A” – Weekly paid wages and benefits . where he is taken to and from his home in a car. the value of board and lodging or any other benefits derived by the employee from his employment.E. . 2. ($24. tax must be deducted from leave pay as if employment were continuing. Result . Direction on use of tables (a) The tables are to be used as shown in the examples.a) Annually … … … $25. Multiply $600 by 52. 2.400.a) Monthly … … … $2.800. A taxable benefit arises whether or not the director or employee has the exclusive use of the motor vehicle/equipment. (d) Emoluments credited to an employee’s account with the employer (not uncommon in cases of directors) are to be treated as paid and tax deducted at the time the credit is made.000. provided by the employer.$600.000.

Compare results at 3 and 4.000 which shows annual Tax to be deducted $33.000 Deductions $26. which shows annual tax to be deducted $850. Example “D”-Chargeable income exceeds maximum amount ($238. Result: Monthly deductions.265. Multiply $4. Divide $2.000 was $29. Look down column of tables headed “Chargeable Income” for $21.67.00 .000 25% Total $234. Multiply $1.000. Example “C”.D. Result-$445. Example “B” – Fortnightly paid wages and benefits . 4.735 other allowances as shown on T. Divide $82.000-employee’s annual emoluments. 2.000 personal allowance + $3. Annual Tax-$33. Look down column of tables headed “Chargeable Income” for $8. 1. 2.900. 3. Divide $850 by 52. Annual Tax-$29.700.$1. say $108.700 by 12 or 26 or 52 as the case may be to determine monthly/fortnightly/weekly deductions. Weekly deductions-$1.000.D. Fortnightly deductions-$3.500.001 .000) shown on tables 1.000 by reference to rates shown on Page 14 Chargeable Income $50.050 by 26.83 is the amount of tax to be deducted per pay period. Result-$48. Result-$36. Add Chargeable Income previously determined ($108.235 = $8. 4.00 $82. Determine Chargeable Income by deducting “total deductions” from annual emoluments: $48.350.38 Example “E”.400 by 26. Deductions $28.590.1).180.000) to Annual Bonus ($12.$120. Divide $5.85 is the amount of tax to be deducted per pay period. 4.400 .400.000 30% Tax Payable $12.3.350 by 12.35 is the amount of tax to be deducted per pay period.Monthly paid salaries and benefits $4. 2.Deductions from Annual Bonus. Chargeable Income $284.$6.$16.$28.201 .500.00 Chargeable Income $108. Chargeable Income as previously determined. Result-$78. 2. 1).900. 4. 3.000 Personal allowance + $1.000 @ $284.000-$26.000) Result-$120. Annual Tax to be deducted as previously determined by reference to chargeable income $108.891.400 which shows annual tax to be deducted $5.000. Look down column of tables headed “Chargeable Income” for $119.000. Result . Determine Chargeable Income by deducting “total deductions” from annual emoluments: $36.000.77.201 $3.$8.000 by 12. 1.000.050. 3.200.200 which shows annual tax to be deducted $2. Look down column of tables headed “Chargeable Income” for line indicating $3.400-employee’s annual emoluments. 4.235 other deductions as shown on T. 1.00 $70.801 .735=$21. Determine actual tax payable on $284. Annual Bonus-$12.500.$21.735 ($25.00 5.165.235 ($25. Chargeable Income $120.400.00 3.

