RESIDENTIAL HOUSING DEVELOPMENT PACKAGE

This incentive is specifically designed to encourage investment in the development of residential housing/units and ensure availability of affordable housing to the people of Fiji.

CONDITIONS

• The project should commence on or after 01 January 2016; and
• The building should be completed within 2 years from the date the provisional approval was granted.
• Capital investment (including the cost of support infrastructure and overseas consultant fees but excluding the cost of land) should exceed FJD2,000,000;
• The development should have at least 20residential housing units;
• The sale price of a unit should be below$300,000 (VIP):
  
  • In the case of a ground level development, for at least 15% of the units in the development; and
  • In the case of a multi-storey development, for at least 15% of the units on each storey for the first 5 storeys of the development.

TAX BENEFIT

• Income Tax Exemption: developer profits from the sale of residential units shall be exempt from tax;
• Tax Rebate -the owner will be eligible for a rebate on the Total Capital Expenditure(TCE), based on the following sale price per unit range 1:
  
  • Less than FJD100,000 - 7% of TCE;
  • FJD100,001- FJD200,000: 5% TCE; and
  • FJD200,001- FJD300,000: 3% Of TCE.

CUSTOMS CONCESSION

Approved companies engaged in the development of residential housing/ units are eligible for duty concession under Code 293 for capital goods including capital equipment, plant, machinery and other goods at a concessionary rate of Free Fiscal Duty, Free Import Excise and VAT applicable. This does not include kitchenware, raw materials, furniture and other prescribed goods.

NEW RESIDENTIAL HOUSING DEVELOPMENT PACKAGE

CONDITIONS

• The project should commence on or after 01 August 2022; and
• The Building should be completed within 2 years from the date the provisional approval was granted.
• Capital investment (including the cost of support infrastructure and overseas consultant fees but excluding the cost of land) should exceed FJD5,000,000;
• The development should have at least 10residential housing units;

TAX BENEFIT

• Income Tax Exemption: 50% developer profits from the sale of residential units shall be exempt from tax

CUSTOMS CONCESSION

Approved companies engaged in the development of residential housing/ units are eligible for duty concession under Code 293 for capital goods including capital equipment, plant, machinery and other goods at a concessionary rate of Free Fiscal Duty, Free Import Excise and VAT. This does not include kitchenware, raw materials, furniture and other prescribed goods.

LEGISLATIVE PROVISION

1. 1. Income Tax (Residential Housing Development Package) Regulations 2016
2. Customs Tariff Act 1986, Part 3, Schedule 2.

RE-CYCLING BUSINESS INVESTMENT PACKAGE

This incentive is specifically designed to assist companies establishing a new recycling business, factory or plant that is engaged in the recycling of waste materials into a recycled product, material or substance.

CONDITIONS

• The project commences on or after 1 August 2021 and the project is completed within 2 years from the date of the provisional approval.
• The company should have obtained a letter from the Department of Environment confirming that the screening process for ElA or ElA has been undertaken and is approved by the Department.
• The recycled product must meet the applicable national or international quality standard.

‍TAX BENEFIT

The income of any approved new recycling business will be exempted from tax as follows:

• Capital investment from FJD250,000 toFJD500,000, for a period of 3 consecutive fiscal years; or
• Capital investment from FJD500,001 toFJD2,000,000, for a period of 5 consecutive fiscal years; or
• Capital investment from FJD2,000,001 toFJD5,000,000, for a period of 10 consecutive fiscal years, or Capital investment fromFJD5,000,001 to FJD10,000,000, for a period of 15 consecutive fiscal years, or
• Capital investment above FJD10,000,000 fora period of 20 consecutive fiscal years.

CUSTOMS CONCESSION

Approved companies engaged in the recycling business are eligible for duty concessions under Code 306 of the Customs Tariff or importation of raw materials, machinery and equipment including spare parts at a rate of Free Fiscal Duty, Free Import Excise and depending on the type of good, the VAT applicable.

LEGISLATIVE PROVISION

1. Income Tax (Recycling Business Investment Incentives) Regulations 2021.
2. Customs Tariff Act 1986, Part 3, Schedule 2.

GOVERNMENT BUILDING INVESTMENT INCENTIVE

This incentive is specifically designed to assist companies engaged in the construction, renovation or refurbishment of a building to be used by the Government or an entity approved by the Government.

CONDITIONS

• The project must commence on or after 1 August 2020 and the project shall be completed in accordance with the terms agreed to by the applicant and the Government or entity approved by the Government.
• The person or company should have evidence that the Government or the entity approved by the Government has given the applicant a written undertaking to use the building upon completion of the project.

TAX BENEFIT

The approved company is entitled to tax exemption on the rental income derived from the lease of the building.

