Other Matters - M. Hamel-Smith & Co.
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Tax Allowances

Arts Allowance

This allowance up to a maximum of $450,000.00 is available to companies who sponsor artistic work. To qualify for this allowance a company must incur expenditure in respect of an artistic work. Artistic work means any work of art, whether visual or performing. If a visual work of art, the deduction may only be claimed in respect of the initial acquisition of the work. The work must be done by a national of Trinidad and Tobago and its value certified by an art gallery. In respect of a performing art, the deduction would also only apply if the work is done by a Trinidad and Tobago national and the artist must be registered with the Ministry responsible for culture or with the Tobago House of Assembly.

Sports Allowance

A company which promotes or sponsors sporting activities, events or sportsmen is entitled to claim an allowance in ascertaining their chargeable profits for that income year of the actual expenditure to a maximum of $450,000. To qualify for the allowance in relation to sponsorship of a sportsman, that sportsman must be a Trinidad and Tobago National. There is also express guidance as to what is considered “sporting activities or events”. Such activities or events include athletics, badminton, basketball, boxing (amateur) martial arts, wrestling, cricket, cycling, model aeroplane flying, football, rugby, golf, hockey, netball, baseball, polo, swimming, tennis, weightlifting and yachting. The Act also allows the Minister with responsibility for sports the discretion to prescribe any other activities or events to be covered by the allowance. The list is fairly exhaustive and the allowance will hopefully act as an incentive to companies to sponsor many worthwhile events and enterprising sportsmen.

Audio, Visual, Video Production Allowance

This allowance provides for companies that sponsor audio, visual, or video production. To claim such an allowance the production must be for the purpose of local education or local entertainment. The production could also be reflective of local culture for radio or television. The allowance claimable on a deduction is the actual expenditure incurred to a maximum of $450,000 for each year of income.  A company is limited to an aggregate allowance of $450,000.00 in respect of the allowance available for artistic work, sports, and audio, visual, and video production.

Capital Allowances

These allowances are available to all companies involved in manufacturing trade. Manufacturing trade means any activity involving the mechanical, physical or chemical transformation of materials, substances, or components into new products. It does not include the printing and publicizing of newspapers and other such documents by proprietors.