A number of financial institutions in Trinidad and Tobago offer products called annuities. An annuity is a financial product that allows you to pay premiums and then receive regular or lump sum payments in the future, usually upon maturity of the plan or at retirement. One advantage of an approved deferred annuity is that the contributions are tax deductible. Buying an annuity now can help lower your tax bill and provide a guaranteed source of income later in life.
How do annuities work?
Your financial institution or insurance company can provide you with information on the annuities they provide.
- The annuity you purchase must be approved by the Board of Inland Revenue to benefit from the tax deduction.
- The total of your pension contributions, National Insurance contribution and your approved annuity premiums must not exceed TT$30,000.00 in any given tax year. Any annuity premiums above this amount are not tax deductible.
- Your annuity will mature when you are between 50 and 75 years old, depending on the terms of your annuity.
- If you decide to withdraw your money before the maturity date, you will only receive a refund of your premiums. You will also be subject to a 25% tax on the amount you withdraw.
- An employer may elect to purchase a corporate annuity on behalf of an employee. The employer alone contributes to this type of annuity.
Where can I find more information?
Please contact your financial institution or insurance company for information on annuities they offer. You can also contact the Inland Revenue Division of the Ministry of Finance, or follow the links below for more information.
The Legal Section
Inland Revenue Division
Ministry of Finance
6th Floor Trinidad House
St. Vincent Street
Port of Spain
Trinidad, West Indies
Tel. (868) 623-1211-4
Other Online Resources: