Contributions to the Fiji National Provident Fund (FNPF)
All employers and employees must contribute an amount equal to at least 10% and 8%, respectively, of the gross cash earnings of all employees to the FNPF. Effective 1 April 2020, the FNPF employer and employee contributions have been reduced to 5% respectively as part of the government’s COVID-19 response.
Foreign employees are not required to contribute to the FNPF. However, employers have the option to include foreign employees by informing the FNPF in writing of both their and the employees intention to register with the FNPF.
Employers are required to deduct and remit monthly to the tax authority appropriate pay-as-you-earn (PAYE) tax and SRT (including ECAL) from employee gross cash emoluments.
If appropriate PAYE tax and SRT 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.
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 FJD30,000.
- First residential property or principal place of residence by a resident individual or Fiji citizen.
- Shares listed on the South Pacific Stock Exchange (SPSE).
- 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% 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)
Effective from 1 August 2020, the Service Turnover Tax Act will be repealed however any transaction entered into and paid before 1 August 2020 remains subject to STT at the rate of 6%.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 for the prescribed service 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 on the same service.
Effective from 1 August 2020, the following amendments become applicable:
- STT has been repealed;
- ECAL has been reduced from 10% to 5% on prescribed services, income, superyacht charter fees, imported white goods and imported vehicles; and
- The threshold for application of ECAL has been increased from FJ$1.25 million to FJ$ 3million.
The following shall also be subject to ECAL:
- Taxable income in excess of FJD 270,000 derived by individuals.
- Prescribed plastic bags at 20 cents per bag (50 cents effective from 1 January 2020).
- Import of new or used luxury vehicles with engine capacity exceeding 3000cc, hybrid vehicles, and certain electrical goods, subject to certain exemptions. This has been repealed effective from 1 August 2020.
- Charter of superyachts.
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 which 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.