Understanding the corporate income tax and other relevant taxes is crucial for businesses operating in Fiji. Alongside the corporate income tax, businesses should be aware of VAT, import duties, ECAL, STT, SRL, and other applicable taxes. It is advisable to consult with a tax professional or refer to the official website of the Fiji Revenue and Customs Service (FRCS) for the most accurate and updated information on tax regulations and requirements in Fiji.
Corporate Income Tax:
Fiji operates on a worldwide income tax system, whereby both local and foreign companies are subject to taxation on their worldwide income if they have a permanent establishment in Fiji. The corporate income tax rate in Fiji is progressive, with rates ranging from 20% to 30% based on the company's annual turnover.
Types of Business Taxes in Fiji:
- Corporate Income Tax: The corporate income tax in Fiji is levied on the profits of companies operating within the country. The tax rates are as follows:
- Companies with an annual turnover of FJD 1.25 million or less: 20%
- Companies with an annual turnover between FJD 1.25 million and FJD 2 million: 26%
- Companies with an annual turnover exceeding FJD 2 million: 30%
- Value Added Tax (VAT): VAT is a broad-based consumption tax imposed on the supply of goods and services in Fiji. The standard VAT rate is 9%. Some items, such as basic food items and certain medical supplies, may be exempt or zero-rated.
- Import Duties: Import duties are levied on goods imported into Fiji. The rates vary depending on the nature of the goods and are based on the customs valuation.
- Environmental and Climate Adaptation Levy (ECAL): ECAL is an environmental tax imposed on certain goods and services in Fiji. The levy aims to support climate adaptation initiatives. The ECAL rate is currently set at 10%.
- Service Turnover Tax (STT): STT is a tax applicable to specific services, such as telecommunications, electricity, and broadcasting. The tax rate varies depending on the type of service.
- Social Responsibility Levy (SRL): SRL is a tax imposed on specific industries, including alcohol, tobacco, gambling, and sweetened beverages. The tax rates vary depending on the industry and the product.
- Capital Gains Tax: As of the knowledge cutoff in September 2021, Fiji does not have a specific capital gains tax. However, capital gains may be subject to taxation under other provisions of the Income Tax Act. It is advisable to consult with a tax advisor or the Fiji Revenue and Customs Service (FRCS) for the latest information.
Fijian Tax Authority Website:
For detailed information on business taxes in Fiji, it is recommended to visit the official website of the Fiji Revenue and Customs Service (FRCS). The FRCS website provides up-to-date tax regulations, forms, guidelines, and contact details for any tax-related inquiries.
Fiji Revenue and Customs Service (FRCS) Website: Official FRCS Website