Tax
Income Tax Act 2007 with consumption tax at 15%
Income tax under the Income Tax Act 2007 administered by the Ministry of Revenue and Customs, with a consumption tax at 15%. No capital gains tax and no inheritance tax.
Key rules
- Deadline — Income tax returns are due within the period set by the Revenue Services Administration Act after the 30 June year end
- Deadline — Consumption tax returns are filed monthly above the registration threshold
Governing law
- Income Tax Act 2007 (s. 8)
- Consumption Tax Act 2003
- Revenue Services Administration Act 2002
- Customs and Excise Management Act 2007
In practice
The Income Tax Act 2007 modernised a much older regime and taxes residents on worldwide income. The consumption tax is a value added tax in substance despite its name, charged at 15% with a registration threshold. There is no capital gains tax, no inheritance tax and no land transfer duty of the kind found elsewhere — partly because land cannot be sold at all, so the usual conveyancing tax base does not exist. Remittances, which are among the highest in the world as a share of GDP, are not taxed as income in the recipient's hands.