CUSTOMS CONCESSIONS

Approved companies engaged in the construction, renovation or refurbishment of a building used by the Government or entity approved by the Government are eligible for duty concessions under Code 300 of the Customs Tariff for importation of raw materials, plant, equipment and machinery at a rate of Free Fiscal Duty, Free Import Excise and depending on the type of good, the VAT applicable.

LEGISLATIVE PROVISION

1. Income Tax (Government Building Investment Incentives) Regulations 2020.
2. Customs Tariff Act 1986, Part 3, Schedule 2.

MARITIME VESSELS INVESTMENT ALLOWANCE

This incentive is specifically designed for persons who wish to construct, renovate or refurbish a seagoing vessel in Fiji.

CONDITIONS

• The vessel should be built in Fiji at a minimum investment level of FJD250,000.
• The vessel should have a Maritime Safety Authority of Fiji (MSAF) approved Plan.
• Only vessels that is wholly or principally engaged in the carriage of tourists within Fiji and provides accommodation for more than 3 nights are eligible for refurbishment or renovation.
• Existing vessels undergoing refurbishment and renovation should be in operation for a period of not less than 5 years.

TAX BENEFIT

Investment allowance of 55% of total capital expenditure incurred in the construction of the vessel is allowed as a deduction.

LEGISLATIVE PROVISION

1. Income Tax (Maritime Vessels Investment Allowance) Regulations 2016.

DONATIONS TOWARDS STARTUPS

A 150% tax deduction will be available for donations made by a business towards Accredited Start-Up Support Programs such as accredited startup incubators, accelerators, and entrepreneurship development programs

SUB-DIVISION OF LAND INCENTIVE

This incentive is specifically designed to assist individuals/companies undertaking subdivision of land for residential or commercial purposes.

CONDITIONS

• The project must commence on or after 1 August 2020 and the project commences within 2 years from the date of the provisional approval.
• Applicable to persons/companies engaged in the subdivision of land for residential or commercial purposes and includes works undertaken to acquire an approval for the subdivision of land under the Subdivision of Land Act 1937.

TAX BENEFIT

Upon final approval, the income of the approved person/ company shall be exempt from tax on developer profits derived from the project.

CUSTOMS CONCESSION

Companies or entities engaged in subdivision of land are eligible for duty concessions under Code299 of the Customs Tariff for importation of raw materials, equipment and machinery at a rate of Free Fiscal Duty, Free Import Excise and depending on the type of good, the VAT applicable.

LEGISLATIVE PROVISION

1. Income Tax (Subdivision of Land Incentives) Regulations 2020.
2. Customs Tariff Act 1986, Part 3, Schedule 2.

DONATIONS TOWARDS PUBLIC HEALTH

A 100% tax deduction will be allowed for donations made by a business to health centers, nursing stations, aged care facilities, orphanages and drug rehabilitation centers.

TAX FREE REGION INCENTIVE

This incentive is available to a newly incorporated entity engaged in a new business established 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
  • Lomaiviti
  • Lau
• Nausori-Lautoka region (from Nausori Airport side of the Rewa River (excluding township boundary) to the Ba side of the Matawalu River)
• Naboro - for companies that are engaged in waste management business only
• Tamavua ICT Park - for companies that are engaged in ICT business as defined in the Income Tax (Tax Free Region Incentives)Regulations 2016.
• Pacific Koro Business Park – business approved to establish the park located at Kalabu, Valelevu.
• The TFR will be extended to the Wainadoi region for businesses who invest in activities such as waste management, recycling and renewable energy.

CRITERIA FOR GRANT OF LICENCE

• The company is a newly incorporated entity engaged in a new business; and
• The minimum initial level of investment should be FJD250,000; or
• The minimum initial level of investment for the Tamavua ICT Park should be FJD10,000,000

TAX BENEFIT

The income of any new activity approved and established in the region shall be exempt from tax as follows:

• Capital investment from FJD250,000 to FJD1,000,000, for a period of 5 years; or
• Capital investment from FJD1,000,001 toFJD2,000,000, for a period of 7 consecutive fiscal years; or
• Capital investment above FJD2,000,000 for a period of 13 consecutive fiscal years

‍CUSTOMS CONCESSION

Approved companies under the tax free region incentives are eligible for duty concession under Code 290, Code 295 (for waste recycling plants)and Code 304 (for ICT Park) of the Customs Tariff on the importation of raw materials, machinery and equipment (including spare parts and materials) required for the initial establishment of the business at rates of Free Fiscal, Free Import Excise and VAT applicable.

OTHER BENEFITS UNDER THE TAX FREEREGION

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.

EXISTING INDIGENOUS BUSINESS

Existing indigenous companies that are entirely owned by itaukei individuals are eligible to qualify for the TFR incentive provided it makes a new capital investment above FJD250,000.

‍LEGISLATIVE PROVISION

• Income Tax (Tax Free Region Incentives) Regulations 2016.
• Customs Tariff Act 1986, Part 3, Schedule 2.