Tax on property income in Cook Islands

December 03, 2015

INDIVIDUAL TAXATION

Nonresidents are taxed only on their income from sources in Cook Islands.

INCOME TAX

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 nonresidents is taxed at progressive rates, from 20% to 30%.

INCOME TAX FOR NON-RESIDENTS

TAXABLE INCOME, NZD(US$)
TAX RATE
Up to 4,000 (US$2,740)
20%
4,000 - 24,000 (US$16,438)
25%
Over 24,000 (US$16,438)
30%
Source: Global Property Guide

RENTAL INCOME
Rental income is taxed in the islands. The taxable income is the gross rent less income-generating expenses.

CAPITAL GAINS
Capital gains realized from selling real property are considered ordinary income and taxed at the standard income tax rates.


PROPERTY TAX


There are no property taxes in Cook Islands.

CORPORATE TAXATION

INCOME TAX

Income and capital gains earned by nonresident companies are subject to corporate income tax at a flat rate of 28%. Income-generating expenses are deductible when calculating taxable income.

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