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Doing Business In Fiji

Taxation and stamp duty

Corporate tax

Effective 1 January 2009 corporate tax for resident and non-resident companies is 29% with a further reduction to 28% from 1 January 2010.

Personal tax

Effective 1 January 2009 the top marginal personal tax rate is 31%, taking effect at assessable income levels above F$20,000.

Dividends

Effective 1 January 2009 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 20% depending on the nature of the payment and the jurisdiction to which payment is being remitted (because of double tax arrangements).

Branch profit remittance additional normal tax 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).

Value Added Tax (VAT)

VAT is charged on supplies of goods and services at the rate of 12.5%. 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 12.5%.

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.

Stamp Duty

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
  •       Australia   
  •       New Zealand  
  •       Japan   
  •       South Korea   
  •       Malaysia   
  •       Papua New Guinea
  •       Singapore