ICT Sector

Information Communication Technology

The Information, Communication and Technology (ICT) industry is considered as one of the most competitive and dynamic industries in the world. Fiji has managed to secure its position in attracting some renowned ICT investors to locate their back office operations in the country.

The objective for Fiji’s ICT industry is to harness Fiji’s ideal geographic location, competent workforce and world-class IT infrastructure to promote Fiji’s capability and competitiveness and create a dynamic, vibrant and well-connected e-society.

Zone (GMT+12) “where the day begins and ends” provides a “time-zone” business advantage not only to East Asia but also to the US and Europe. This makes it possible for industries and firms to process data, manage call centres, analyze results and develop customer and technical solutions “overnight” from these regions, thus significantly lowering operating costs and time sensitive operations in those markets.

Fiji has a good English speaking populace.

Pro-business and pro-consumer policies and legislations.

ICT/IT Incentives

The income of an Income Communication Technology (ICT) operator operating in the declared Kalabu Tax Free Zone from 1 January 2007 to 31 December 2016 shall be exempt from tax for 10 years.

1.   Income tax exemption is available to ICT investors under the following criteria:-

·         Business employs 50 employees or more for any 6 months within the income year; and

·         60 % of its total services is exported.

2.   The income of an ICT operator anywhere outside the Kalabu Tax Free Zone who is granted a license between 1 January 2008 and 31 December 2010 shall be exempt from tax for 10 years.

·   Any ICT operator may apply and pay a license fee of $1,000 per annum to the Commissioner of Inland Revenue. The Tax exemption is granted from the date of the initial license.

·   Income tax exemption is available to ICT investors under the following criteria:-

·         Business employs 50 employees or more for any 6 months within the income year; and

·         60 % of its total services is exported.

3. The income of any new operator who is granted a license from 1 January 2009 to be exempt from tax for a period of 13 years

• Any new operator may apply and pay a license fee of $1,000 per annum to the Commissioner of Inland Revenue. The Tax exemption is granted from the date of the initial license.

• Income tax exemption is available to investors under the following criteria:-

• Business employs 50 employees or more for any 6 months within the income year; and

·   50 % of its total services is exported.

·   Duty free importation of computer, computer parts & accessories, plant, equipment & fittings, and specilised furniture for initial establishment and during its ongoing operations to approved ICT/BOP Business operators from 1 January 2009.

Additional Tax Incentives for ICT Industries

• Tax Exemption is available to new ICT operators and existing ICT businesses for a period commencing 1 January 2006 to 31 December 2012.

• The exemption is available to ICT businesses employing more than 50 employees and investing before 31 December.

• Additional incentives to attract setting up of ICT industries includes:

• 80% income tax exemption for businesses employing 101 or more employees;

• 60% income tax exemption for businesses employing from 60 to 100 employees; and

• 40% income tax exemption for businesses employing from 10 to 59 employees.

KALABU ICT ECONOMIC DEVELOPMENT ZONE

The Fiji Government has declared the Kalabu Tax Free Zone an ICT Economic Development Zone. The Zone is the result of Government’s investment and export development project that was financed by the European Union.