Global Daily Tax News, Trinidad And Tobago To Introduce Transfer Pricing Regime, (Oct 16, 2025)

The Government of Caribbean territory Trinidad and Tobago has committed to implementing a new transfer pricing regime, to stem tax revenues lost to tax base erosion and profit shifting.

In its newly released Budget, the Government said: "Multinational corporations must pay their fair share of taxes. For years under the previous Government, the issue of Transfer Pricing was raised but never fully addressed in a cohesive and structured manner."

"A study by the Economic Commission for Latin America and the Caribbean (ECLAC) estimated that Trinidad and Tobago lost approximately $17.5 billion over eight years due to the failure to act on Transfer Pricing. Until now, no effort has been made to protect the public purse."

"This Government will once and for all review, make adjustments and implement Transfer Pricing legislation to secure and fortify our revenue base."

"This primary legislation will be followed by secondary legislation and regulations that will provide the detailed rules, methodologies and compliance obligations to ensure smooth and effective implementation."

"Concomitantly, a comprehensive training program for Transfer Pricing techniques, documentation requirements, and audit methodologies will be rolled out at the Inland Revenue Division."

"These initiatives will ensure that multinational companies that operate in our jurisdictions pay their fair share of taxes to the people of Trinidad and Tobago."

"What those opposite failed or refused to do in 10 years, we will do in 2 years, in the interest of the tax-paying citizens of Trinidad and Tobago. The benefits to Trinidad and Tobago are wide-ranging, securing revenues and adjusting profit shifting in key sectors, particularly oil, gas, petrochemicals, finance, and services."

The Government said it will soon table draft legislation before parliament to introduce transfer pricing rules, as well as engage with stakeholders on the proposals. The Government also noted that it is endeavoring to have the territory removed from the EU's tax blacklist of non-cooperative territories, with one requirement being that the territory must engage in the BEPS Action Plan's minimum standard regarding country-by-country reporting.