Business Levy is 0.6% of your gross sales or receipts. As a sole trader, it only applies once your gross sales are over TT$360,000 a year, and you don't pay it in your first three years. You also only pay it if it's more than your income tax, so in effect you pay whichever is higher. Sole traders don't pay Green Fund Levy. That 0.3% levy is for companies and partnerships.
Business Levy at a Glance
| Rate | 0.6% of gross sales or receipts |
| Charged on | Sales, before expenses. Salary income isn't included |
| Threshold | Gross sales over TT$360,000 |
| New businesses | Exempt for the first three years |
| Paid | Quarterly: 31 March, 30 June, 30 September, 31 December |
| Interaction with income tax | Income tax paid counts against it, so you pay the higher of the two |
"Gross sales or receipts" means everything your business takes in during normal trading, before any deductions for business expenses.
Who's Exempt
The IRD lists four exemptions for individuals. You don't pay Business Levy on:
- Sales or receipts that are exempt from income tax under any Act.
- Your income, if more than 75% of it is salary or wages (emolument income).
- Your sales, if they were TT$360,000 or less in the previous year, unless there's good reason to believe they'll go over TT$360,000 this year.
- Your sales during the first three years of the business.
On the three-year rule, the IRD's pages use slightly different wording: one counts from when the business started, another from when it was registered. If your start date and registration date are far apart, check with the IRD.
Partnerships: each partner pays Business Levy personally, not the partnership. A partner is only liable if their share of the gross sales is over TT$360,000.
How It Works With Income Tax
Business Levy is effectively a minimum tax. You work out both your income tax and your Business Levy for the year. The income tax you pay is credited against the levy, up to the amount of the levy.
Example: TT$1,000,000 in gross sales. Business Levy is 0.6% × 1,000,000 = TT$6,000.
| Low-profit year | Normal year | |
|---|---|---|
| Income tax for the year | TT$4,000 | TT$10,000 |
| Business Levy | TT$6,000 | TT$6,000 |
| Extra levy to pay | TT$2,000 | TT$0 |
| Total paid | TT$6,000 | TT$10,000 |
So the levy only bites in a year when your profit, and therefore your income tax, is low compared with your sales.
On the 400-ITR, every self-employed person must complete Schedule S and Schedule T (Business Levy). Quarterly payments you've made go in Schedule R.
Paying Business Levy Quarterly
- Due dates: on or before 31 March, 30 June, 30 September and 31 December. These match your quarterly income tax and Health Surcharge payments.
- Use actual figures. Base each payment on the quarter's real gross sales. You can estimate only the last 1 to 3 days of the quarter.
- Underestimated? Pay the difference by the last day of the next quarter.
- Interest: if you pay less than 90% of the quarter's levy, interest is charged on the shortfall. Late payments attract interest at 20% a year from the day after the quarter ends.
- Balance: anything still owing for the year is due by 30 April.
Green Fund Levy
| Rate | 0.3% of gross sales or receipts |
| Who pays | Companies and partnerships |
| Sole traders | Don't pay it |
| Exempt income | Included, and it applies even if the business is exempt from Business Levy |
| Paid | Quarterly: 31 March, 30 June, 30 September, 31 December |
The IRD is clear: "The Sole Trader does not pay Green Fund Levy." A partnership pays it using the partnership's BIR number, not the partners' own numbers.
Green Fund Levy isn't a deduction when working out taxable profit and isn't a credit against tax. It's a straight extra cost for companies and partnerships. A partnership that pays less than 90% of a quarter's levy is charged interest at 20% a year on the shortfall.
If You Run a Company Instead
The same 0.6% Business Levy applies to companies. A company pays the higher of corporation tax or Business Levy, and doesn't pay it for the first 36 months from registration. Companies also pay the 0.3% Green Fund Levy. Thinking about switching structures? See how to register a business for tax.
Let TaxDash Work It Out
TaxDash's sole trader return works out your net profit, your income tax and your Business Levy together, applies the TT$360,000 threshold and the three-year exemption, and shows you what you owe. Then it fills in your 400-ITR on e-Tax for you to review and submit.
For the rest of your obligations, read our sole trader tax guide and how much income tax you'll pay. Bidding for a government contract? You'll also need a tax clearance certificate, and unpaid quarterly payments can hold it up.
Sources: IRD: Small Business Person (Business Levy, Green Fund Levy, Health Surcharge) · IRD: Self Employed/Sole Trader · IRD: Instructions for Forms 400 ITR and 440 EMO · PwC Worldwide Tax Summaries: Individual taxes on personal income · PwC Worldwide Tax Summaries: Corporate taxes · EY: Focus on Trinidad & Tobago Budget 2027. TaxDash is independent and not affiliated with the IRD. This is general information, not tax advice.
Frequently asked questions
What is business levy in Trinidad and Tobago?
A tax of 0.6% on the gross sales or receipts of a business, before expenses. Sole traders and the self-employed pay it when their gross sales are over TT$360,000 a year, and only to the extent it's more than their income tax for the year.
Do I pay business levy and income tax?
In effect, you pay whichever is higher. The IRD lets you set the income tax you pay for a year against your Business Levy for that year. If your income tax is bigger, you owe no extra levy. If the levy is bigger, you pay the difference.
Do sole traders pay green fund levy in Trinidad?
No. The IRD says sole traders do not pay Green Fund Levy. It's charged at 0.3% of gross sales or receipts on companies and partnerships. A partnership pays it under the partnership's own BIR number.
Are new businesses exempt from business levy in Trinidad?
Yes. Business Levy doesn't apply to a business's gross sales for its first three years. The IRD dates this from when the business started or was registered.
When is business levy due in Trinidad?
Quarterly, on or before 31 March, 30 June, 30 September and 31 December, based on that quarter's actual gross sales. Late payments attract interest at 20% a year.
Is business levy based on profit or sales?
Sales. Business Levy and Green Fund Levy are both charged on gross sales or receipts, before any business expenses. Income tax is charged on profit.