Emerging Markets Rates and Currencies Handbook

Financial Obligations act covers. License Requirements Any Financial Institution looking to trade onshore has to be licensed by the Central Bank. Transactions involving the buying, selling, borrowing, or lending of foreign currency can only be conducted through licensed authorized dealers. Requirements to open a foreign currency account It is permissible to open a foreign currency account. Deal Management Rollover: Spot and Forward rollovers are not allowed. To rollover a Forward, the transaction has to be settled and maturing and the client has to rebook a new forward. Unwinding: To unwind a trade, the client has to break the existing contract and trade on the other side of the trade. Early Maturity: Early maturity is possible through unwinding the trade. Documentation Requirements There are no exchange control restrictions around transacting FX. The Central Bank has supplied around 30% of USD to be market over the past few years, and effectively determines the TTD/USD rate. Banks are required to provide details of each transaction to the Central Bank, including advance notification on “large” trades. Trade Flows No local law documentation requirements. Capital Flow and FDI The Central Bank is not overly supportive of capital flows leaving the country but as such there are no restrictions on capital flows in and out. FDI also has no restrictions. Intra-company loan hedging is also allowed. Citibank Trinidad & Tobago Limited 12 Queen’s Park East Port of Spain, Trinidad and Tobago FX Sales Contact: +1868 625 4968 Tax Summary – Trinidad and Tobago Trinidad and Tobago Country Tax Deductibility and Considerations Inter-Co Debt Offshore Bank Loans Offshore Local Borrowing Derivatives Equities W/H Tax • 15% WHT • Under certain tax treaties typically 10-15% • No WHT • No WHT for regular hedge; 15% if hedging a loan • Rate may vary based on jurisdiction and DTA enforced • 0% - 10%WHT tax on dividends depending on Tax Treaties and whether paid to Parent or Individuals Deductibility of interests • Fully deductible • N/A Deductibility of (FX) Losses • Deductible on realized losses only Other Taxes/Duties • N/A • N/A • N/A • N/A • N/A Comments • N/A • N/A • N/A • N/A • N/A Note: Citigroup Inc. and any of its affiliates do not provide accounting, tax, or legal advice. Please seek advice from a relevant licensed advisor. Source: Relevant legislation, publicly available sources