ICT

ICT business means services provided by a person by way of software development, call centres, customer contact centres, engineering and design, research and development, animation and content creation, distance learning, market research, travel services, finance and accounting services, human resource services, legal services, compliance and risk services or other administrative services (e.g purchasing, etc.), but does not include an internet café or any retail or wholesale of information technology products or the repair, sale or service of any such products.

The income of any new operator who is granted a license from 1 January 2009 to be exempt from tax for a period of 20 years.

Research and development Incentive

A 250% tax deduction is applicable on any expenditure incurred by an eligible ICT company investing in Research and Development.

ICT accredited training institutions

An information Communications Technology training institution is allowed a deduction of 150% for the amount of expenses incurred. The income of any new operator setting up internationally accredited ICT training institutions will be exempted from tax for a period of 20 years from the date of approval by the CEO.

Application design and software development

A person is allowed a deduction for 150% of the amount of expenses incurred in the Information Communications Technology start-ups involved in application design or software development. The income of ICT start-ups involved in application design or software development will be exempted from tax for a period of 20 years from date of approval by the CEO.

Legislative Provision

Income Tax (Exempt Income) Regulations 2016, Part 9 Economic Development Exemptions.

Customs Concessions

Approved companies involved in ICT/BPO operations, ICT accredited trainings institutions and start-ups involved in the application design and software development are eligible for duty concession under Code 261of the Customs Tariff as follows:

Computer, computer parts & accessories, specialized plant, equipment& fittings, specialized furniture and any other goods imported for the purpose of ICT at duty rates of Free Fiscal, Free Import Excise and 9% VAT.

Investment in infrastructure for ICT purposes

Any new investment in the infrastructure for businesses engaged in the ICT Sector will be granted a tax holiday and a duty concession package provided that 90% of the income for the investor shall be derived from the ICT businesses.

  1. Tax Exemption Structure
  • 10 year tax holiday for investments ranging from $2 million to $5 million;
  • 15  year tax holiday for investments ranging from $5 million to $10 million; and
  • 20 year tax holiday for investments ranging above $10 million.
  1. If the investor is also involved in developing strata titles and selling it to ICT/ BPO companies, the sale proceeds will also be exempt from income tax.
  1. Customs Exemption
  • Customs import duty exemption for the establishment of the business. Exemption will include raw materials, machinery and equipment including spare parts.  

The additional tax holiday period will also be extended to existing ICT/ BPO Companies.

Incentive for Investment in an ICT Park

Any new investment in an ICT Park (including data storage services) will be granted a tax holiday and a duty concession package.

  1. Tax Exemption Structure
  • 20 year tax holiday for investments ranging from $10 million to $30 million;
  • 25 year tax holiday for investments ranging above $30 million.
  1. Customs Exemption
  • Customs import duty exemption for the establishment of the business. Exemption will include raw materials, machinery and equipment including spare parts.

Incentive for investment in a Network Cabling and infrastructure

Any company who wishes to invest in network cabling (submarine cable) and associated infrastructure development will be provided a tax holiday and duty concession package. The cable should land in Fiji.

  1. Tax Exemption Structure
  • 30 year tax holiday for investments ranging above $40 million.
  1. Customs Exemption
  • Customs import duty exemption for the establishment of the business. Exemption will include raw materials, machinery and equipment including spare parts.