000 Personal allowance + $3. 3.200.000 Alimony and $11. 5.e.000 is $3. 6. 2.235 ($25.600 x 6 months) Result-$15. Determine pay due for period July to December at $2. Add amount paid at (2) to result at (3).900 is $3.e. Result-$600. Total Deductions $28.235 other deductions as shown on T.600. Annual Pay $30. ($25.125 per month with effect May 1. 2003 salary increased from $5. Result$62.500 x 6 months) Taxes deducted $225... 1) 2.600 per month. Total deductions $50.072. Gross amount paid and tax deducted to June 30.800 (i.200 other deductions as shown on T.D.00 7. Annual Pay-$30.600. Tax to be deducted from Bonus of $12.00 $225. Total $30. Pay increased from $2. 2003 would be as shown hereunder: . less deductions $28.200).). would be as shown hereunder: Amount paid-$15. 1.00 $375. On June 1. less deductions-$28.50.00 (6 months @ $37.500 and $29. 2001.Difference between $33.000.500 to $2. Determine tax to be deducted at Chargeable Income $2. Determine Tax to be deducted for July to December: Tax to be deducted from pay Less: Tax already deducted Balance of tax to be deducted … … … … … … … … … $2.00 $600. For months July-December monthly tax deductions should be $375 divided by 6.885 per month to $6. 4.$15. Example “G”-Deductions where there are salary increases which are retroactive.600.D.1).000 ($2. Determine revised annual pay.600. ($2.00 $ 952.600 per month with effect from July 1.50 per month) as determined by reference to Chargeable Income-$1.000 Personal allowance + $14.120.00 6.400 (i. Gross amount paid and tax deducted for period January 1 to May 31.00 $1.600.200.000 + $15.00 Example “F”-Deductions where there are pay increases which are not retroactive.600. 1.

000 x 5 = $30. . Result-$110.537. Add results at (4) and (5).. Annual Pay-$73.000.e.001 .50.265. 3.50 (7 months @ $487. 2002 to May 31.420 ($72. Divide $550 by 5. Annual tax deductible. 7.537.1).125 x 7 months). Tax to be deducted on arrears of $3. Example “H”-Deductions where a resident individual commences employment in Trinidad and Tobago for the first time.885x5 months).120).$29.120. Determine revised Annual Income (Arrears included) and Tax deductible.235). Deductions $27. Look down column of tables headed “Chargeable Income” for line $2.300 + $3. Multiply monthly salary by remaining number of pay periods in the year: $6. Example “I”-Deductions where the tax is paid by the employer on behalf of the employee or emoluments are paid free of tax or net of tax.500. Determine pay due for June 1 to December 31. Result-$762.00 is the amount to be deducted from employee’s earnings for each of the months August to December. 6.620.800 = $2.000 per month.$2. 2.120 is as follows: Tax deductible at (6) minus tax deductible at (4).000 . (Employee’s Gross Income for the year).$2.50 ($6.$70.$6.875 ($6.425-($5.300 as determined by reference to Chargeable Income $25. Determine chargeable income. Gross income minus deductions: $30.185 (i. ($6.125.000 personal allowance + $2.300.200 which shows tax to be deducted as $550.. Less deductions $50.885 = $240 per month) Arrears $240 x 13 Results-$3. . Pay due June 1 to December 31. Determine Arrears due for the period May 1. Annual pay $29. at salary of $6. 4. Tax deducted-$2. Employment commences August 1. 4.420 less deductions-$50.300.e.e.800 ($25.235). (i. Add results at (2) and (3).125-$5. Tax deductible .50 = $5. 2003 (13 months). 2003 $42.412.875 = $72.385.125 + $3. (5 months @ $425 per month) as determined by reference to chargeable income $20.200.425 + $42. 5. Annual Pay .235).D. Annual Income $75.800 other deductions as shown on T.Amount paid . 3.50). Determine revised annual pay and annual tax deductible. Annual Income including arrears = $75.412. Less deductions $50.50 per month) as determined by reference to chargeable income $23. Taxes deductible $3.$27. (i. 2003 and tax deductible. 1.$5.

