Fiji Budget – 2021/2022

The nation has been well awaiting for the 2021/2022 National budget to be announced by The Attorney General and Minister for Economy, Civil Service and Communications, Honorable Aiyaz Sayed Khaiyum as our economy and the people seemed to be on their knees led by the drastic impacts of COVID-19. From individuals to businesses, everyone had been expecting immense support from the government since the closure of borders and halt of Tourism Industry has brought everyone to think about their daily lives in a much different perspective as they have ever thought before. The 2021/2022 National Budget has to be the best budget announced so far with the huge support provided not only for different business sectors but at individual level as well. The policies announced by the Government will definitely ensure that the cost of doing business is greatly reduced and also the cost of living is subsidized to the level best as possible. The 2021/2022 budget has come as a biggest support ever for the nation as a whole.














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Issue 6

Warehouse Business Investment Package

March 1, 2021

  • Under the Warehouse construction incentive packages, there are two categories of incentives:
  • Warehouse Business Incentive Package (WBIP) – provides incentive to companies engaged in the business of hiring out or renting out a warehouse.
  • Warehouse Construction Incentive Package (WCIP) – incentive to companies constructing warehouse.
  •  Warehouse Business Investment Package applies to a project with capital investment over $250,000, where the project commences on or after 1st August 2019 and the warehouse is completed within 24 months from the date the provisional approval is granted.
  •  Capital investment includes the cost of support infrastructure and consultant fees but excludes the cost of land.
  •  It is important that businesses know about this incentive so that they can utilise the opportunities of growth provided to them by the Fijian Government.
  • Warehouse Investment Package
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Doing Business in Fiji

Number of Islands in Fiji 332 Population 930,000 Skilled labour force 370,000 Year Leases 99

Doing Business in Fiji is a comprehensive guide and a helpful first step in your journey. It has been prepared for the clients and partners of our international affiliate network, HLB International.

Fiji is an independent republic situated in the South Pacific approximately 3,100km NE. of Sydney, Australia and 2,100km N. of Auckland, New Zealand. Fiji consists of 332 islands.

The capital of the country is Suva, situated on the South Eastern coast of Viti Levu. The main international airport is at Nadi in the west.

The business climate in Fiji is a pleasant mix of tropical island flavour and serious business intent. Fiji offers a lot of opportunity to investors who wish to take advantage of the availability of an educated labour force, well developed infrastructure with modern communications, good international transportation, a wide range of tax concessions, preferential access to overseas markets, a developed banking service and, when you are not working, a very pleasant climate, beautiful beaches and scenic location. Good quality housing, schools and facilities are available and are on a par with most countries.

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Tax Times Issue 25/2020

Corporate Reorganisation

October 8, 2020

This issue highlights the measures that were taken in the 2020/2021 National Budget on Corporate Reorganization.

Reorganization has become an increasingly relevant topic in Fiji leading to the question of how entities involved in reorganization transactions, as well as their shareholders, should be taxed for the transfer of assets amongst the transferor individual and company with the transferee and transferee companies.

As per the National Budget, deferral rules for corporate reorganisation has been introduced, whereby the transfer of assets by a shareholder to a company will not be subject to tax.

The deferral rules for individual/company reorganization are met when the following conditions are met:

  • a resident individual/company (transferor) disposes of an asset to a resident company; and
  • the transferee resident company is wholly owned by the resident individual or company.

Considerations

  • The consideration for transfer should be at the cost of the asset. However, if the consideration exceeds the costs, normal income tax rules would apply in such cases.
  • The Shareholder structure of the company should not change within two years. If there is a change in shareholding of the transferee company within two years from the date of disposal, any taxes applicable at the time of disposal shall immediately become payable.

 

Corporate Re-Organisation – Issue 25

Should you require our service on the above, then please contact us on [email protected] or [email protected] and we will attend to your request.

This is general information and not a substitute for full professional advice. Should you have any questions in relation to this newsletter please do not hesitate to contact, Sanjay Ram or Atnesh Prasad. Email: [email protected]; or [email protected]

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Tax Times Issue 10/2020

COVID-19 Response Budget highlights

April 8, 2020

This issue highlights the following measures stated in the Budget to assist businesses affected by COVID -19.

