Nonresidents are taxed only on their income from sources in Cook Islands.
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$)|
|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 nonresident companies are subject to corporate income tax at a flat rate of 28%. Income-generating expenses are deductible when calculating taxable income.