000 Result per Step 1 ($54. Determination of Chargeable Income Step 1: (a) Determine annual emoluments inclusive of: (i) (ii) (iii) (iv) (v) (vi) Salary/Wages/Fees Value of free Boarding and Lodging Motor Vehicle benefits Entertainment Allowance Overseas travel entitlement Any other benefits/payments made by the employer (b) Deduct $25.1.69 . 3.69 $142.000 x 100 – 65 Total Chargeable Income 2.000 = $92.000) Chargeable Income re first Chargeable Income re excess. (ii) Where Result per Step 1 falls into Range (b).000 Chargeable Income: $29.500.000. i.000 of the result at Step 1 will relate to chargeable income of $50.307. PAYE must be remitted to the Board by the Employer on or before the fifteenth day of the month following that in which emoluments were payable.00 $60. Step 3: Computation of Chargeable Income (i) Where the Result per Step 1 falls into Range (a) – Multiply the result per Step 1 by 100 and divide by 72: Example: Annual Emoluments net of tax-$54.000) = $29. 1 Step 2: Determine into which of the following ranges the result at Step 1 falls: Range (a) … … … … … … $0-$37.307.000 $36. Chargeable income in respect of the excess is determinable by multiplying the excess by 100 and dividing by 65.500. = $60.000. Determination and Remittance of PAYE Having determined chargeable income. Range (b) … … … … … … Over $37. $36. Personal allowance/Deductions as per T. PAYE per pay period can be determined as shown in the appropriate earlier example.000.e.000: Result per Step 1($121.000 x 100 – 72 = $40.000 is $50. Taxpayer’s Total Income = $96. Example: Annual Emoluments net of tax-$96.000-$25.278 (to nearest $).000-$25.D.

is the amount of tax to be deducted per pay period.500.000.D. Look down column of tables headed “Chargeable Income” for line indicating $59. . 1 of his T. Only the Board of Inland Revenue has the authority to reduce tax deductions of an employee as shown on the Tax Tables.100 per month.100 x 12 = $73. Monthly emoluments-$15.000 by 4 = $60. Taxable emoluments are those arising or accruing in or derived from or received in Trinidad and Tobago.875. (i) (ii) (iii) multiply $15.00 by 12. persons paid on a commission basis only. Divide $19. Deduction of Tax on Payment of Emoluments Every employer shall deduct tax on the payment of emoluments to any employee or holder of an office. Example “K”-Deductions in respect of Non-Resident Employees Non-Residents are not eligible for deductions or tax credits.621. 1. Deduction from pay is required to be made in accordance with the Tax Tables. monthly or annual intervals. DEDUCTION OF TAX BY EMPLOYER 1. V.000 which shows annual tax to be deducted $15.801-$60.200 which shows annual Tax to be deducted $19. Result $1.500 by 4-Result-$3.A taxpayer whose emoluments (inclusive of taxable allowances. Look down column of tables headed “Chargeable Income” for line indicting $73.000 Personal allowance. The Board will determine the amount to be deducted in the following cases: (a) where payment is made at other than regular. fortnightly.460. 2. Gross Income $6. non-residents’ annual income and chargeable income are the same.D. 4 (certificate of emoluments paid and tax deducted) for the relevant income year. Determine annual income: $6. e.200. This amount should appear in the “Gross Income” column or Deductions as per T.g.D. Divide $15. As such.001-$73. Example “J”-Deductions where the employee has not filed a T. weekly.00 3. 1 with his employer.67 is the amount of tax to be deducted per pay period.460.000-Peruid of Employment-4 months. the value of free board and lodging or any other benefits) are paid free of tax or net of tax is deemed to be paid the amount computed as chargeable income + $25. Employee’s Annual Emoluments/Chargeable Income.

