Partnering for Progress

PARTNERING FOR PROGRESS

LABIDCO is pleased to partner with responsible corporate entities for the continued development of the local and regional energy sector through the La Brea Industrial Estate and the Port of Brighton.

There are numerous incentives offered by the Government of Trinidad and Tobago to companies interested in establishing projects on the La Brea Industrial Estate, including incentives in the manufacturing, maritime and trade exporting sectors.

Entities interested in the La Brea Industrial Estate or the Port of Brighton are invited to complete the Application to Conduct Business at LABIDCO and submit to info.labidco@ngc.co.tt

INVESTMENT INCENTIVES IN
TRINIDAD & TOBAGO

The Government of Trinidad and Tobago has provided several investment incentives for the development and expansion of various sectors across the economy.

Manufacturing Sector

Incentive	Description	Act
Fiscal Incentives	(i) Customs duties on the construction of an approved project; (ii) Value Added Tax; and (iii) Income tax on dividends or other distribution, other than interest, out of profits or gains derived from the manufacture of the approved product during the tax holiday period.	Fiscal Incentives Act, Chapter 85:01
Import Duty Concessions	Exemptions from Customs Duties on raw materials, machinery and equipment and in some cases packaging material based upon the provisions of the Third Schedule of the Customs Act, Chapter 78:01 (as amended)	Third Schedule of the Customs Act, Chapter 78:01
Approved Small Company Status	Approved Small Company Status is a designation granted to a Limited Liability Company, allowing it to derive a tax relief for a period of five (5) years.	Corporation Tax Act, Chapter 75:02
Free Trade Zones	Free Zone activities that qualify for approval include manufacturing for export, international trading in products, services for export and development and management of free zones. Sales into the customs territory are treated as extra-regional imports.	Free Zones Act, Chapter 81:07
Allowances to the manufacturing sector	Where a person carrying on a trade incurs capital expenditure on the provision of machinery or plant for the purposes of that trade, there shall be made to him, for the year of assessment in the basis period for which the expenditure is incurred, an allowance (in this Part referred to as “an initial allowance”) equal to 90% of the expenditure incurred in the provision of machinery and plant for the purposes of that trade.	Chap. 85:04 Income Tax (In Aid of Industry) Act

Maritime Sector

The Government of Trinidad and Tobago has provided the following investment incentives for the development and expansion of various sectors across the economy.

Incentive	Description	Act
Import Duty Concessions	Locally registered firms engaged in ship building and ship repair are allowed duty-free treatment on their machinery, equipment and materials for use in the boat and ship building and repairs industry.	Third Schedule of the Customs Act, Chapter 78:01
Free Zones Status	Firms in the Maritime sector can also benefit from Free Zone Status based upon the provisions of the Free Zones Act, Chapter 81:07; Same as Free Zones Status under the Manufacturing Sector	Free Zones Act, Chapter 81:07

Trade Financing for Exporter

The Government of Trinidad and Tobago has provided the following investment incentives for the development and expansion of various sectors across the economy.

Incentive	Description
Pre-Shipment Financing	To assist exporters with meeting confirmed export orders. This is a short-term loan extended to companies to assist in the payment of inventory. The tenor is customized to the exporter’s needs and usually ranges between 30-270 days. After the agreed tenor has passed, the exporter must repay EXIMBANK 100% of invoice plus interest at a rate of 5-9%.
Post-Shipment Financing	Exporters can receive financing in the form of a loan to cover 85-95% of the invoice value of export sales. The loan must be repaid at rates varying between 5-9% from the assigned proceeds of payments from EXIMBANK approved buyers. This credit period usually ranges between 30-270 days and one hundred and twenty (120) days Bill of Lading or Drawdown.
Demand Loans	Demand loans are accessible by manufacturers seeking to perform equipment upgrades to improve the quality of their export products or renovate their premises. The demand loan must be repaid within one (1) year to five (5) years at rates varying between 5% to 9%. The payment terms usually offered to clients include a moratorium on principal, interest and principal monthly or interest monthly principal on maturity.
Export Credit Insurance	Export Credit Insurance provides risk protection on goods and services exported on credit. This insures exporters against payment defaults by foreign buyers. This service is afforded up to ninety (90) days and the premiums vary based on the buyer’s creditworthiness, payment terms and the economic environment.

COMMERCIAL INTERESTS