Returning to Trinidad & Tobago? Well, there is good news for you! The government of Trinidad & Tobago is granting tax concessions to persons who are retuning home to reside permanently.

In 1994, Government in an attempt to encourage nationals to return home too a decision to grant tax concessions on motor vehicle and household effects imported by such persons. The following is a summary of benefits which a retuning national is granted.

MOTOR VEHICLE

(A) Requirements
In order to qualify for any relief of taxes the person must satisfy all the following conditions:
1. the person must be eighteen (18) years or older and
a. is a citizen of Trinidad & Tobago, or
b. as formerly a citizen of Trinidad & Tobago, or
c. has citizenship of two (2) countries one of which is Trinidad & Tobago, or
d. is the spouse of a person referred to in sub-paragraphs a. b. or c above

2. the person is the registered owner of the vehicle for at least six (6) months prior to his/her return to Trinidad & Tobago

3. must have resided abroad for a continuous period of at least five (5) years immediately prior to return to Trinidad & Tobago

4. intends to reside in Trinidad & Tobago permanently

5. must import the vehicle six (6) months prior to or after his/her return.

6. must not sell or transfer the vehicle within two (2) years of its importation

Once All of the above conditions have been satisfied, then in the case of a left hand drive vehicle, the importer is not required to obtain an import licence.

(B) Relief from Customs Duty
Customs duty is normally payable at the following rates:
a. Vehicles with an engine size not exceeding 1599 cubic capacity (cc) 20%
b. Vehicles with an engine size exceeding 1599cc but not exceeding 2000cc 25%
c. Vehicles with an engine size exceeding 2000cc 30%
Customs duty is based on the Cost, Insurance and Freight (C.I.F) value of the vehicle.

A returning resident can benefit from the relief of Customs duty at the following rates:
i. where he is the registered owner of the vehicle for more than six (6) months but not more than one (1) year, 25% of the duty payable. In other words the importer pays 75% of the duty payable
ii. where the registered owner of the vehicle for more than one (1) year but not more than (2) years, 50% relief of the duty payable.
iii. where he is the registered owner of the vehicle for more than two (2) years, 90% relief of the duty payable. In other words, the importer pays 10% of the duty payable.

Relief from Value Added Tax (VAT)
Value Added Tax is payable at a rate of 15%. It is calculated in the following manner:
15% (C.I.F. value + Customs Duty) = VAT payable
There are no reliefs from the payment of VAT in respect of a motor vehicle imported by a returning national.

(C) Relief from Motor Vehicles Tax
Motor vehicle is normally paid at the following rates:

However a returning national may be granted relief from the payment of Motor Vehicle Tax at identical rates in the case of Customs Duty as specified in (B), (i) - (iii) above.

HOUSEHOLD EFFECTS

Household Effects – categories
There are two (2) categories of household effects:

i. those that in the use and possession of the passenger for at least one (1) year – No duty and taxes are payable. Any person can benefit from this measure.

ii. In the case of household effects which are in the use and possession for less than one (1) year, a returning national may be granted tax concessions but must satisfy all the following conditions
a. Must have resided abroad for at least five years and returning home to reside permanently
b. The household effect must he imported within two months before or after the arrival of the returning of the national or such further period as the Controller of Customs and Excise may allow in any special circumstances
c. The household effects must be owned by the importer and must not be for sale or exchange
d. The goods must be allowed by the Controller of Customs and Excise
e. The total value of the goods must not exceed a C.I.F. value of $1000,000.00TT