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Timor-Leste
Overview
Last reviewed - 23 July 2024Timor-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 |
Last day of the third month following the year-end. |
| CIT final payment due date |
Last 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 last day of the third month of the following year. |
| PIT final payment due date |
By the last 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 (%) (Dividends/Interest/Royalties) |
Resident: 0 / 0 / 10; Non-resident: 10 / 10 / 10 |
| Capital gains tax (CGT) rates | |
|---|---|
| Headline corporate capital gains tax rate (%) |
Capital gains are subject to the normal CIT rate. |
| Headline 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 | |
|---|---|
| Headline inheritance tax rate (%) |
NA |
| Headline gift tax rate (%) |
NA |
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