(b) in the case of casual or seasonal workers. where a Double Taxation Agreement exists between Trinidad and Tobago and that Country. the amount payable to each employee. the reason for the termination of the employment. the names of the spouse/relative/dependant and the circumstances under which the payment is to be made to him/her. in the case of retirement on grounds of ill-health. ($30. e.000 where the individual is over 60 years of age). with respect to payments connected with termination of employment or office which would not otherwise be chargeable to tax: (a) where payments are to be made to a spouse. (c) where the total annual emoluments of a resident individual from all sources does not exceed $25. an original medical report from a Medical Practitioner registered with the Medical Board of Trinidad and Tobago or such other body outside of Trinidad and Tobago as the Board may accept. Board of Inland Revenue.g. (e) where claims are made in respect of deductions for Alimony/Maintenance. 3. the President of the Republic of Trinidad and Tobago (b) where the “emoluments” are pensions earned outside Trinidad and Tobago. Payments from which Income Tax should not be deducted Tax is not to be deducted from emoluments in the following cases: (a) where the official emoluments of the employee or holder of office is exempt from tax. if tax were deducted according to the Table from the six (6) months (say) during which they are employed and the total tax would far exceed their liability calculated on an annual basis. and . (c) where the Board decides that the class of employee or nature of the emoluments is such as to make the application of the table impracticable.. relative or dependant. There may be exceptions to this however. 2. premiums for deferred annuity plans and interest on loans in respect of owner-occupied property and tertiary education expenses. (d) in the case of employees with more than one employment. Corner Queen and Edward Streets must be supplied with the following information: (i) (ii) (iii) (iv) (v) the name and income tax file number of the employee to whom the payment is due.000. the PAYE Section. Deduction of Tax from Payments related to Termination of Employment Before making a payment which can be considered as Severance Pay (whether by reason of redundancy or ill-health) or a payment connected with the termination of holding of office or employment not otherwise chargeable to tax.

at the date that consideration was given. details of the consideration. . (c) under a fund or contract approved by the Board under section 134(6) of the Income Tax Act.(b) where payment is in the form of a valuable consideration other than money. (b) under an approved pension fund plan or approved deferred annuity plan.00 is exempt from tax. (3) CALCULATION OF TAX RE: SEVERANCE PAY AND PAYMENT CONNECTED WITH TERMINATION OF HOLDING OF OFFICE OR EMPLOYMENT NOT OTHERWISE CHARGEABLE TO TAX (a) An amount of $100. the date it is to be given and evidence of its value at that date. or (b) upon retirement or other termination of the employment by reason of ill-health where the Board is satisfied. Not included as payments under this heading are lump-sum payments made: (a) under an approved pension scheme. on such evidence as it may require. in connection with the termination of the holding of an office or employment or any change in its functions or emoluments including any payment in computation of annual or periodical payments whether chargeable to tax or not. Chap. (d) in connection with the termination of the holding of an office or employment by death of the holder or made on account of the injury to or disability of the holder of the office or employment. (2) Payments connected with termination of holding of office or employment not otherwise chargeable to tax. It is to be noted that a payment made to an employee by reason of voluntary resignation or any reason other than redundancy of the position or ill-health would not qualify as Severance Pay. Caught under this heading are payments not otherwise chargeable to tax which (whether in pursuance of any legal obligation or not) are made either directly or indirectly. or made on behalf of or on the order of that person. 75:01. that ill-health is the reason for termination of the employment. and (b) the value of any valuable consideration. “Severance Pay” is any payment (including any payment in lieu of notice) made under a contract of employment to any employee in relation to past services either(a) upon termination of employment by reason of redundancy of the position held by the employee. Specifically included as payments under this heading are: (a) payments made to the spouse or any relative or dependant of a person who holds or has held an office or employment. other than money. (1) Severance Pay For Income Tax purposes.00.

