350 LEGAL IMPACTS OF COVID-19 IN THE TOURISM INDUSTRY 2. THE LAW Tourism in Trinidad & Tobago is governed by the Tourism Development Act, Chapter 87:22 of the Laws of Trinidad & Tobago. This Act provides certain development incentives for any person, firm or corporation that wishes to engage in tourism. The incentives come in the form of tax benefits which the Minister of Tourism may give to an operator or owner of an approved tourism project, and they can be any or all of the following: a) tax exemption on all gains or profits for seven years; b) tax exemption in respect of all gains or profits derived from the initial sale of a villa or condominium or the site for a villa or condominium that forms part of an integrated resort development (IRD), which is an approved tourism project; c) carry-over of a possible tax exemption period from any losses resulting from the operation or renting of an approved tourism project; d) tax exemption in respect of interest received on an approved loan used for an approved tourism project; and e) the granting of a licence to import vehicles required for the tourism project and to pay a significantly reduced rate (ten per cent) of Customs Duty on same. A Tourism project seeking to access benefits must be registered with the Tourism Development Corporation, for all projects in Trinidad, and with the Tobago House of Assembly, for all projects in Tobago. There is a requirement under the Act for a minimum capital investment for all projects under the Act, the size of which depends on whether or not the investor is a local (i.e. a Trinidadian or a Tobagonian) and the type of project. For example, for an international investor to qualify for the tax benefits under the Act, he must invest at least 3.1 million TT$ (Trinidad & Tobago dollar2) for tourism infrastructure. For a local investor, the amount that is required to qualify, for the same project, is only 310,000 TT$. Potential international investors would be wise also to check on the ability to repatriate both profits, as well as any capital expenditure, before making any investments in Trinidad & Tobago and to receive appropriate assurances (which are usually forthcoming) that they will be allowed to do so. 2 For the reader’s benefit, 1 TT$ is worth very roughly 7 US$. The exchange rate fluctuates over time so readers are advised to check same before proceeding.
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