tax incentives

Information Technology Business means any business providing services specifically based on utilising information technology, and delivered by making use of open networks and telecommunications, including the following:

  • call centres - ticketing,
  • ordering and reservation service;
  • database records and list management;
  • data entry and processing;
  • website development and management;
  • software programming and design;
  • tele-medicine;
  • internet service provision.

Retailing or wholesaling of information technology products, and the sale, care, repair or services of any items are excluded.

A.  ICT Businesses Located at the Temporary Studio City Zones

  • Temporary Studio City Zones:
  • USP
  • ATH
  • A 10 - year tax holiday is available to the ICT companies

B.    ICT Businesses Located outside the Temporary Studio City Zones

The following tax incentives will be available for from 1 January 2006 to 31 December 2012 for approved ICT businesses wishing to establish their business outside the zone:

-    80% of the taxpayer’s income shall be exempt from tax  if the business is employing 101 employees or more;
-    60% of the taxpayer’s income shall be exempt from tax  if the business is employing from 60 to 100 employees; and
-    40% of the taxpayer’s income shall be exempt from tax  if the business is employing from 10 to 59 employees

C.    Other Incentives (Both within and outside the temporary studio city zones)

  • Accelerated depreciation allowances on buildings – 20%
  •  Carry forward of losses – 8 yrs
  • Zero Import Duty for Computer Equipment
  • 3% import duty on computer disks
  • Repatriation of profits permitted
  • 40 % Investment Allowance for investment over $50,000

Corporate Tax in Fiji is 31%

Other General Incentives Available for any business establishment in Fiji include:

  • Partial exemption from tax for exporters of Fiji made products & services
  • No withholding tax on dividends
  •  Repatriation of Profits permitted
  • Also Government has a tax regime for businesses that are being established in the northern island (Vanua Levu). This includes 300 percent tax deduction on capital investment, 200 percent tax deduction for first time employees and 100 percent deduction on export income.

Incentives for businesses set up in Kalabu ICT Economic Development Zone
ICT businesses set up in KTFZ are entitled to a tax exemption on their income from 1 January 2007 to 31 December 2016. These incentives will be made available to investors under the following criteria:

  • The ICT business must be located in the Kalabu ICT Economic Free Zone;
  • Business employs 50 employees or more for any 6 months within the income year; and
  • 60 percent of its total sales is exported.

Source:  FTIB

May 2007.