Tax
Income tax plus goods tax and sales tax, with VAT legislated but pending
Income tax under the Income Tax Act administered by Inland Revenue, with consumption taxed through goods tax and sales tax rather than a VAT. A value added tax has been legislated but is not yet the operative regime.
Key rules
- Deadline — Income tax returns are due by 31 March following the year end
- Deadline — Goods tax and sales tax are accounted for monthly
Governing law
- Income Tax Act (Cap. 123) (s. 3)
- Goods Tax ActCap. 122
- Sales Tax ActCap. 125
- Value Added Tax Act 2022
In practice
The consumption tax position is the point most often stated wrongly: Solomon Islands has historically operated a goods tax on manufactured and imported goods plus a sales tax on certain services, not a VAT, and the composite effect differs from a single VAT rate. A Value Added Tax Act was passed as part of a reform programme intended to replace both, but the commencement and transition should be verified against current Inland Revenue guidance before relying on either regime. There is no capital gains tax and no inheritance tax. Withholding taxes apply to payments to non-residents, and resource-sector operations attract specific export duties.