Rental income tax in Fiji is high
October 01, 2018
Effective Tax Rate on Rental Income
|Click here to see a worked example|
Nonresident foreigners are taxed on their Fiji-sourced income. Married couples are assessed and taxed jointly. However, the wife can elect separate taxation with regard to her personal income (employment income, inheritance, own savings, and assets acquired from her own savings).
Social Responsibility Tax
Social responsibility tax is levied at progressive rates.
SOCIAL RESPONSIBILITY TAX 2017
|TAXABLE INCOME, FJD (US$)||TAX RATE|
|Up to 270,000 (US$135,000)||0%|
|270,000 - 300,000 (US$150,000)||13% on band over US$135,000|
|300,000 - 350,000 (US$175,000)||14% on band over US$150,000|
|350,000 - 400,000 (US$200,000)||15% on band over US$175,000|
|400,000 - 450,000 (US$225,000)||16% on band over US$200,000|
|450,000 - 500,000 (US$250,000)||17% on band over US$225,000|
|500,000 - 1,000,000 (US$500,000)||18% on band over US$250,000|
|Over 1,000,000 (US$500,000)||19% on all income over US$500,000|
|Source: Global Property Guide|
Nonresidents are entitled to the following allowances:
- Wife allowance of FJD1,200 (US$600), provided that the wife does not elect for a separate assessment
- Widow or widower allowance of FJD1,000 (US$500)
The taxable income is gross rent less income-generating expenses. Allowable deductions in calculation of taxable income are land rent (if any), local authority rates, property insurance, depreciation, repairs and maintenance. The depreciation rate for buildings is generally 1.25% per annum.
Capital gains tax is levied at a flat rate of 10%. Taxable capital gains are calculated by deducting acquisition costs and incidental expenses from the selling price or market value of the property.
There are no property taxes in Fiji.