Value-added tax (VAT)
VAT of 15% or 9%, depending on the goods or services being supplied, generally applies on the supply of goods and services in Fiji by a registered person in the course or furtherance of a taxable activity carried on by that person. The threshold amount for VAT registration is FJD 100,000 for the supply of goods and/or services.
The supply of financial services (except for certain insurance services), residential accommodation, and education by an approved institution is exempt.
Exports of goods and services and international transportation are zero-rated under certain conditions.
The due date for lodgement of VAT returns and payment of any VAT payable is the end of the month following the taxable period, which is normally a month. However, where an entity’s supplies do not exceed FJD 300,000, it may opt to lodge VAT returns and pay any VAT payable on an annual basis.
Under certain conditions, directors of companies with insufficient funds may be held liable for any outstanding VAT or CIT liability of the company and may be sued in their personal capacity.
Customs duties/import excise taxes
Import excise tax (from 5% to 15%) applies to selected goods (in addition to the fiscal duties imposed on importation).
Excise tax is payable on tobacco, alcohol products, and carbonated soft drinks manufactured in Fiji, based on quantities produced.
There are no property taxes at the national level. However, the municipalities may charge property rates in their respective areas.
Under the Fiji Stamp Duties Act, stamp duty is payable in respect of instruments, including, but not limited to, declaration of trusts, leases, loans, mortgages, transfer of property (or interest therein), and shares.
Effective from 1 August 2020, the Stamp Duty Act was repealed; however, any instrument that was executed or took effect before 1 August 2020 remains subject to stamp duty.
Capital gains tax (CGT)
Capital gains made from the following assets (excluding trading stock or business intangibles) may be subject to CGT of 10%:
- Land or an interest therein.
- Ships or boats.
- Shares, securities, equities, or other financial assets (except shares listed on the SPSE). However, effective from 19 August 2021, any capital gains made by a person on the disposal of shares will be exempt from CGT if the shares were held by the person from before 1 May 2011 (i.e. before the introduction of CGT in Fiji). This exemption applies to all taxpayers until 31 December 2022, and the exemption only applies to Fiji resident persons and Fiji citizens after 31 December 2022.
- Intangible assets.
- Interest in a partnership or trust.
- Option, right, or other interest in an asset referred to above.
A capital gain made on disposal of an asset that is used solely to derive income that is exempt from tax under the FITA shall be exempt from CGT. However, the disposal of shares is not exempt from CGT (except shares listed on the SPSE as noted above).
Foreign tax paid in respect of the disposal of a capital asset may be allowed as a tax credit against the CGT payable.
There is no carry forward of capital losses in calculating CGT.
Any gain on the disposal of shares listed on the SPSE shall be exempt from CGT, including, with effect from 19 August 2021, any capital gains on the disposal of shares if the shares were held by the person from before 1 May 2011.
Any gain on the disposal of shares in any Unit Trust in Fiji shall be exempt from CGT, subject to certain conditions.
Any gain on the disposal of capital assets (including shares) by a Fiji resident shall be exempt from CGT and CIT where a private company goes through reorganisation, restructure, or amalgamation for the purpose of listing on the SPSE, subject to certain conditions.
Transfer of capital assets due to reorganisation shall not be subject to CGT, subject to certain conditions.
Service turnover tax (STT) and environment and climate adaptation levy (ECAL)
The following amendments to the ECAL Act are effective from 1 April 2022:
- The 5% ECAL previously applicable on prescribed services, white goods and passenger motor vehicles, superyacht charter, and plastics has been removed.
- The 50 cents ECAL on plastic bags has been renamed as plastic bag levy.
- The 5% ECAL on superyacht charters has been renamed as superyacht charter fee.
Effective from 1 August 2020, the Service Turnover Tax Act was repealed; however, any transaction entered into and paid before 1 August 2020 remains subject to STT at the rate of 6%.
STT at the rate of 6% was imposed on the turnover of a person conducting a business involving the provision of a prescribed service where the annual gross turnover exceeded FJD 1.25 million, which included the following:
- Provision of accommodation, refreshments, and any other services by a hotel.
- Any services provided in a vessel that is principally or wholly engaged in the carriage of tourists in Fiji.
- Provision of meals, beverages, and any other services in a bar.
- Provision of services in a nightclub.
- Provision of in-bound tour services.
- Live entertainment provided by artists for a fee.
- Provision of services for recreational activity for gain.
- Provision of services relating to exhibition of films to the public or section thereof by an exhibitor where a charge is made for admission, including services provided by cinema operators.
- Provision of services by hired or rental car operators and chartered transport services to tourists by omnibus or mini-bus operators.
- Provision of meals, beverages, and any other services by bistros or coffee shops.
- Provision of meals, beverages, and any other services on sale by restaurants.
- Provision of charter flight services by an aircraft or helicopter, excluding such services for medical or natural disaster relief evacuation.
- Provision of all water sports, including underwater activities and river safaris.
- Provision of accommodation in a private residence or property that accommodates tourists, international students, or overseas visitors who are paying guests.
The above-prescribed services were also subject to ECAL at the rate of 5% with effect from 1 August 2020 (previously 10%) on annual gross turnover exceeding FJD 1.25 million (previously FJD 3 million). However, non-consumption services by hotel properties are no longer subject to STT (or ECAL).
STT and ECAL were only imposed once for the same service.
The following were also subject to ECAL:
- Prescribed plastic bags at 20 cents per bag (50 cents effective from 1 January 2020).
- Importation of certain prescribed goods.
- Charter of superyachts.
ECAL refund was allowed for persons who imported goods for the purposes of re-export based on specific conditions.
The due date for payment of STT and ECAL was aligned with the VAT Act requirements (i.e. end of the month following the taxable period).
Water Resource Tax (WRT)
The WRT, at the following rates, shall be levied upon the extraction of water in its natural state for sale:
|Litres extracted monthly||Cents per litre|
|0 to 9,999,999||1.00|
|10,000,000 and above||18.00|
Fringe benefits tax (FBT)
FBT of 20% is payable by the employer on the grossed-up value of certain fringe benefits provided to employees (the effective tax rate is 25%).
Employers are required to deduct and remit monthly to the tax authority appropriate Pay-As-You-Earn (PAYE) tax, social responsibility tax (SRT), and ECAL from employee gross cash emoluments.
If appropriate PAYE taxes, SRT, and ECAL are not deducted and remitted, the tax authority may recover the taxes from the employer or the employee and/or disallow a tax deduction for the expenditure.
Please note that ECAL has been removed effective 1 April 2022.
Contributions to the Fiji National Provident Fund (FNPF)
The FNPF is a compulsory superannuation scheme for local employees. Under the FNPF Act, employers and employees are required to contribute 10% and 8%, respectively, of cash emoluments of employees to the Fund.
Effective 1 April 2020 to 31 December 2021, the compulsory FNPF employer and employee contributions have been reduced to 5%, respectively, as part of the government’s COVID-19 response budget.
The compulsory FNPF employer and employee contributions for 2022 are 6%, respectively. The compulsory FNPF employer and employee contributions for 2023 are 7%, respectively.
Employers are not required to contribute to the FNPF for expatriate employees. However, if expatriates and their employers wish to contribute to the FNPF, they may elect to do so subject to certain conditions.
Telecommunication levy of 1% is imposed on all voice call charges.
Gambling turnover tax (GTT)
GTT is imposed on the value of consideration paid or payable in respect of the provision of prescribed gambling services (i.e. acceptance of bets and provision of tickets for any lottery) at the rate of 15%.