Individual - Income determination

Last reviewed - 14 February 2024

Income tax in Fiji is levied on an individual’s taxable income, calculated as assessable income less any deductions allowed. An individual’s employment income, income from property, business income, and income earned from investments (e.g. rent and royalties, interest, dividends) are included in an individual’s calculation of assessable income. Assessable income includes undefined or unidentified deposits in any bank account.

Employment income

A foreign person residing in Fiji solely or mainly for the purpose of engaging in employment is subject to tax on salary earned in Fiji regardless of where payment is made. Gross income includes wages, salaries, fees and other emoluments, living allowances, housing allowances, tax reimbursements, and other benefits received from any office or employment.

Employment income' has been clarified to include:

  • Work condition supplements (defined as additional amounts paid as compensation for difficult, unpleasant, or dangerous work conditions).
  • Any expenditure incurred by an employee that is reimbursed by the employer (not including expenditure incurred on behalf of the employer in the performance of the employee's duties).

Fringe benefits provided to an employee that are subject to FBT are not included in the employee's taxable income.

Cash allowances and similar allowances or benefits are included as part of taxable income in calculating total tax payable. However, no deductions are allowed against employment income. As indicated above, employment income is subject to a final tax in certain cases.

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.

Capital gains

Any profit or gain accrued or derived from the sale or disposal of real or personal property, or any interest therein, shall be subject to tax when:

  • the business of the company comprises of dealing in such property
  • the property is acquired for the purpose of selling or otherwise disposing thereof, or
  • any profit or gain is derived from the carrying on or carrying out of any undertaking or scheme entered into or devised for the purpose of making a profit.

In such a case, the capital gain may be subject to CGT of 10% (see Capital gains tax [CGT] in the Other taxes section for more information).

Investment income

A full exemption from tax is available on gains derived from the following transactions:

  • Sale of capital assets (including shares) for the purpose of listing in the SPSE, subject to certain conditions.
  • Trading of shares in an SPSE listed company.
  • Effective from 19 August 2021, sales of shares held from before 1 May 2011 (i.e. before the introduction of CGT in Fiji). This has been repealed effective 1 July 2023.

For a foreign person who is resident in Fiji for tax purposes, generally, income from all sources, including interest, dividends, rent, and royalties, is subject to income tax at graduated rates. In spite of the above, income from interest, dividends, or royalties derived outside Fiji by a person resident in Fiji solely or mainly for the purpose of engaging in any employment under a contract of employment of not more than three years duration is not subject to Fiji income tax.

Dividend income

Dividends are no longer subject to tax in the hands of the shareholder.

Interest income

Interest income derived by a resident shall be appropriately subject to resident interest WHT of 10% (previously 20% on interest from a financial institution), which is a final tax if paid by a financial institution. Exempt income shall not be subject to WHT.

A full exemption from tax is available on interest income:

  • received by citizens of other countries recognised by Fiji in the 'Fiji My Second Home' programme, subject to certain conditions, and
  • received by non-residents who hold funds in Fiji commercial bank accounts under the Foreign Currency Account Scheme, subject to certain conditions.

Partnership income

The income of the partners from a partnership for any income year is equal to each partners' respective share of income from that partnership. Each partner declares income separately and is individually liable for filing a tax return for each applicable year.