Investor Presentaiton
Corporation Tax
measure
K
Overview of measure
Measure - Creative industries
A proposal to increase to TT$12m the current tax allowance of TT$6m for corporate sponsorship of nationals in
the local fashion industry, audio, visual or video productions for the purpose of local education or entertainment
and local production companies in respect of their own productions as well as for companies which sponsor
sporting activities or events or sportsmen or art and culture. This measure will take effect from 1 January 2021.
Commentary
Whilst understanding the aim of increasing the deduction for this expenditure is to support the artistes;
sportsmen and fashion industry professionals who may be struggling more due to the pandemic - this
allowance was increased from TT$3m to TT$6m in the 2020 budget. At that time, we were of the view that
careful evaluation was needed to assess the efficacy of this allowance in encouraging private sector companies
to sponsor the targeted creative industries given that many of these companies practice overall conservatism
towards expenditure. As a result, an increased allowance at this time may not bear fruit, but in the absence of
any historical data to garner insights into the effectiveness of the previous measure, it is difficult to speak to
this.
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
Let's talk
About PwC
PwC | Trinidad and Tobago 2021 national budget
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