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| The Venture Capital Incentive Programme (VCIP) is the operating name of the investment incentive program established by the government of Trinidad & Tobago as set out in the Venture Capital Act 1994. The VCIP commenced operations in October 1996. This program was introduced to promote the formation of Venture Capital Companies (VCC’s) to make arm's length equity investments. There is provision for tax credits to be granted to investors of VCC’s. The prime objective is to increase the supply of risk capital to the entrepreneurial business sector, thus fostering the expansion and preservation of businesses as well as creating employment opportunities.
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“To facilitate business activity through venture capital financing by fostering an environment of innovation, risk taking and entrepreneurship and through the provision of quality service to our stakeholders, and to be the leading Caribbean resource in the field of venture capital.”
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The VCIP is a unique opportunity for Government and business to work together to provide the business sector with access to capital and management expertise, while leaving the control of investment decisions in private sector hands. The debt to equity ratio of many businesses in Trinidad and Tobago and the Caribbean Region is such that sustainable growth and development is often very difficult. Businesses that are heavily dependant on short term financing are vulnerable to changing market conditions which require financial strength and staying power. Improved access to equity capital will enable companies at infancy and growth stages to be financially stronger, create new jobs and strengthen export earnings.
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The Trinidad and Tobago Government will provide investors in registered Venture Capital Companies with an incentive equal to the highest marginal tax rate for individuals and companies in effect. The Venture Capital Company must subsequently invest in one or more Qualifying Investee Companies (QIC). Where the amount of the tax credit cannot be wholly set-off against the tax accessed for that income year, the amount of the unclaimed tax credit may be carried forward and set off against tax accessed for succeeding years of income until fully utilised.
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The Programme 
