What is the Expense reimbursement policy in Trinidad & Tobago?

This article explains how employees can claim reimbursement for business‑related expenses in Trinidad & Tobago (T&T), including travel, mileage, per diems, documentation requirements, and tax treatment. Proper approval and documentation are required to ensure expenses remain non‑taxable and compliant with local tax rules.

1. Travel & Mileage

Mileage Reimbursement (Personal Vehicle Use)

Trinidad & Tobago does not have a legally mandated mileage reimbursement rate for private‑sector employers.

• Employers may apply a company‑defined per‑kilometre rate.
• Reimbursement applies only to business travel (not commuting between home and the regular workplace).
• Mileage should reflect actual business kilometres.

Documentation Required

• Mileage claims should be supported by a mileage logincluding:
  • Date of travel
  • Route / destination
  • Business purpose
  • Kilometres travelled

Parking & Tolls

• Parking and tolls must be claimed as separate expense items
• Receipts are required
• Traffic fines or parking violations are not reimbursable

2. Business Travel Rules

There are no statutory caps on business travel expenses in T&T. However, best practice and tax guidance require that:

• All travel is pre‑approved
• Expenses are strictly business‑related
• Costs are reasonable and necessary

Personal or mixed‑purpose travel may be rejected or treated as taxable income.

3. Transportation & Accommodation

The following expenses may be reimbursed when business‑related and properly documented:

Transportation

• Air travel: Economy class is standard unless a business case for an upgrade is approved
• Taxi / ride‑share: Reimbursable with receipt and stated business purpose
• Bus / train: Tickets serve as documentation (note that receipts may be limited for public transport)
• Rental cars:Allowed with pre‑approval
  • Rental invoice required
  • Fuel must be supported by receipts
• Personal car use:
  • Reimbursed using the company km rate
  • Parking and tolls claimed separately with receipts

Accommodation

• Hotels or short‑term lodging for business travel
• Invoice or receipt required

4. Invoicing & Documentation Requirements

To treat reimbursements as non‑taxable and deductible for the employer, documentation should generally include:

• Itemized receipt or invoice
• Vendor name
• Date of expense
• Amount paid
• VAT (if applicable)
• Description of goods or services
• Business purpose
• Employee name (recommended)

Invoices are not legally required to list the employer’s name in T&T, but including it is preferred when possible.

Small Expenses

Common corporate practice:

• Under TTD 50–100: Receipt recommended but may not be strictly mandatory
• Above this range, receipts are strongly expected

5. Common Reimbursable Expenses

With appropriate documentation and approval, the following are generally reimbursable:

• Business travel (air, taxi, public transport)
• Mileage for business kilometres
• Parking and tolls
• Accommodation
• Meals tied to business travel (not entertainment)
• Office supplies purchased for business purposes
• Training or professional development expenses related to work

6. Per Diems (Daily Allowances)

Trinidad & Tobago does not publish government‑defined per diem rates for private‑sector employers.

Tax Treatment

Per diems are generally taxable, unless:

• They are strictly for business‑travel meals and incidental costs
• The amount is reasonable
• Supporting travel documentation exists (e.g., itinerary, tickets)

Typical Company‑Defined Guidance (2025 – Non‑Statutory)

• Domestic travel meals: TTD 150–300 per day
• International travel meals: Typically USD 40–80 per day, depending on destination

Per diems must not be combined with meal receipts for the same day.

7. Entertainment, Gifts & Hospitality

Client Entertainment

• Reimbursable with full receipts
• Must clearly state:
  • Names of attendees
  • Business purpose

Gifts

• Reasonable business gifts may be reimbursed
• High‑value or personal gifts may be treated as taxable employee benefits

8. Wellness & Personal Expenses

The following are not required by law and are usually taxable benefits if reimbursed:

• Medical bills
• Gym memberships
• Yoga or fitness classes
• Therapy or wellness services
• Swimming or recreational activities

Exceptions may apply if provided under a company‑wide wellness program, subject to tax treatment.

9. VAT in Trinidad & Tobago

• Standard VAT rate: 12.5%
• VAT applies to many goods and services and should be shown on receipts where applicable
• VAT treatment follows normal T&T tax rules

10. Submission, Controls & Compliance

To remain compliant:

• All travel must be pre‑approved
• Business purpose must be clearly documented for every expense
• Cash advances must be reconciled within 5–10 days of return
• Expenses must be submitted within 30 days
• Personal expenses are strictly non‑reimbursable
• Misclassified reimbursements may be taxed as income under T&T tax rules