WHO FILES A TAX RETURN
- Sole traders & self-employed persons – even if you made little to no income in the year.
- Registered companies – whether you are profitable or not.
- Individuals with additional income sources outside of employment.
- Partnerships – Green Fund Levy
TAX RETURN VS ANNUAL RETURN
Running a business is more than just keeping customers happy and managing sales. Behind the scenes, there are compliance requirements legal and financial obligations you must meet every year to stay in good standing.
In Trinidad and Tobago, two of the most common (and often misunderstood) requirements are the Tax Return and the Annual Return. While they sound similar, they have different purposes, different deadlines, and different filing authorities. Missing either one can cost your business dearly.
This guide will walk you through what they are, why they matter, and how to make sure you stay compliant.
Understanding the Tax Return
A Tax Return is your formal report to the Board of Inland Revenue Division (BIR) that details your income, expenses, and the amount of tax you owe for a given financial period.
It is the government’s way of ensuring that individuals and businesses are paying their fair share of taxes based on actual earnings.
Who Files a Tax Return?
- Sole traders & self-employed persons – even if you made little to no income in the year.
- Registered companies – whether you are profitable or not.
- Individuals with additional income sources outside of employment (such as rental income or investments).
- Partnerships – Green Fund Levy. Note that individual partners pay Income Tax (something entirely different), while the Partnership itself pays Green Fund Levy.
When is it Due?
- Sole traders & individuals: Usually April 30 each year for the previous year’s earnings.
- Companies: Tax Returns must be submitted before October 31st of the following year, while payments must be made before April 30 of this same year in order to avoid penalties.
What’s Included in a Tax Return?
- Total revenue earned.
- Operating expenses (rent, salaries, utilities, etc.).
- Profit or loss for the year.
- Tax payable or refund due.
Key Point:
The Tax Return focuses on financial performance, your numbers, not your company’s legal status.
Understanding the Annual Return
An Annual Return is not about your income or expenses; it’s about your company’s structure and legal details.
It is filed with the Companies Registry to confirm your company’s current status, such as who owns it, who manages it, and how shares are distributed.
Who Files an Annual Return?
- All registered companies in Trinidad and Tobago (limited liability), regardless of whether they are actively trading or not. As of recent (October 2024), partnerships, non-profit organisations and non-profit companies also have to file.
- Not required for sole traders.
When is it Due?
- Every year on the anniversary of your incorporation date for companies and registration date for partnerships.
What’s Included in an Annual Return?
- Company name and registration number.
- Details of directors and shareholders.
- Share capital information.
- Registered office address.
- Any loans or charges in the name of the company
Key Point:
The Annual Return is about providing updates to the Companies Registry about the current status of your business. In other words, they want to know who are your current directors, your current secretary, if your business has changed location from the one last reported, if you issued any new shares, etc.
The Consequences of Missing Deadlines
Filing late, or not filing at all can have serious consequences:
- For Tax Returns: Late fees, interest on unpaid taxes, audits, and legal action.
- For Annual Returns: Fines, loss of good standing, and possible removal (“striking off”) from the Companies Register.
Many business owners mistakenly think that if they file one return, they are covered for both. Unfortunately, that’s not true, these are separate legal obligations.
A Side-by-Side Comparison
Tax Return |
Annual Return |
|
| Filed With | Board of Inland Revenue (BIR) | Companies Registry |
| Purpose | Reports income, expenses, and tax liability |
Updates the Companies registry with company ownership, directors, and structure |
| Focus | Financial performance | Legal standing |
| Who Files | Sole traders, registered companies, self-employed individuals, partners file Income Tax | Companies only, partnerships, non-profit organisations and non-profit companies |
| Deadline | April 30 for individuals; Oct 31 for companies | Anniversary of incorporation |
(See notes above for detailed clarification)
Best Practices to Stay Compliant
Track Your Dates – Mark both deadlines on your calendar to avoid late filing fees.
Keep Records Year-Round – Store receipts, invoices, and contracts so reporting is easier.
Work With Professionals – Accountants and corporate secretaries can help prepare and file on time.
File Even if Inactive – If you earned nothing or made a loss, you still must file to remain compliant.
Plan Ahead – Don’t wait until the last minute; gather your information early
Final Word
The Tax Return and the Annual Return are both essential for keeping your business healthy in Trinidad and Tobago. One ensures that you’re meeting your tax obligations, the other ensures your company remains legally recognized.
At The Timely Entrepreneur Resource & Research Centre, we’ve seen too many businesses face unnecessary fines or lose their legal standing simply because they didn’t understand the difference.
Knowledge is protection and in business, protection means profitability.
Need Help Filing?
We can guide you step-by-step, prepare the required documents, and ensure you meet every deadline without stress.
The Timely Entrepreneur Resource & Research Centre – Helping entrepreneurs in T&T start, manage, and grow the right way. If you need further clarification, please call our Compliance department @ 868 760-6221.