The Fiji Revenue and Customs Services has published an overview of the revenue policies for tax relief included as part of the COVID-19 Response Budget. The various Acts for the budget measures were approved on 27 March 2020 and generally apply from 1 April. Some of the main measures are summarized as follows:

• The Export Income Deduction (EID) is increased from 50% to 60% for the tax years 2020, 2021; and 2022;
• The New Hotel Investment Incentive Package is replaced with a new package that applies from 1 April 2020 to 31 December 2022 and includes:
  • an income tax exemption (tax holiday) for 5 to 13 years for the construction of new hotels based on the capital investment level:
    • FJD 250,000 - 1,000,000: 5 Years  
    • FJD 1,000,000 - 2,000,000: 7 Years  
    • more than FJD 2,000,000: 13 Years
  • a standard investment allowance of 25% on the capital expenditure incurred for the construction, renovation, refurbishment, and extension of new and existing hotels;
• Advance tax payment rules are adjusted until 31 December 2020 so that 9 payments may be made instead of the standard 3 payments, and penalties on estimated tax are removed;
• From 1 April to 31 December 2020, debt forgiveness will not be subject to income tax, which applies for forgiving any outstanding debt;
• The thin capitalization rules are suspended for borrowings undertaken from 1 April to 31 December 2020;
• A 300% tax deduction will be allowed to employers for wages/salary paid to employees who are quarantined and approved by the Ministry of Health and Medical Services.
• The Employment Taxation Scheme is incentivized further as follows, and extended to 2023:  
  • the tax deduction on wages paid on the first full-time employee is increased from 200% to 300%;
  • the tax deduction on wages paid for work placements in the related area of study up to 6 months in a year before graduation, as part of the course requirements is increased from 200% to 300%;
  • the tax deduction on wages paid to students employed on a part-time basis (in the related area of study up to 3 months in a 12-month period) is increased from 200% to 300%; and
  • the tax deduction on wages paid in the employment of disabled people employed for 3 consecutive years is increased from 300% to 400%;
• A 300% tax deduction is available for donations made to the COVID-19 Fund;  
• A 100% write-off is provided for purchases of fixed assets of up to FJD 10,000 for business purposes up to 31 December 2020;
• A 100% write-off is provided for the construction of new commercial and industrial buildings, provided approvals are obtained prior to 31 December 2020;  
• A waiver of penalties is provided for failures to file a tax return or lodge other documents by the due date from 1 April 2020 to 31 December; and
• A VAT exemption is provided on medical supplies to assist the medical sector during the COVID-19 crisis, with related import duties reduced to 0%.