TAX & NIS AMNESTY EXTENDED TO AUGUST 2, 2025: WHAT YOU NEED TO KNOW

June 4, 2025
By Cari Chandler-Martin

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A tax amnesty is a time-limited opportunity offered by the State that allows taxpayers to pay outstanding taxes without having to pay accrued penalties and interest. It’s essentially a financial reset—a legal way to clear your debts to the tax system without facing the full cost of late payment.

In the case of this extended amnesty, all penalties and interest on eligible taxes will be completely waived, once the base tax is paid in full before the August 2, 2025 deadline.

This can result in tens of thousands of dollars in savings for some taxpayers.

Taxes Covered Under the Amnesty
The amnesty covers all penalties and interest related to the following tax categories, for the year of income ending December 31, 2023 and prior:

• Individual Income Tax
• Pay-As-You-Earn (PAYE)
• Health Surcharge
• Corporation Tax
• Business Levy
• Green Fund Levy
• Value Added Tax (VAT)
• Petroleum Profits Tax (PPT)
• Supplemental Petroleum Tax (SPT)
• Unemployment Levy
• Stamp Duty
• Gaming Amusement Tax
• Hotel Accommodation Tax
• Club Gaming Tax
• Withholding Tax
• Insurance Premium Tax
• Tax on Financial Services

Practical example:
If your business owes $120,000 in VAT and $30,000 in penalties and interest from 2022, under this amnesty you can pay only the $120,000—and save $30,000. That’s the kind of difference this policy can make.

National Insurance (NIS) Amnesty – What You Should Know
In addition to tax relief, the amnesty also includes a waiver of interest and penalties on unpaid National Insurance contributions for periods prior to October 1, 2024.

This is particularly relevant for employers who:

• Were registered with the National Insurance Board (NIB) before October 1, 2024, and
• May have accumulated arrears in contributions due to financial difficulties, COVID-19-related disruption, or administrative errors.
  
  

Important Clarification: The amnesty does not erase the principal contributions owed. Employers must still pay all base contributions to benefit from the waiver on penalties and interest.

What Happens If You Ignore the Amnesty?
Here’s what the public must understand: This is not a permanent pardon.
If a taxpayer or employer fails to pay the outstanding amounts by August 2, 2025, the penalties and interest that would have been waived under the amnesty will be revived and become legally enforceable again, as if the amnesty was never granted.
This could mean facing:

• Substantial financial burdens
• Legal action from the BIR or NIBTT
• Seizure of property or garnishment of wages
• Ineligibility for certain government contracts or benefits
• Possible damage to your professional or business reputation

Who Should Take Advantage of the Amnesty?
This amnesty is ideal for:

• Self-employed individuals who haven’t filed or paid income taxes for previous years
• Small and medium businesses that may owe PAYE, VAT, or Corporation Tax
• Large corporations with legacy tax matters in dispute or arrears
• Employers who owe NIS contributions
• Heirs or executors handling deceased estates with unresolved tax or stamp duty matters
• Landlords and property owners with unpaid Stamp Duty or Withholding Tax
• Anyone who may have miscalculated, delayed, or overlooked filings or payments in past years
  
  

Why You Should Act Now – And Not Wait
Although the deadline is months away, the reality is that resolving tax and NIS issues takes time. In many cases, documents must be sourced, reconciliations done, and negotiations entered into.
Do not wait until the last minute. 

​Start the process now.

See the Media Release issued from the Ministry of Finance HERE

Cari Chandler-Martin is the Managing Partner at Aurora Chambers. She can be reached at a[email protected].

​Important Notice: This article is for informational purposes only and does not constitute legal advice. Always seek consultation with an attorney for your specific legal concerns, as only a professional familiar with the details of your situation can provide proper guidance. ​

​This website is managed by AURORA Chambers; a law practice in Trinidad and Tobago.

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