STANDARD ALLOWANCE

This incentive is specifically designed to assist in the construction of new hotels, renovation and refurbishment and extension of existing hotels or integrated tourism development.

CONDITIONS

Approved hotels shall commence construction of the project within two years from the date the provisional approval was granted. Investment Allowance can only be written-off against the income of the hotel business or income from the hotel premises.» There should not be any shift of tax revenue to other countries.

TAX BENEFIT

Investment Allowance of 25% of total capital expenditure is allowed as a deduction.

TAX INCENTIVE FOR TOUR OPERATORS

• A new incentive with a 25% investment allowance will be available to new investments made by businesses involved in providing a tour activity in Fiji. Tour activity means any approved non-accommodation activity provided by a registered business and includes beach clubs, diving, snorkeling, trekking, surfing, zip lining, river safaris, kayaking, tubing, water parks, and nature tours.
• The minimum threshold to qualify for the investment allowance is $100,000.

SHORT LIFE INVESTMENT PACKAGE (SLIP)

• This incentive is designed to assist:
• The construction of new hotels and integrated tourism development; and
• The company applying for a short life investment package is carrying out the short life investment project as its first business.
• 20-year tax holiday available to new hotels and to companies who acquire existing hotels & resorts to undertake extensions & refurbishments over FJ$50,000,000

CONDITIONS

• The approved project shall be completed within 24 months from the date the provisional approval was granted.
• SLIP Incentives is also available for retirement resorts and hospital resorts, provided the length of stay is not more than 3 months.

TAX BENEFIT

The income of any approved new hotel will be exempt from tax as follows:

• Capital investment from FJ$250,000 to FJ$1,000,000 for 5 consecutive fiscal years; or
• Capital investment from FJ$1,000,001 toFJ$2,000,000 for 7 consecutive fiscal years; or
• Capital investment from FJ$2,000,001 toFJ$40,000,000 for 13 consecutive fiscal years; or
• Capital investment above FJ$40,000,000 for20 consecutive fiscal years.

CUSTOMS CONCESSIONS

Approved companies under the SLIP incentive are eligible for duty concession under:

• Code 235A of the Customs Tariff on building materials, furnishings and fittings, equipment including front office equipment, room amenities, kitchen and dining room equipment and utensils, specialised watersports equipment e.g. water bikes and other similar goods at a rate of 3% Fiscal Duty; and
• Code 244 of the Customs Tariff on all capital goods (including capital equipment, plant & machinery including building materials, furnishings and fittings, room amenities, kitchen and dining room equipment and utensils and specialised water sports equipment) not available in Fiji, at a rate of 0% fiscal duty.

OTHER INCENTIVES

EXEMPT INCOME BACKPACKER OPERATORS

In accordance with Part 9, Income Tax (Exempt Income) Regulations 2016, locally owned backpacker operators are exempt from income tax provided their annual gross turnover is not exceedingFJ$1,000,000.

JET SKIS

In accordance with Code 270 to Part 3 of the Customs Tariff, approved companies registered to operate water sports related businesses and other tourism related activities are eligible for duty concession for jet skis at a rate of 5% Fiscal Duty, Free Import Excise and VAT applicable.

EXISTING HOTELS AND RESORTS

In accordance with Code 235 of Part 3 of the Customs Tariff, approved hotels and resorts are eligible for duty concession on building materials, furnishings and fittings, equipment including front office equipment, room amenities, kitchen and dining room equipment/utensils, specialised water sports equipment e.g. water bikes and other similar goods.

LEGISLATIVE PROVISION

1. Income Tax (Hotel Investment Incentives) Regulations 2016
2. Income Tax (Exempt Income) Regulations2016.
3. Customs Tariff Act 1986, Part 3, Schedule 2.

RETIREMENT VILLAGE INCENTIVES

This incentive is specifically designed to encourage investment in the construction of retirement villages and aged care facilities.

CONDITIONS

• Applicable to companies engaged in development of a retirement village or aged care facility, equipped with facilities, services (including health services) and amenities suitable for retirees.
• Capital investment over FJD 250,000.
• The project should be completed within 2 years from the date the provisional approval was granted.

TAX BENEFIT

Income of the approved company will be exempt from tax as follows:

• Capital investment from FJD250,000 to FJD1,000,000, for a period of 5 consecutive fiscal years;
• Capital investment from FJD 1,000,001 toFJD2,000,000, for a period of 7 consecutive fiscal years; and
• Capital investment of more thanFJD2,000,001, for a period of 13 consecutive fiscal years.

CUSTOMS CONCESSIONS

Companies or entities engaged in the construction of retirement village are eligible for duty concessions under Code 297 for importation of raw materials, machinery and equipment (including parts and materials) for the initial establishment of the facility at a rate of Free Fiscal Duty, Free Import Excise and depending on the type of good, the VAT applicable.

LEGISLATIVE PROVISION

Part 2, Income Tax (Retirement Village Incentives)Regulations 2019

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