Persons | 75.01

Persons do not have to pay Business Levy if:

Your emolument income exceeds 75% of your total income.

You are still within 3 years of the start of your business.

Your gross sales or receipts for a year has never exceeded TT$250,000. However, if the company’s sales have exceeded TT$250,000 in a year, then it must continue to pay Business Levy regardless of their sales amount.

If there are reasonable grounds to believe the sales will exceed TT$250,000 for the current year then Business Levy must be paid in the current year.

Your gross sales or emolument income are exempted from Income Tax.

Companies | 75.02

Companies that are still in the first twelve months following their registration.

The definition of Persons includes Companies in it therefore, companies also benefit from the three (3) years grace for Business Levy.

A company does not have to pay Business Levy if its sales for a year has never exceeded TT$360,000. However, once the company’s sales have exceeded TT$360,000 in a year, then it must continue to pay Business Levy regardless of their sales amount.

If there are reasonable grounds to believe the sales will exceed TT$360,000 for the current year then Business Levy must be paid in the current year

Companies or statutory corporations exempt from Corporation Tax.

Companies that are subject to tax under the Petroleum Taxes Act.

If the estimated gross sales turn out to be less than the actual sales for the quarter, the difference in business fund levy must be paid by the last day of the next quarter. 75.02 | BLU example 1

Please note that if you pay Business Fund Levy amounting to less than 90% of the amount that is actually required to pay, there is a further 15% annual interest charge on the difference between the 90% and the amount paid starting at the end of the quarter the levy was incurred. 75.02 | BLU example 2

BIR may automatically refund you without an application from you within 2 years of overpayment.

You many also receive a refund if an application was made in writing by you within twelve months from the day on which the overpayment was made or the day on which the notice of assessment by BIR was served.

However, if you owe BIR any payments, the Board can choose to apply the amount to be refunded against the amount owing to them.

These refunds are subject to an interest rate of 4% per year. 75.02 | 75.01

If you do not pay any Business Levy, you must pay a penalty annual interest rate of 20% on the amount required.
75.02 | 75.01