Fiji

Individual - Deductions

Last reviewed - 23 December 2020

Employment expenses

No deductions shall be allowed in reducing employment income.

However, as part of the COVID-19 response and effective from 1 April 2020, if a person has a net business loss, the person’s employment income is reduced by the net business loss in computing the chargeable income, provided that the amount reduced does not exceed FJD 20,000.

Personal deductions

Deductions for non-business expenses are minimal and are unlikely to be available to a foreign employee.

Effective from 1 August 2020, subject to certain conditions, a tax deduction will be allowed on loans (inclusive of both principal amount and interest accrued) taken from a licensed financial institution for medical treatment.

Charitable contributions

The deduction threshold for contributions to approved academic and charitable organisations is FJD 100,000.

There are certain other specific donations that qualify for varying levels of deductions, including:

  • Donations to the Fiji Heritage Foundation, which qualify for a deduction of 150%.
  • Cash donations exceeding FJD 50,000 to the Poverty Relief Fund for Education, which qualify for a deduction of 200%.
  • Cash donations exceeding FJD 50,000 (FJD 15,000 effective 1 January 2020) to a Sports Fund (as approved by the CEO of the Fiji Revenue and Customs Service [FRCS]) for purposes of sports development in Fiji, which qualify for a deduction of 150%.
  • Total cost of new computers, laptops, and tablets of not less than FJD 10,000 but not exceeding FJD 100,000 donated to urban and rural schools registered with the Ministry of Education, which qualify for a deduction of 150% and 200%, respectively.
  • Cash donations of not less than FJD 10,000 but not exceeding FJD 100,000 to the Disaster Rehabilitation Fund, which qualify for a deduction of 150%.
  • Cash donations not exceeding FJD 50,000 towards any approved housing project for squatters by the Fiji government, which qualify for a deduction of 150%.
  • Cash donations of not less than FJD 10,000 to the Farmers Disaster Relief Emergency Fund Account, which qualify for a deduction of 200%.
  • Effective 1 April 2020, a person is also allowed a deduction for 300% of the amount of a cash donation made in a tax year to a fund established by the government to respond to the COVID-19 pandemic.
  • Effective 1 August 2020, a 100% tax deduction will be available for cash donation made to a sporting entity recognised by the Fiji National Sports Commission (previously only available for cash donations up to $15,000 made to an "approved sports funds").
  • Effective 20 August 2020, a 150% tax deduction will be available for any cash donation made to a fund established by the Fiji government for the 50th independence day celebrations.

No deductions for charitable contributions shall be allowed against employment income.

Personal allowances

Personal allowances are no longer available.

Business deductions

In calculating taxable income, deductions may be allowed for revenue expenditure wholly and exclusively incurred for the purposes of deriving that income. Deductions are generally not available for capital expenditure, personal or living expenses, or for income taxes paid.

As part of the COVID-19 response and effective from 1 April 2020, if a person has a net business loss, the person’s employment income is reduced by the net business loss in computing the chargeable income, provided that the amount reduced does not exceed FJD 20,000.

Furthermore, a landlord that reduces the commercial rent payable under a tenancy agreement is allowed a deduction for the aggregate sum of the difference between the rent payable on 26 March 2020 and the rent payable in the period commencing on and from 27 March 2020 to 31 December 2020, subject to certain conditions.