Taxation and stamp duty
Corporate tax for resident and non-resident companies for the 2011 income tax year is 28%.
The top marginal personal tax rate is 31%, taking effect at assessable income levels above F$22,000 for residents and F$20,000 for non-residents.
In addition, Social Responsibility Levy (SRL) was introduced on 1 Jan 2012. This applies:
(a) on resident individuals earning in excess of F$270,000 applying from their first dollar of income at rates from 23% increasing to 29%
(b) on non-residents from the first dollar of income at rates from 19% to 29%.
Effective 1 January 2001 dividends paid out of fully taxed corporate income are treated as fully exempt. Different rates apply where relevant corporate income was not fully taxed (for example, as a result of tax incentives or concessions).
Withholding tax on dividends, interest, royalties and management fees paid to non-residents
This applies at rates varying between 10 and 15% depending on the nature of the payment and the jurisdiction to which payment is being remitted (because of double tax arrangements). Imputation credits (or dividend franking) is available to non-residents to offset these taxes to the extent that dividends are derived from post-2001 profits. Branch profit remittance additional normal tax was repealed effective 1 January 2010 - it applied at the rate of 15% on remittances of branch profits where those profits were not fully tax-paid in Fiji (for example, as a result of tax incentives or concessions) for the years 2008-9.
Branch profit remittance additional normal tax was repealed effective 1 January 2010 - it applies at the rate of 15% on remittances of branch profits where those profits are not fully tax-paid in Fiji (for example, as a result of tax incentives or concessions) for the years 2008-9.
Capital Gains Tax (CGT)
CGT of 10% applies with effect from 1 May 2011. CGT is payable on gains made on the disposal of capital assets (including land and buildings, plant and equipment, vehicles, aircraft and ships and including options) by residents and non-residents. A credit is allowed for foreign tax paid on the disposal of those assets.
Value Added Tax (VAT)
VAT is charged on supplies of goods and services at the rate of 15% (increased from 12.5% with effect from 1 January 2011). Certain supplies are exempt. Other supplies, including those in the nature of exports, are zero-rated. Fiji's Value Added Tax Decree 1991 is similar, but not identical, to New Zealand's Goods and Services (GST) legislation. VAT is payable on imports at the rate of 15%.
Customs and excise duties
Most imported and some domestically manufactured goods are subject to these duties. Charged goods fall into one of five duty bands ranging between 3% and 32%. Further simplification of the system is an avowed Government aim.
This is charged on a range of written instruments mainly transfers and leases of land, finance and security documents. Transfer duty is charged at the rate of 2% on real property transactions (land, assets) and 1% on documents (share transfers, mortgages and security instruments) involving securities.
Double Tax Agreements
Fiji has entered into Double Tax Agreements with the following states:
- United Kingdom
- New Zealand
- South Korea
- Papua New Guinea