Important sources of taxation are income taxes, a motor vehicle tax (25% to 30%), license duties, property and building taxes, customs and excise duties (including purchase taxes), and petroleum royalties and concessions.
The individual income tax is calculated on net chargeable income, from 28% up to $50,000; and 35% thereafter. A value-added tax (VAT), with a standard rate of 15% in 2003, is levied on most goods and services. Services performed outside Trinidad and Tobago are zero-rated, and medicines are exempted for VAT. The basic corporate tax rate is 35%. This rate is increased to 50% for petroleum companies, with a supplemental petroleum tax. Dividend and interest payments are taxed at 15% and royalties at 20%.