Your Pension Is Now Tax‑Free — Here Is What You Need to Know
Under the Finance Act 2026 (Act No. 16 of 2026), qualifying pension income for eligible Trinidad and Tobago tax residents is now exempt from Income Tax, effective 1 January 2026. We have already applied this change to eligible pension payments.
Who qualifies?
The exemption covers monthly pension income paid from:
- Approved pension fund plans
- Approved individual deferred annuity plans
Who may not qualify?
The exemption does not cover:
- Corporate‑approved deferred annuities (company‑owned plans under Section 134(6)
- Individual deferred annuity plans maturing outside ages 50–70
- Pensioners who are not tax residents of T&T (i.e., present in T&T for 181 days or fewer in 2026)
If you are unsure, — we will confirm your eligibility.
Did you have tax deducted from your pension between January and June 2026? We cannot refund those deductions directly — they were remitted to the BIR. But you can claim them back:
- We will issue your 2026 TD4 certificate by the end of March 2027
- Use your TD4 to file a 2026 Income Tax Return with the BIR to claim your refund
- Keep your 2026 pension statements as supporting documentation
If you surrender your pension plan before its retirement or maturity date, the amount received remains subject to income tax.
Questions about your eligibility or pension payments? We are here to help. Call us at 612‑4010 or 612‑3060, or contact your relationship manager directly. You can also email us at caribbeanpensions@palig.com.