Fiji

Individual - Other tax credits and incentives

Last reviewed - 14 July 2020

Employment incentives

Salary and wages paid to first-time employees for the first 12 months of employment qualifies for a 200% deduction, subject to certain conditions. The definition of qualified employees includes apprentices and trainees. This deduction is available until 31 December 2020. Effective from 1 April 2020, the deduction has been increased to 300% and is available until 31 December 2023.

Salary and wages paid to students qualify for a 200% deduction, subject to certain conditions. This deduction is available until 31 December 2020. Effective from 1 April 2020, the deduction has been increased to 300% and is available until 31 December 2023.

Salary and wages paid to disabled persons qualify for a 300% deduction, subject to certain conditions. This deduction is available until 31 December 2022. Effective from 1 April 2020, the deduction has been increased to 400% and is available until 31 December 2023.

Employees’ education fees qualify for a 150% deduction, subject to certain conditions.

Effective 1 January 2019, the cost incurred by an employer providing employee training qualifies for a 150% deduction if training providers approved by the FRCS conduct the training.

Effective 1 January 2019, salaries and wages paid to employees taking family care leave qualify for a 150% deduction, subject to certain conditions.

Effective 1 January 2019, salaries and wages paid to employees taking paternity leave qualify for a 150% deduction.

Effective 1 April 2020, a person is also allowed a deduction for 300% of the amount of salary or wages paid between 1 April 2020 to 31 December 2020 to an employee affected by COVID-19 and who is required by the Ministry of Health and Medical Services to be quarantined.

Hotel industry incentives

Approved capital expenditure incurred in building, renovating or expanding a new or existing hotel is subject to an investment allowance of 25% of the approved expenditure, in addition to normal depreciation. Previously this was only applicable to new hotels.

The recipients of provisional approval for hotel investment tax incentives are required to complete the hotel projects within two years from the date provisional approval is granted.

Filmmaking and audiovisual incentives

A tax exemption or reduced tax rate is available on the income of non-resident employees of an approved non-resident company engaged or intending to be engaged in making a film in Fiji.

Tax concessions are also available for residents of areas declared as studio city zones by the appropriate government minister.

Effective 1 August 2019, a 200% tax deduction is available on expenses incurred from the importation of filming equipment for film making and audio visual production by a business registered in Fiji.

Effective 1 August 2019, the following concession is available to a person that sets up a post-production facility with capital investment of at least FJD 2 million:

  • Exemption from CIT for a period of seven years.
  • Duty-free entry of certain capital equipment, plant, and machinery, upon receiving provisional approval from the minister.

Other tax incentives

Effective 1 April 2020, the following incentives are available as part of government’s response to the COVID-19 pandemic:

  • 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; and
  • A person is 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.

Taxpayers in the agriculture, fisheries, and tourism industries, with a maximum turnover threshold of FJD 500,000, may be exempt from income tax.

40% of capital expenditure of not less than FJD 50,000 incurred by any existing business located in Vanua Levu is allowed as a deduction for tax purposes, subject to certain conditions.

A 150% deduction is available on expenditure not exceeding FJD 250,000 incurred in marketing goods and services for export to any of the South Pacific countries, excluding Australia and New Zealand.

Income derived by a Fiji citizen from backpacker operations with an annual gross turnover not exceeding FJD 1 million is exempt from income tax.

Income equal to 25% of the total capital expenditure incurred exceeding FJD 250,000 (effective 1 August 2019; previously FJD 1 million) for the modernisation of buildings is exempt from income tax, subject to certain conditions.

Effective 1 August 2019, income derived from a Public Private Partnership investment for a residential housing development is exempt from tax for the term of the partnership, subject to certain conditions.