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General Incentives

Who will qualify for this incentive?

This incentive is available to a newly incorporated entity engaged in a new business established between 1 January 2018 to 31 December 2028 in the following areas;

Vanua Levu – included Taveuni, Rabi, Kioa and other islands generally included for governments administrative purpose as being in the Northern Division, Rotuma, Kadavu, Levuka, Lomaiviti, Lau and Nausori-Lautoka region (from Nausori Airport side of the Rewa River (excluding township boundary) to the Ba side of the Matawalu River.

Any company may apply to the Minister for Economy in a prescribed form for an operating licence.

Tax Exemptions Available

The income tax exemption is as follows;

·        capital investment from FJ$250,000 to FJ$1,000,000, for a period of 5 consecutive years; or

·        capital investment from FJ$1,000,000 to FJ$2,000,000, for a period of 7 consecutive years; or

·        capital investment above FJ$2,000,000 for a period of 13 consecutive years.

Benefits under the Tax-Free Region

·        Duty concession on the importation of raw materials, machinery and equipment (including parts and materials) insofar as they are required for the establishment of the business at rates of Free Fiscal, Free Import Excise and 9% VAT.

·        Additional 5 years of income tax exemption is available to any company granted a license and having indigenous Fijian landowner equity of at least 25 percent.

·        Additional 7 years of income tax exemption is available to any hotel developer granted a license and having indigenous Fijian landowner equity of at least 25 percent.



Policy Incentive

Description

Export Income Deduction

60% for the tax years 2020, 2021 and 2022.

Incentive for Renovations of Buildings

25 percent investment allowance for the refurbishment to the exterior of a building is granted under the Income Tax (Renovation of Building Incentive) Regulations, given a minimum spend of $250,000.

The incentive includes other buildings apart from those in towns and cities but will only be available to commercial buildings.

Incentives for construction of warehouses or similar investments

Incentive Package 1: Companies engaging in warehousing business.

·        Income tax exemption based on the following capital investment levels:

Capital Investment ($)

Tax Holiday

$250,000 - $1,000,000

5 Years

$1,000,000 - $2,000,000

7 Years

More than $2,000,000

13 Years

·        Import duty exemption on raw materials, plant, machinery and equipment (including spare parts) required for the establishment of the business.

 

Incentive Package 2: A new or existing company engaging/ engaged in any business; invests in warehouses.

·        50% investment allowance for capital investment more than $1 million.

·        100% investment allowance for capital investment more than $2 million.

Loss Carried Forward

8-year loss carried forward provision applicable to losses incurred in financial year starting 1 January 2019 and onwards.

Business losses

Business losses of up to $20,000 will be allowed to be deducted against employment income to compute the chargeable income and the overall tax position of the personal income taxpayers.

Air Waybills

$10 Stamp Duty on Air Waybills for any goods, merchandise, or effects exported from Fiji has been removed.

Thin Capitalization

The debt-to-equity ratio is 3:1. Therefore, a higher amount of tax deductibility in relation interest will be allowed for foreign controlled Fiji company.

Depreciation write-off incentive

A 100% write-off on purchase of fixed assets of up to $10,000 used for business purposes

Accelerated Depreciation

A 100% write-off for the construction of a new commercial and industrial building

Tax incentives for Corporate Bonds

A 150% tax deduction is allowed to companies for listing of corporate bonds with the South Pacific Stock Exchange (SPSE). This deduction will be applied on the cost of listing.
• A 150% tax deduction is allowed on interest paid on corporate bonds.
• Interest income earned on corporate bonds is exempt from tax.

Capital Gains Tax (CGT)

$30,000 CGT exemption threshold for capital gains made by a resident individual or Fijian citizen.

Fringe Benefit Tax

A tax deduction is allowed to the employer for Fringe Benefits Tax.

Non-Resident Withholding Tax

Accommodation provided or reimbursed, airfare, transport and allowances has been excluded from the application of Non-Resident Withholding Tax.

Corporate Reorganization

Deferral rules for company incorporation has been introduced.

Transfer of assets by an individual shareholder to a company at the point of incorporation will not be subject to tax. Subsequently, disposal of assets will be subject to normal tax.

Stamp Duty

Stamp Duty Act has been repealed.

Duty and Taxes

Customs duty and excise tax deductions have been made for over 1,600 products, across all sectors