Value-added tax (VAT)
VAT of 9% 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), including:
- Alcohol and tobacco.
- Used or second-hand liquefied petroleum gas (LPG) powered motor vehicles.
- New or used licensed mini buses.
- Some goods that are also locally manufactured.
- Certain white goods and luxury items.
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Effective from 1 August 2020, the Stamp Duty Act will be repealed however any document which is executed or takes effect before 1 August 2020 remains subject to stamp duty.
Capital gains tax (CGT)
Capital gains made from the following assets (excluding trading stock, depreciable assets (subject to certain conditions effective 1 August 2020), 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).
- 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 carryforward of capital losses in calculating CGT.
Any gain on the disposal of shares listed on the SPSE shall be exempt from CGT.
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 shares due to corporate reorganisation shall not be subject to CGT, subject to certain conditions. Effective from 1 August 2020, this has been amended to include reorganisation by a resident individual subject to certain conditions.
Service turnover tax (STT) and environment and climate adaptation levy (ECAL)
Effective from 1 August 2020, the Service Turnover Tax Act will be 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% is imposed on the turnover of a person conducting a business involving the provision of a prescribed service where the annual gross turnover exceeds FJD 1.25 million, which includes 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 are also subject to ECAL at the rate of 10%. However, non-consumption services by hotel properties are no longer subject to STT (or ECAL).
STT and ECAL shall only be imposed once for the same service.
The following amendments to the ECAL Act are effective from 1 August 2020:
- ECAL is reduced from 10% to 5% on prescribed services, income, imported white goods and imported vehicles;
- The annual gross turnover threshold for ECAL exemption has been increased from FJ$1.25 million to FJ$3 million; and
- ECAL refund is allowed for persons who import goods for the purposes of re-export based on specific conditions.
The following shall also be subject to ECAL:
- Prescribed plastic bags at 20 cents per bag (50 cents effective from 1 January 2020).
- Import of new or used vehicles with engine capacity exceeding 3000cc, hybrid vehicles, and certain electrical goods, subject to certain exemptions.
- Charter of superyachts.
The due date for payment of STT and ECAL is 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.
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, the compulsory FNPF employer and employee contributions have been reduced to 5% respectively as part of the government’s COVID-19 response budget. This has been extended until 31 December 2021.
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%.