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Investment Policies
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Investment Policies

For Investors  >  Doing Business in Fiji  >  Investment Policies

The Fiji Government recognises the importance of both local and foreign sources of private investment. Both are acknowledged and valued for the different expertise, strengths and economic contributions they offer to the Fiji. Local investors are often well placed to access Fiji’s many natural and human resources, link with existing entrepreneurs and enterprises, and make appropriate business risk assessments. Foreign investors are recognised for their capacity to access substantial capital funds, transfer new technology, techniques, products and organisational systems, draw on diverse skills and expertise, develop domestic human capital, and use their information and networks to access ever-changing market opportunities in our globalised economic environment.

Foreign Investment Access

All foreign investments are required to obtain a Foreign Investment Registration Certificate from Investment Fiji prior to establishing a business in Fiji. A foreign investment is defined as an investment with any level of shareholding or ownership held by a foreign citizen. The Foreign Investment Act 1999 and Foreign Investment (Amendment) Act 2004 and the Foreign Investment Regulation 2009, govern the facilitation, registration and regulation of foreign investment in the Fiji.

The foreign investment legislation provides a simple, transparent and non-discretionary system to facilitate the entry of all foreign investment into the Fiji. Under this legislation, foreign investors have market access rights to all sectors of the private economy, except for the ‘Reserved list’ of a limited number of economic activities that are specifically reserved for local investors. This is to limit foreign investment in sectors of the economy government believes is adequately serviced by domestic investment and encourages partnerships in other strategic sectors. Such reservations and restrictions are clearly set out and readily available to prospective investors in the Foreign Investment Regulations 2009.

The Investment Fiji administers the Foreign Investment Act. Foreign investors apply using a prescribed form to register with the Investment Fiji. The Investment Fiji registers foreign investors in compliance with the legislation i.e. on the basis of the reserved and restricted lists. Decisions are made within five days of lodging a complete application, to enable them to commence the process of business establishment.

 

Guarantees

Fiji’s foreign investment legislation provides a series of guarantees to foreign investors, including guarantees concerning:

  1. Protection regarding the compulsory acquisition of property.
  2. The right to repatriate or remit funds.
  3. The right of recourse to Fiji’s justice system to settle investment disputes.
  4. Application of the principles of Convention on the Settlement of Investment Disputes between States and nationals of other States, to which the Fiji is party.
  5. Non-discrimination among foreign investors on the grounds of nationality.

Competitive Taxation for Investors

Employment Taxation Scheme – 150% of the salary and wages paid within 1 January 1997 and 31 December 2012 are tax deductible. The deduction is restricted to salary and wages paid in respect of 12-month period commencing from the date of the appointment of the employee provided he or she has not previously been in full-time paid employment.

Reduce Corporate Tax Rate to 20%.

The marginal income tax rate for lower band 7%; the rate for middle income tax band 18%, and the income tax marginal rate for the top band 20% in line with the corporate tax.

Fiji offers attractive Investment Incentives as below:

HOTEL INDUSTRY
Investment allowance (in addition to ordinary depreciation) of 55% of total capital expenditure is allowed as a deduction provided there is no shift of tax revenue to other countries.
Applicable to building of new hotel including renovations or refurbishments or extensions of existing hotel and International Retiree Facilities.

AUDIO VISUAL INDUSTRY
150% deduction for capital expenditure on an F1 audio-visual production.
125% deduction for capital expenditure on an F2 audio-visual production.

AGRICULTURE INDUSTRY
The income of any new activity in commercial agricultural farming and agro-processing approved and established from 1 January 2010 to 31 December 2014 shall be exempt from tax for 10 consecutive fiscal years with a capital investment of $2,000,000 or more.

MANUFACTURING INDUSTRY
100% of the amount of investment as a deduction for investing in food processing as well as forestry.
5 year tax holiday is available to a taxpayer undertaking a new activity in renewable energy projects and power cogeneration.
Duty free importation of renewable energy goods.

ICT INDUSTRY
Income tax exemption is available to ICT investors under the following criteria:-
Business employs 50 employees
60% of its total services exported

TAX FREE REGIONS
Available to newly incorporated entity established in the following areas:-
Vanua Levu - included Taveuni, Rabi, Kioa, and other northern islands.
Rotuma, Kadavu, Levuka, Lomaiviti and Lau.
The minimum level of investment should be $250,000.
Tax and duty exemption are also available should you wish to set up your operations in one of these tax free areas.

FIJI MY SECOND HOME
Is open to citizens of other countries recognized by Fiji in the “Fiji My Second Home Programme” as administered by the Reserve Bank of Fiji.
If age below 50 - minimum deposit of $150,000 and maintain the deposit in Fiji for a minimum of two years.
If age above 50 - minimum deposit of $100,000 and maintain the deposit in Fiji for a minimum of two years.
To qualify the applicant must maintain a minimum balance of $50,000 from the 3rd year onwards and throughout the stay in Fiji.

FOREIGN CURRENCY ACCOUNT SCHEME
Interest income is exempt from tax which accrues to or in favor of a non-resident including former Fiji residents who hold funds in Fiji commercial bank accounts under the following criteria:

For foreign currency accounts, interest income for deposit above the equivalent of FJD$150,000;
For Fiji Dollar accounts, any amount of interest income.

 

All investors are required to lodge an application for a tax identification number to the Chief Executive Officer, Fiji Revenue and Customs Authority. This provides the basis for investors to pay taxes on their business earnings, pay as you earn (PAYE) tax on behalf of their employees and value added tax (VAT) on the products and services it sells in the country.
 

Freedom to Repatriate Funds
Under the current exchange control regulations, local investors are free to remit funds abroad to meet the costs of obligations incurred overseas.
In addition, foreign investors are able to remit profits and capital earned from its operations in Fiji. At present, there are no limits to the amount that can be repatriated as profits and earnings, subject to application to the Reserve Bank of Fiji.

The Reserve Bank officials can readily provide investors with complete information on the requirements relating to remittances offshore.
 

Financing Investment 
Government encourages a competitive domestic financial market. Local investors are freely able to seek finance for their investments from domestic financial institutions, ranging from fully commercial banking institutions to concessionary development financiers.

Foreign investors (companies) are allowed to borrow $3 for every $1 invested in Fiji and up to a total of F$10m from local lending institutions without the approval of the Reserve Bank of Fiji. Foreign investors wishing to borrow more than this delegated limit must apply to the Reserve Bank of Fiji through their designated lending institution.

Individual foreign investors may also borrow locally up to F$0.5m without the approval of the Reserve Bank of Fiji.
 

Entitlement to Work Permits 
The Department of Immigration administers the Immigration Act, and its officers will provide investors with any information they require on its legislative provisions. All applications for work permits should be made to the Department of Immigration, in accordance with the forms and procedures specified therein. In addition, the Department of Immigration has within it a special unit that specifically handles the processing of all investment related work permits.

All investors, local and foreign, may apply to the Department of Immigration for work permits to employ expatriate skilled technical personnel. In accordance with the provisions of the Immigration Act, work permits for up to a maximum of three years may be granted at any one time to expatriates, whose skills are unavailable in the domestic labour market. Investors are expected to develop and implement plans to train locals to understudy, these expatriate employees.

Government therefore welcomes equally local and foreign private investors. Government is also strongly committed to stimulating and facilitating all private investment, whether from local or foreign sources.