Timor-Leste

Overview

Last reviewed - 12 February 2020

Timor-Leste is located in Southeast Asia, on the eastern half of Timor Island (400 miles northwest of Darwin, Australia). The western half of Timor Island is part of Indonesia.

Timor-Leste (previously known as East Timor) was declared an Indonesian province in 1975 (previously colonised by Portugal). In 1999, Indonesia relinquished control of the territory, and Timor-Leste started the process to become an independent country. Timor-Leste officially became a sovereign state on 20 May 2002.

Timor-Leste is a democratic republic with a unitary parliamentary democracy with Dili as its capital city. Timor-Leste’s official languages are Tetum and Portuguese, although English and Indonesian are commonly used in business practice.

The currency of Timor-Leste is the United States dollar (USD) based on a declaration of the United Nations Transitional Administration in East Timor (UNTAET) in 2000.

Timor-Leste’s main exports are liquefied natural gas, coffee, sandalwood, and marble, while its main imported goods are food, gasoline, kerosene, and machinery.

PwC does not have a permanent office offering tax services in Timor-Leste. However, PwC Indonesia has a dedicated team responsible for providing consulting services relating to Timor-Leste tax issues.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)

10

Corporate income tax (CIT) due dates
CIT return due date

15th day of the third month following the year end.

CIT final payment due date

15th day of the third month following the year end.

CIT estimated payment due dates

NA

Personal income tax (PIT) rates
Headline PIT rate (%)

10

Personal income tax (PIT) due dates
PIT return due date

By the 15th day of the third month of the following year.

PIT final payment due date

By the 15th day of the third month of the following year.

PIT estimated payment due dates

NP

Value-added tax (VAT) rates
Standard VAT rate (%)

Sales tax on imported goods: 2.5;

Sales tax on other goods: 0

Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy)

Resident: 0 / 0 / 10;

Non-resident: 10 / 10 / 10

Capital gains tax (CGT) rates
Corporate capital gains tax rate (%)

Capital gains are subject to the normal CIT rate.

Individual capital gains tax rate (%)

Capital gains are subject to the normal PIT rate.

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

NA

Inheritance and gift tax rates
Inheritance tax rate (%)

NA

Gift tax rate (%)

NA

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.