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Fiji Provides Details on Transitional Tax Arising from Repeal of Tax on Dividends — Orbitax Tax News & Alerts

On July 14, 2017, the Fiji Revenue & Customs Authority published a Notice on the 1% Transitional Tax which is part of tax reforms that repealed the Tax on Dividends after 29 June 2017. The Notice sets out details on the 1% Transitional Tax:

  • The 1% Transitional Tax will not apply to Dividends Paid from 2016 and from future Profits.
  • The 1% Transitional Tax still applies to 2014 and 2015 undistributed Profits after tax for which the tax has not been paid.
  • The 1% Transitional Tax also applies to all Pre-2014 undistributed profits after tax, including capital profits in the balance of retained earnings.
  • The 1% Transitional Tax is due on or before September 30, 2017.
  • The 1% Transitional Tax is a final tax:  no further tax will be applicable on Dividends.
  • The Transitional Tax applies the same to both Corporations and Branches registered in Fiji.
  • An Exemption to the Transitional Tax applies to Companies listed on the SPSE.

Click the following link for the Public Notice on Transitional Tax which is effective from 29 June 2017.