. the employer must contact the Board of Inland Revenue (PAYE Section) for additional guidance. has no objection to employers using Computer Printed T.000 of the Retirement Severance is exempt from income tax.000 of such benefit is exempt from Income Tax if at the date of his retirement: (a) he is not entitled to a pension other than under the National Insurance Act or the Old Age Pension Act. 4 Supplementary T. shall not be treated as income of any other year and shall be charged separately at the average rate of tax of the employee for the immediately preceding year of income. (1) When a person receives a retirement benefit. Amended forms must also be submitted to the Board for approval. the Board of Inland Revenue became responsible for the due computation. T. an amount not exceeding $100. that he has attained the age of 60 years. Health Surcharge With effect from 1st June. collection and recovery of Health Surcharge. and any subsequent amendments are complied with. The Board. (b) any amount remaining after the deduction of (a) above is to be included in the individual’s chargeable income and charged to tax according to scale rates. 1987. and (b) a specimen of the form is submitted to the Board initially for approval. Employers using the computerized form will be notified by the Board when changes are to be made to the form due to amended legislation or any other reasons. and (c) he produces evidence to the satisfaction of the Board of Inland Revenue(i) (ii) (2) Calculation of Tax (a) an amount of $100.D 4 certificates provided that: (a) the provisions of the income Tax (Employment) Regulations. 5. (b) he is not a member of an approved pension Fund Plan. (1) Rates and method of effecting payments: that he has retired from insurable employment within the meaning of the National Insurance Act.D. (4) Retirement Severance Benefit Before payment of Retirement Severance Benefit is made. or of a Fund or Scheme that is a Provident Fund.(b) Any amount remaining after deducting (a) above shall be treated as income for the year in which the employment is terminated and irrespective of when payment is received. 4 certificates are normally supplied to employers by the Board of Inland Revenue each year accompanied by instructions for completion and distribution.D. however. 4.

(c) Individuals whose sole source of income is from pensions.g. (c) Health Surcharge should be deposited with the Board in cash or by certified cheque on Form C-3L on or before the 15th day of the month following the month in which the deduction was made. (2) Health Surcharge is not to be deducted from the following: (a) individuals under the age of sixteen (16) years. (b) whether a claim to a tax deduction is admissible. The disputes may include the following: (a) the liability to tax of the emoluments. Death of Employee . Disputes If any dispute arises between employer and employee the Board will determine the issue. tax deductions are to continue as if no change has occurred. (Deductions must cease on the day before the individual’s sixtieth birthday).D. of course. 1 submitted to him by the employee. cease.25 per week. 9. Retirement of Employee If a pension is paid after retirement of an employee by the former employer. Change of Employment If an employee changes his job.99 or whose weekly income is less than $109. the trustees of a pension fund. the deduction of tax by the former employer will. 10.80 per week. the pensioner must provide the trustee with a T. the Health Surcharge to be deducted should be $4.00. (c) whether emoluments fall within any of the classes for which the Board is to determine the tax deductible.D.(a) employees whose monthly income exceeds $469. If. the pension is paid by a person other than the former employer. 6. the Health Surcharge to be deducted should be $8. 7.00. 8. The new employer will deduct on the basis of a new T.. e. however.99 or whose weekly income is more than $109. (b) employees whose monthly income is less than $469. 1 for the purpose of tax deductions. Agreements not to Deduct are Void Every employer is under an obligation to deduct the tax and any agreement made by such employer not to withhold or deduct tax is null and void and will attract penalties. (b) individuals who have attained the age of sixty (60) years.

PAYMENT AND ACCOUNTING FOR TAX AND HEALTH SURCHARGE 1. the new employer is responsible for the tax deductions. Change of Ownership-Business If a business changes hands. However where a person ceases to carry on business. a record of emoluments paid to each employee and taxes deducted from each payment. in addition to the tax payable. unless the Board directs otherwise. The prescribed forms which must accompany each payment are: C-3F PAYE Tax Deduction Remittance Form. 4. 3. 11. to the satisfaction of the Board. Death of Employer If an employer dies (but the business continues) his personal representative must continue to make tax deductions.If emoluments are due to an employee after his death. Payment of tax to the Board of Inland Revenue All taxes deducted must be paid by the employer to the Board on or before the fifteenth (15th) day of the month following the month in which the deductions were made. an additional amount of 100 per cent (100%) of the tax or forty dollars ($40. and C-3L Health Surcharge Deduction Remittance Form. All records relating to the payment of emoluments and taxes deducted must be made available for inspection by the Board at the premises of the employer.00) whichever is the greater. the tax must be paid within seven (7) days after the person ceases to carry on business. commencing from the date the payment became due to the date of payment. It is part of a duly authorized Field Officer’s duties to inspect these records. deductions are to continue as if he were alive. Penalty for Failure to Deduct and Remit Taxes Any person who fails to deduct or to remit the taxes deducted to the Board on or before the date prescribed is guilty of an offence and shall pay. Interest is also chargeable on both the tax and the additional amount at the rate of twenty per cent (20%) per annum. 12. Distribution of Certificates of Emoluments Paid and Taxes Deducted . 2. VI. Accounting for Tax Deducted and Keeping Records Every person paying emoluments must keep.

