Timor-Leste

Tax returns

An individual who derives income from business activities is required to lodge an Annual Income Tax Return by the last day of the third month of the following year.

An individual who receives income only from wages that have been correctly subject to WIT is not required to submit an Annual Income Tax Return.

Payment of tax

An individual who is required to settle income tax is required to do so by the due date of the tax returns (i.e. the last day of the third month of the following year).

Statute of limitations

The Timor-Leste tax authority may issue an assessment notice or amend an assessment notice only within five years from the date of filing of the return. In the event of a deliberate tax evasion or fraud, there is no time limit for the issuance of an assessment notice.

Assessments may occur upon the following:

• The delivery of a tax return form and payment.
• After receipt of a return where the Commissioner believes a return is incorrect.
• Where a taxpayer fails to file a return.

Assessments may be amended according to the following events:

• By the taxpayer upon delivery to the Commissioner of an amended assessment.
• Via a taxpayer request to the Commissioner.
• Via specific amendment by the Commissioner.