Certificate Of Exemption

  • All persons engaged in contract for services are advised that the Certificate of Exemption (COE) for 5% Provisional Tax under Income Tax (Collection of Provisional Tax) 2016, will now be issued from 1st April, 2020.
  • All taxpayers issued with a Certificate of Exemption are eligible to receive any money due under any contract of service without  any deduction for provisional tax. Certificate of Exemption will be issued upon application with FRCS.
  • FRCS will require taxpayers to be compliant with all tax and customs obligations including filing and payments obligations. For taxpayers who are impacted by COVID- 19 and are not able to meet the above requirements, can make arrangements with the Debt Management Services.

 

Should you require our service on the above, then please contact us on [email protected] or [email protected] and we will attend to your request.

This is general information and not a substitute for full professional advice. Should you have any questions in relation to this newsletter please do not hesitate to contact, Sanjay Ram or Atnesh Prasad. Email: [email protected]; or [email protected]

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Tax Times Issue 6/2020

Payday and monthly summaries

February 15, 2020

This issue highlights on the matters relating to the validations and lodgement of Payday and Employee Monthly Summaries (EMS).

Pay Day filing

  • Pay Day filing is a new requirement which will be filed in Tax Portal Online Service (TPOS) based on the pay frequency of the pay cycles either monthly, fortnightly, bi-monthly or weekly.
  • Employers will be required to upload the Pay Day files in TPOS as soon as their employees have been paid out.
  • The specifications and format of Pay Day files are entirely different compared to the Employer Monthly Summary and the file formats and structures have been provided to Payroll Vendors.

Employers

  • The PAYE system in the Taxpayer Online System (TPOS) is still being rolled out. Therefore, employers do not need to update their current Payroll Software for the new changes relating to Payday and EMS reporting.
  • FRCS will inform the taxpayers in advance on the roll out dates which is expected to be around mid-2020.
  • In the meantime, employers should continue to lodge the EMS under the existing process (i.e. sending note pad EMS files (flat files) to PAYE Validators ([email protected]). This process of lodgement will continue until the TPOS PAYE module is launched.

Payroll Vendors

  • FRCS will organize TINS and test environment, where Vendors can upload and have their respective files validated.
  • Testing schedules will be forwarded to Vendors who have already requested for the validations. Upon successful validations of files (for those whose software have already been tested), Accreditation Certificates will be issued by FRCS.

 

Should you require our service on the above, then please contact us on [email protected] or [email protected] and we will attend to your request.

This is general information and not a substitute for full professional advice. Should you have any questions in relation to this newsletter please do not hesitate to contact, Sanjay Ram or Atnesh Prasad. Email: [email protected]; or [email protected]

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Digital registration reminder

Registration of business names, companies and foreign companies

February 8, 2020

This issue sets as a reminder to our clients who have not re-registered with the Registrar of Companies Office.

We emphasise that all business name holders, companies and foreign companies registered with the Registrar of Companies office prior to 14th June 2019, must re-register themselves digitally.

Timeframe for registration

  • All companies including foreign companies must be re-registered by 15th July 2020
  • All Business names must be re-registered by 15th October 2020

Business Names – Additional obligation

  • In the past, business names were only required to be registered once.
  • However, now business names will have expiry dates and will need to be renewed.
  • Business names registered after 14th June 2019, are deemed to be registered for 1 year.

Fees

  • This one time digital registration is free of charge.
  • However, once re-registered, annual renewal fees will apply at discretion of Registrar of Companies office.
  • Clients can opt to do the digital registration themselves by visiting Digital Fiji website – https://www.digital.gov.fj

Non-Compliance

  • Companies that fail to re-register within the given timeframe will be deemed automatically “de-registered” with their assets and liabilities becoming the property of the Registrar of Companies.
  • Once “de-registered” company representatives will need to contact Registrar of Companies office for a solution.
  • If a business name is not re-registered then any person continuing to trade under the name may be in breach of section 43 of the Companies Act.
  • Provisions are in place for deregistered companies and businesses to re-register however the initial deregistration will have legal/financial implications on clients banking facilities with their respective banks.
  • Companies and business name holders need to re-register and forward updated certification to their respective banks prior to the deadlines in place.

Our Services

  • Our firm can assist you with the re-registration phase at an agreed fee which we can discuss on.

 

 

Should you require our service on the above, then please contact us on [email protected] or [email protected] and we will attend to your request.

This is general information and not a substitute for full professional advice. Should you have any questions in relation to this newsletter please do not hesitate to contact, Sanjay Ram or Sonia Singh. Email: [email protected]; or [email protected] 

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