Government of the Republic of Trinidad and Tobago
Economic substance requirements are a key component of the Special Economic Zones (SEZ) framework, ensuring that businesses operating within SEZs contribute meaningfully to economic growth, employment creation, and industrial development. The Trinidad and Tobago Special Economic Zones Authority (SEZA) mandates compliance with economic substance regulations to maintain the integrity of SEZ incentives while aligning with international investment and tax standards.
Economic substance refers to the level of real business activity that an enterprise must demonstrate to qualify for SEZ benefits. It ensures that SEZ enterprises are engaged in genuine economic operations within Trinidad and Tobago, rather than existing solely to access tax or investment incentives.
An economic substance test shall be applied by the Authority to determine whether the:
are adequate, necessary and relevant in relation to its proposed core income generating activities and the size and nature of its proposed operations (SEZ Act 2022).
Applicants are encouraged to include how their company incorporate these areas in their operations.
| Foreign Exchange (FX) Impact |
| Environmental, Social, and Governance (ESG) Considerations |
| Export Focus and Fair Competition |
| Rural Development |
| Focus on UNs Sustainable Development Goals |
| Quality |
To meet economic substance requirements, enterprises must:
Economic substance regulations are essential to protect the integrity of SEZ incentives, promote fair business practices, and comply with international tax and investment frameworks.
SEZ enterprises must adhere to specific compliance criteria, ensuring that their operations meet SEZA’s regulatory expectations.
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TRINIDAD & TOBAGO SPECIAL ECONOMIC ZONES AUTHORITY
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