Investor Presentaiton
Corporation Tax
measure
K
Overview of measure
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Measure Capital allowances
The Minister proposed to increase the wear and tear allowance rate on plant and equipment from 25% to 30%.
This measure will take effect on 1 January 2021.
Commentary
This would be a welcome increase in the allowance since this rate of 25% has been in effect since the changes
to allow for the pooling system for plant and machinery acquired on/after in 1 January 1995. This would allow
for a tax deduction of an additional 5% on the cost of plant and machinery acquired and used in the business of
the company. This measure would also benefit the manufacturing sector.
This may act as an incentive for investment in fixed assets since it could allow companies to expedite their
capital allowances claim.
Some other considerations that the Minister may wish to consider introducing is in respect of an uplift of 150%
on investment in capital assets where the expenditure is incurred in outfitting a business to combat the
ill-effects of the COVID-19.
What's Inside
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Territory Leader's message
Tax Leader's thoughts
Budget overview
Budget fundamentals - 2021
Historical economic data
Energy and energy related tax regime
Corporation tax
Value Added Tax & other indirect taxation
Personal Income tax
Stamp Duty
Summary of other measures
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About PwC
PwC | Trinidad and Tobago 2021 national budget
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