Finance Ministry reminds of measures to start January 1, 2022

THE Finance Ministry on Friday reminded members of the public about 16 measures announced in the 2022 budget that will take effect from January 1 (New Year's Day). The reminder was posted on the ministry's Twitter account.

These were:

– a five per cent reduction in tax rate for significant exporters of goods for three years

– 50 per cent tax exemption on the first $100,000 of chargeable income for new companies whose core business activities are digitisation and technology solutions

– five per cent reduction in tax rate for three years for small, medium enterprise (SME) companies whose core business is technology solutions and digitisation

– full tax holiday for the first five-year period to new SMEs listing on the TT Stock Exchange

– $8,000 fine for overweight trucks

– five per cent reduction in tax rate for the manufacturing sector for two years on qualifying projects

– reduction in the rate of withholding tax to eight per cent on distribution made and three per cent where such distribution is made to a parent company, subsequent to the amendment of the Income Tax Act

– increasing the limit to $30,000 on mortgage interest paid by first-time homeowners for five years from the date of acquisition

– increase in relief granted on approved pension and annunity plans to $60,000

– 100 per cent exemptions on VAT, motor vehicle tax and customs duty on imported battery-powered electric vehicles no more than two years old

– 100 per cent exemptions on VAT and customs duty on specified therapy equipment for the hearing impaired, visually impaired and physically disabled

– ten per cent increase in utility rebates on bills $300 or less

– 100 per cent exemptions on VAT and customs duty on all remaining computer hardware, software and peripherals

– research and development capital allowance (tax relief) of up to 40 per cent of expenditure (in calculating taxable profits incurred by companies in research and development)

– tax credit of 30 per cent up to $500,000 for companies that invest in carbon capture and storage enhanced oil recovery

– 150 per cent tax allowance of up to $1 million on corporate sponsorship to heritage properties under the oversight of the National Trust.