Income tax in Cook Islands
December 03, 2015
Residents are taxed on their worldwide income.
Non-Cook Islanders seeking permission to reside or do business in the Cook Islands are regulated by the Development Investment Act 1995-6, the Leases Restrictions Act 1976 and the Entry Residence and Departure Act 1977.
Taxable income includes (1) all profits or gains derived from a business, (2) all salaries, wages or allowances, (3) all rents, fines, premiums or other revenues, (4) all royalties or other like payments, (5) interests, (6) dividends and annuities, (7) profits or gains derived from the use or occupation of any land, and (8) income from other sources.
Income and capital gains earned by residents are taxed at progressive rates. Residents are entitled to a maximum deduction of NZD10,000 (US$6,849).
INCOME TAX FOR NON-RESIDENTS
|TAXABLE INCOME, NZD(US$)|
|Up to 4,000 (US$2,740)|
|4,000 - 24,000 (US$16,438)|
|Over 24,000 (US$16,438)|
|Source: Global Property Guide|
Rental income is taxed in the islands. The taxable income is the gross rent less income-generating expenses.
Capital gains realized from selling real property are considered ordinary income and taxed at the standard income tax rates.
There are no property taxes in Cook Islands.
Income and capital gains earned by resident companies are subject to corporate income tax at a flat rate of 20%. Income-generating expenses are deductible when calculating taxable income.