One copy of T. and (c) on cessation of a business.D.D. 1 dated 31st . 4 Supplementary) in respect of each employee. Deductions and must be separately accounted for and remitted to the Board of Inland Revenue.(i) (ii) On or before the last day of February of each year following the year in which taxes including Health Surcharge were deducted. Persons Paying Emoluments in the Public Service Persons attached to the accounting or sub-accounting units in the Public Service who act as “employers” of public servants should refer to Ministry of Finance Circular No. The Board also requires one copy of the T. not later than one (1) month after. 4 Certificates. When T. 4 Summary Form which is a statement of total emoluments paid to all employees and total tax deducted. 4 Certificate 8. PAYE QUARTERLY 7. 4 Summary Form.D. 4 Certificates are to be delivered by the employer: (1) To the employee and the Board: (a) on or before the last day of February of each year following the year in which tax was deducted. 6. the employer must give the employee two T.D. 5. must be sent to the Board not later than the last day of February of each year. The Tax deducted through a Garnishee Order must not be shown on the T.D. Reconciliation of Records (a) The total of PAYE and Health Surcharge deductions as per T. The Act (Section 112) enables the Board to instruct the employer to deduct such arrears from pay in addition to any PAYE Tax due in accordance with these tables. (b) where a “Garnishee Order’’ is served on the employer. (c) The total tax deductions as per T. Deductions have been insufficient or where there is other income. (b) on cessation of employment. (b) The cumulative total on the last Remittance Form for the year in respect of Income Tax and Health Surcharge.D.D.D. 4 certificate (T.D. (2) Upon the death of an employee-to the legal personal representative or next of kin and the Board. Such arrears of tax deducted must be kept quite separate from PAYE. by the fifteenth day of the month following the month in which the death occurred. 4 certificates (original and duplicate). Accounting for Arrears of Tax It is frequently necessary to collect arrears of tax from employees in cases such as(a) where PAYE. 4 Certificate to be Delivered T.

and allowable Deductions granted to each employee of the organization. Port of Spain. bonus.000 … … Rates of Tax 28% 35% Income $50.000 For every dollar in excess of $50. wages. October 31st and January 31st.000 PAYE QUARTERLY REMMITTANCE RECONCILLATION REPORT The Board of Inland Revenue wishes to advise that ALL EMPLOYERS are required to complete the QUARTERLY REMITTANCE RECONCILIATION REPORT. Victoria Courts. as long as the designated format is maintained. Cor. Queen and Edward Streets. completed and submitted quarterly to the PAYE section. Port of Spain by the end of the month following the quarter being reported on. Taxpayer Relations Section Inland Revenue Division . Quarterly reports are due on April 30th. All information must be recorded accurately. Victoria Courts Corner Queen and Edward Streets.January.000 Tax $14. July 31st. i. This Circular sets out the procedure to be adopted and forms to be used when paying or accounting for tax deductions. These reports which are mailed to employers should be reproduced. Further information can be had by contacting the PAYE Section at 625 2127 or the Taxpayer Relations Section at 623 7106 ext 321. Persons who have not received copies in the mail can obtain blank forms at the Miscellaneous Taxes Unit. Information contained on this Form represents cumulative totals of PAYE and Health Surcharge deducted. 1979. pensions and benefits paid. The Board will accept the information on diskette. 2002 TAX RATES 1997 – 2002 Chargeable Income For every dollar of the first $50. salaries.e. VII. The Reconciliation Reports lend to the effective functioning of the PAYE System.