As a developing country, Fiji has implemented a wide variety of tax incentives which can be utilised to better suit you or your business.
For a tailor made tax solution, our tax team are more than happy to further discuss Fiji’s direct tax incentives in detail with you and work out a strategy on how best these incentives can be utilised to suit you and or your business needs.
How we can help
There are a number of direct taxes in Fiji that businesses and individuals need to know. Some of these include:
1. Income Tax
Personal Income tax in Fiji is a direct tax imposed on individuals or taxpayers in respect of the taxable income or profits earned by them. Income tax in Fiji is computed at rates increasing in income bands. The tax rate increases as taxable income increases on a graduated scale.
Different scales apply to resident taxpayers and non-residents.
In addition to personal tax, FRCS imposes SRT and ECAL on incomes over a certain threshold.
2. Capital Gains Tax
Capital Gains Tax (CGT) is a tax that is levied on profits or gains realized on the disposal of capital assets. It came into effect from May 1, 2011 replacing the Land Sales Tax. Capital Gains Tax is imposed and collected on a self-assessment basis and the vendor is liable for the tax. It is computed on the VAT Exclusive Price (VEP) of the capital asset.
If you are thinking of selling a Capital Asset, or currently have some Capital Assets to transfer, contact us now and together we can discuss further in detail the technical implications of CGT and the current incentives that is in place that you can take advantage of.
3. Fringe Benefit Tax
Introduced by FRCS on January 1 2012, with the intention of helping Fijians financially, Fringe Benefit Tax (FBT) now shifts the tax burden from employees to the employers. This tax is levied when an employer provides in kind or non-cash benefits to an employee.
4. Social Responsibility Tax
Social Responsibility Tax (SRT) is designed as a special contribution to the welfare of the underprivileged in Fiji. It applies to resident and non-resident individuals who have a total chargeable income exceeding $270,000 during the income tax year.
5. Environment & Climate Adaptation Levy (ECAL)
The Environment & Climate Adaptation Levy (ECAL) is a new tax introduced in alignment to Fijis recognition of the importance of safeguarding the environment and the impact the economy has had on Climate Change. It is charged at the rate of 5% on the gross annual turnover of a prescribed service.