Taxation of operators and players (Trinidad and Tobago)

The tax picture of the gambling sector of Trinidad and Tobago consists of three levels: national taxes (corporate tax, VAT), special fees/licenses for gambling activities (reform of 2021) and taxation of winnings from players. Key norms are confirmed by the materials of the Tax Administration (IRD), the Ministry of Finance and the texts of bills/acts.

1) Taxes and fees of operators

1. 1. Corporate income tax

Resident companies are subject to global income tax, the standard base corporate tax rate is 30% (other regimes are possible for certain categories). This is a general, "non-industry" tax applicable to gambling enterprises.

1. 2. VAT on services

Trinidad and Tobago's standard VAT rate is 12.5%. VAT registration, invoicing with VAT, filing returns and offset of "input" VAT are valid according to the general rules of the Ministry of Finance/IRD.

1. 3. Special fees and move to a single license system

Adopted by the Gambling (Gaming and Betting) Control Act, 2021 creates the Gambling Control Commission (GCC) and transfers land casinos/halls, bets and suppliers to a licensed model with fees/payments to the state. The expected fiscal effect of the "whitewash" and fees was estimated by the authorities at hundreds of millions of TT $ per year. Full implementation is in stages (parts of the act have already been declared, the rest are in launch).

1. 4. Before the reform: who levied taxes on the gaming sector

Historically, tax collection from gambling/gaming activities was carried out by the Board of Inland Revenue and enforcement by the police; the government emphasized that these taxes are not levied directly "manually" by government agencies, but go through the established IRD procedures. This practice formed the basis of subsequent centralization in the GCC.

2) Taxing players

2. 1. Lottery winnings (NLCB)

From August 13, 2018, cash prizes for NLCB lotteries over TT $1,000 are subject to a 10% deduction (Lottery Winnings Tax). The organizer makes a hold when paying - this is visible to the player right in the calculation of the prize. The tax applies only to cash prizes; natural winnings (home/car) do not fall under this fee.

2. 2. Non-lottery winnings

For winnings from other forms of gambling (casino/betting) that are not subject to lottery tax-withholding, a general tax regime is applied depending on the qualification of income and the status of the payer. Since sector regulation is in the implementation phase of the 2021 act, and retention practices depend on bylaws and source of income, players are advised to check with the IRD on their personal situation (residence, source, nature of income).

3) Examples of tax scenarios

Ground floor operator (after full implementation of act 2021): pays corporate income tax, maintains VAT records on services, pays license fees/GCC payments, complies with reporting and AML/KYC.

NLCB Lottery Player: Wins TT $8,000; a 10% deduction is applied to the payout for an amount exceeding the TT $1,000 threshold (the mechanics of the deduction are shown in the IRD FAQ), and the player receives a prize minus tax.

Service provider to operator (IT/marketing): issues invoices with VAT 12.5% (if registered), declares VAT and corporate tax according to general rules.

4) Responsibility, AML/KYC and Reporting

Even before the full launch of all sections of Act 2021, there is horizontal supervision under AML/CFT: sector participants are included in the "listed businesses" list and are required to register, implement internal controls and submit suspicious transaction reports. The new model through GCC strengthens compliance standards, technical reporting and interaction with FIU.

5) What to look for in 2025-2030

1. Bylaws for reform 2021: detailing types of licenses, fees, GGR reporting and advertising/RG rules. Keep an eye on the GCC communique.

2. Consolidation of VAT practices: correct determination of the object of taxation and deduction of "input" VAT in mixed transactions.

3. Transparency for players: maintaining a 10% hold on lotteries and possible formalization of approaches to other wins as the market "whitewashes."

FAQ (short)

Is VAT on bets withheld from the player?

VAT is a tax on the supply of goods/services by the operator, not a separate "rate tax" on the player; the applicability of VAT depends on the nature of the services and the status of the supplier.

Do they always keep 10% from winning?

Only for cash lottery prizes NLCB over TT $1,000 - according to IRD rules. For other winnings - see general tax provisions and IRD clarifications.

When will the entire "new" mode work completely?

Act 2021 has already been adopted; sections are introduced in stages. Specific timelines and procedures are published by Parliament/Regulator (GCC).

For operators, the basic matrix is as follows: corporate income tax (benchmark 30%), VAT 12.5% ​ ​ on services, as well as special fees and licensing in the logic of the Gambling Control Act 2021 as it is fully implemented. For players, there is already a clear rule on lotteries: 10% deduction from cash prizes over TT $1,000. All together - the transition to a transparent fiscal model: understandable fees for business, protected payments for players and stable budget revenues.