Republic Corporate Tax Incentive Savings Plan

CTISP

About the Republic 134(6) Corporate Tax Incentive Savings Plan

Republic’s Trust Services Division and Republic Wealth Management Ltd. (established July 1, 2014 and formerly the asset management arm of the Trust and Asset Management Division [established 1938] of Republic Bank) combine their expertise to provide our two (2) corporate retirement savings plans which grants benefits to both employers and employees.

The Republic 134 (6) Corporate Tax Incentive Savings Plans are designed under the provisions of the Income Tax Act of Trinidad & Tobago section 134(6). These provisions allow an employee’s earnings categorised as bonus and allowance income to be paid tax-free directly by the employer into a plan to generate retirement benefits for the employee.

  • Republic 134(6) Corporate Tax Incentive Savings Plan (CTISP)
    Employers can contribute directly to this approved plan on behalf of their employees. The sum of contributions made to both corporate and personal plans must not exceed the higher of 33 1/3% of the employee’s chargeable income or 20% of the employee’s emolument income. All contributions made by the employer are fully tax deductible.

  • Republic 134(6) Corporate Equity Tax Incentive Savings Plan (CETISP)
    Although it shares similar features with CTISP, the Republic 134(6) CETISP further enhances potential investment returns through a portfolio of primarily equity securities. The investment managers at Republic Wealth Management Ltd. (established July 1, 2014 and formerly the asset management arm of the Trust and Asset Management Division [established 1938] of Republic Bank) manage this portfolio, taking into consideration prevailing economic and capital market conditions, seeking at all times to optimise returns consistent with the risk profile of the plan.

To achieve long-term growth, primarily through income and capital appreciation to provide investors with returns that will assist them in meeting their retirement goals.

Republic Wealth Management Ltd. (established July 1, 2014 and formerly the asset management arm of the Trust and Asset Management Division [established 1938] of Republic Bank) manages the CTISP and CETISP portfolios. We were the first bank to offer this type of retirement investment product in Trinidad and Tobago.

Republic Wealth Management Ltd. has a knowledgeable investment team with over fifty years in investment management experience and manages billions in assets on behalf of individuals and institutional clients.

We make setting up Republic 134(6) Corporate TISP for your executives and employees an easy and affordable goal. We know that many employers do not like the hassle and paperwork associated with traditional pension plans.

With the Republic 134(6) Corporate TISP all you do is:
  • Make the decision to set up the plan
  • Issue monthly cheques to cover the contributions
  • Ensure that contributions made remain within the annual limit
We at the Trust Services Division will complete the rest:
  • Open and maintain all accounts
  • Obtain approval from BIR for initial certificates
  • Provide annual statements
  • Complete all documentation (at your office or ours)
  • Make all investment decisions
  • Provide you with periodic performance updates on your investment

ALL THIS IS ABSOLUTELY FREE TO YOU!

Republic 134(6) Corporate Tax Incentive Savings Plan

  • Rate declared annually
  • Interest rate net of all charges
  • Interest is paid retroactively, based on the minimum monthly balance of the account for the previous year
Republic 134(6) Corporate Equity Tax Incentive Savings Plan

The price per unit of the fund is calculated daily, based on the net asset value of all securities in the portfolio. Income is reinvested in the fund, so that gains are reflected as an increase in the net asset value of the units held.

Benefits to both Employers and Employees
Employers Employees
  • No administrative burden

  • Low cost plans; all administrative costs are absorbed by the plans

  • All contributions are fully tax deductible

Employees receive the benefit of having tax-free contributions made to their pension plan. 

  • Tax free interest upon maturity
    Upon maturity of the plan, employees have the option to receive 100% interest on income/earnings plus 25% of total contributions TAX FREE. The remaining 75% is used to purchase an annuity that provides employees with income for life. Alternatively, the plan holder may direct the entire plan value, or some amount between the two extremes, towards the purchase of the annuity.

  • Transfer between Republic plans
    Employees' appetite for risk may change as they approach retirement. They can manage the risk in their retirement portfolio by managing exposure to the Republic CTISP and the Republic CETISP through transfers between the plans.

  • Flexible maturity date
    Employees can choose any maturity date between the ages of 50 years and 70 years, depending on when they most need their retirement income.

  • Select an annuity provider of THEIR choice
    Upon maturity, employees can select an annuity provider with whom they feel most comfortable. To make this selection process more convenient, we obtain quotes from various providers for you.

  • Plan their estate
    Employees can appoint a beneficiary at any time throughout the life of the plan. If they die before the maturity date, the full value of the plan less any taxes due under the law will be paid to their nominated beneficiary.
How to Apply?

Simply contact any one of our Marketing Officers who will provide additional information and help you open your Republic 134(6) Corporate Tax Incentive Savings Plans and your Republic 134(6) Corporate Equity Tax Incentive Savings Plans.

Contact us

Interested investors can call 1-868-625-4411 extension 3064, 3316 or 3141 or send an email to kmongru@republictt.com

Documentation Needed

Before visiting our branches, ensure you have:
Two (2) forms of Identification (e.g. National Identification Card, Passport or Driver's Licence)
Recent Utility Bill; Authorization Letter if Bill is not in your name
Job Letter
Pay slip
Required Deposit for opening
Proof of Board of Inland Revenue Number


Disclaimer

This investment is not insured with the Deposit Insurance Corporation in Trinidad and Tobago, or is it guaranteed by any of the parties involved. This investment and any income from it may fluctuate and the investor may not receive the amount originally invested. Past performance is not necessarily a guide to future performance. The supply of this service conforms to the provisions of the Code of Banking Practice. Information on current interest rates, fees and charges applicable to this and any other service is available on request at any of our branches.

Go to top