00:01PricewaterhouseCooper, Trinidad and Tobago says the government's fiscal plan is moving in the
00:05right direction, but the projected improvement will depend on revenue collection, energy prices
00:10and spending discipline. The 2027 budget forecast revenue of $59.7 billion and expenditure
00:18of $63.4 billion, leaving a deficit of approximately $3.6 billion. But the firm
00:26point to another significant financial obligation, approximately $70 billion in debt due
00:32over the next five years. Territory and tax leader Angelique Barth says, quote,
00:39the direction is welcome, but the landing is not guaranteed, end quote. For businesses,
00:43one of the most consequential changes is the proposed restriction on using accumulated tax
00:49losses. From January 1st, companies will be allowed to offset only 75% of their chargeable
00:55profits using losses carried forward from previous years. PricewaterhouseCooper says the losses will
01:01not disappear, but businesses returning to profitability could face tax bills before they
01:07have fully recovered from their losses. This is estimated to raise $430 million in revenue.
01:14PwC also warns that companies paying profits to overseas shareholders will face higher withholding
01:20taxes, with the rate increasing from 8% to 10% generally and from 3% to 5% for
01:27distributions to
01:28non-resident parent companies. It says government's efforts to raise revenue must not weaken the private
01:34sector's ability to invest, expand and create employment. PwC says, quote, Trinidad and Tobago cannot
01:41tax its way to prosperity from a static base, end quote. The proposed tax on remotely supplied services from
01:48overseas is another concern for the business community. From January 2027, withholding tax is expected to
01:55apply to certain management, technical and other prescribed services supplied remotely by non-residents.
02:02PwC estimates the measure could raise $300 million. The firm says businesses that depend on specialist
02:09services from overseas will need to examine their contracts, payment arrangements and eligibility for
02:15relief under double taxation treaties. Meanwhile, from March 1st, VAT is proposed for digital and
02:22remote services supplied by non-resident providers, including streaming services, software and digital
02:29platforms. PwC estimates the measure could generate $18 million, but says the final rules must be
02:36clear enough to prevent double taxation and avoid creating unnecessary barriers for international service
02:42providers. PwC says, quote, the strongest tax reform is not necessarily the one with the largest
02:49first-year yield. It is one that improves compliance, attracts productive activity and broadens the tax base
02:56over time, end quote. The petroleum sector faces a separate increase with the unemployment levy proposed to
03:02rise from 5 to 8 percent from January 2027. PwC says the increase represents a 60 percent rise relative to
03:10the
03:11existing rate and will add to the overall tax burden on petroleum companies. The firm questions how the
03:18cumulative fiscal regime will affect the country's ability to attract the capital needed to develop
03:24new energy projects, particularly as natural gas production remains below its 2014 peak.
03:31Ravishita Wari, Rav Narayan, TV6 News.
03:34Ravishita Wari, Ravishia Wari, Ravishita Wari, Ravishita Wari, Ravishita Wari.
