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 is 6%, respectively. The compulsory FNPF employer and employee contributions for 2023 is 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.
Capital gains tax (CGT)
Certain capital gains may be subject to CGT of 10%.
Any gains from the following sales/disposals shall be exempt from CGT:
- Gains by a resident individual or Fiji citizen that do not exceed FJD 16,000. Effective from 1 August 2020, this has been increased to FJD 30,000.
- First residential property or principal place of residence by a resident individual or Fiji citizen.
- Shares listed on the South Pacific Stock Exchange (SPSE). Effective from 19 August 2021, any capital gains made by a person on the disposal of shares (not necessarily shares listed on the SPSE) 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). Effective from 1 January 2023, this exemption only applies to Fiji resident persons and Fiji citizens.
- Shares in any unit trust in Fiji, subject to certain conditions.
- An asset that is used solely to derive income exempt from tax under the FITA. However, disposal of shares (apart from those listed separately) are not exempt for CGT purposes.
- Capital assets (including shares) by a Fiji resident as part of the process for listing on the SPSE, subject to certain conditions.
Value-added tax (VAT)
VAT of 9% or 15% is generally levied on the supply of goods and services in Fiji. See the Other taxes section in the Corporate tax summary for more information.
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, plastics, and personal income 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 were 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).
Estate or inheritance tax
There are no estate or inheritance taxes in Fiji.
There are no gift taxes in Fiji.
There are no property taxes at the national level. However, the municipalities may charge property rates in their respective areas.
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%).
Effective from 1 August 2020, the Stamp Duty Act will be repealed; however, any document that is executed or takes effect before 1 August 2020 remains subject to stamp duty.
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.