Fiji - Taxation

Local councils levy taxes to meet their own expenses. National taxes include a nonresident dividend withholding tax (30%), an interest withholding tax (15%), and a dividend tax. In 2003 a full dividend exemption system is to be introduced to prevent double taxation of dividends. For a resident with taxable income over F $15,000, normal tax is F $2,300 plus 32% of the excess. For a nonresident with taxable income over F $15,000, normal tax is F $3,925 plus 32% of the excess. The normal corporate tax rate in 2001 was 32% on chargeable resident income and 45% on profits of branches of foreign companies. Other taxes include a land sales tax, an excise tax, and a VAT of 12.5%. A plan to reduce the top personal and corporate rate to 30% in 2003 was deferred by the government due to the widening budget deficit, which in 2001, was at 6.5% of GDP in 2001.