#4 TAXES?!

Taxes, the one word all income earners are afraid of,  lets first understand what taxes are.  Taxes are  compulsory contributions made to the Government of Trinidad and Tobago on profits to stimulate or build the economy.  The money earned from taxes are used to fund road building, construction, garbage collection, subsidies on food items, gas, WASA rates, T&TEC rates Etc.  In short, the money earned from taxes are to benefit all persons in the country to maintain peace and order.  

Now that you have a registered business you are now liable to pay taxes, but before you do so you must have a Board of Inland Revenue Number (B.I.R #).  According to the Ministry of Finance, Inland revenue division a BIR number is, "an identification number used in the administration of tax laws".  The process of acquiring your BIR number is straightforward and free please follow the steps listed here.

Great! Now that you understand the BIR and it processes lets move to taxes that we are so eager to understand.  All taxpayers are entitled to a Personal Allowance of TT$72,000.00 per year.  This means that you do not pay income tax on your first TT$72,000.00 of income.  If you earn less that TT $72,000.00 the same applies.

Once you have exceeded the annual amount of TT$72,000.00 you are required to pay 25% of the amount exceeded. To pay you must fill out this form and/or attach your financial statements then drop it off at the nearest district revenue office. Please note this form must be filled out and dropped off even if you have not exceeded TT$72,000.00.

Well, this brings us to the end of this lengthy post on taxes for any further or detailed information please consult with a chartered accountant or read more here.  Thank you for showing interest in my blog and don't forget hit the subscribe button to stay up to date. 

Stay tuned for my next post on, who to hire, if to hire and why hire?