During the Budget Presentation, Finance Minister Davendranath Tancoo signalled to multinational companies operating in Trinidad and Tobago that the Government’s transfer pricing policy will soon be implemented.
“By closing the loopholes in our tax system we will ensure that we collect every dollar due to the State and put these dollars to work for every single citizen of Trinidad and Tobago.”
Finance Minister Davendranath Tancoo indicated that the Government intends to implement its transfer pricing regime.
“Mr. Speaker, we have taken decisive steps to ensure that multinational corporations operating within our borders contribute their fair share to national development. As promised in Budget 2026, following extensive consultations with key stakeholders and an international review, this government has completed a draft national policy framework for transfer pricing.”
The Finance Minister noted that the Organisation for Economic Co-operation and Development (OECD) will examine the document.
“We have now engaged the OECD to review and strengthen the draft policy. In this fiscal year priority will be given to finalizing the transfer pricing policy and the accompanying primary legislation and to prepare for effective execution.”
Transfer pricing is the setting of prices for goods, services, intellectual property and financing exchanged between related entities or subsidiaries.
Governments care about this internal pricing because it determines which jurisdictions collect taxes on these transactions.