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14.3. Calendar of Important Compliance Events

Tax Year

The tax year of Fiji is the calendar year. However, a different 12-month period can be adopted with the prior approval of the tax authorities.

Tax Return Filing

Companies are required to file the tax return within the 3 months from the end of the tax year. However, an extension for the filing of the tax return can be granted up to 6 months, depending on the amount of taxable income.

Taxpayers are required to file capital gains tax returns within one month after the disposal of capital assets except for the disposal of shares listed on the South Pacific Stock Exchange.

As introduced in budget 2018-19, all business and commercial taxpayers are required to declare their assets, including assets paid for by the taxpayer, but held in any other person’s name along with their tax returns in the approved form.

COVID-19 Emergency Measures

In response to the COVID-19 pandemic, Fiji extended the deadline for the lodgment of tax returns until 31 December 2021 for returns due during the months of April to December 2021 and, accordingly, all late lodgment penalties will be waived. This measure is available to all taxpayers affected by COVID-19 movement restrictions, lockdowns, and containment zones.

Tax Payments

Effective 1 August 2020, advance tax payments are required to be made in nine installments (previously in three equal installments) payable by the last day of the sixth, seventh, eighth, ninth, tenth, eleventh, and twelfth months of the tax year and the first and second months of the following tax year. Advance tax is payable at a rate of 11 1/9% on the assessed tax liability for the preceding tax year (including under a self-assessment) as reduced by foreign tax credits allowed for that year and withholding tax for that year.

If: (1) the tax payable for the preceding year has not been assessed by the advance payment due date for the first payment, or (2) the taxpayer began deriving income included in gross income during the tax year, then advance payments are equal to one-ninth of the estimated amount of tax that will be due for the year, other than tax to be withheld.

Advance tax computed on estimates can be modified, including where it is expected that the tax liability for a year will be significantly lower than that of the previous year. However, if the estimates are less than 100% of the actual tax liability for a year, a penalty of 40% of the taxpayer’s advance tax shortfall may be levied, subject to certain exceptions. Such penalties will be waived for a period of 3 years commencing from 1 August 2020.

The Fiji has issued a clarification for the issue of refunds of withholding tax collected on professional services fees. The withholding tax directly paid by non-residents will be refunded through discussions with the respective competent authorities using the Mutual Agreement Procedure (MAP) and the withholding tax paid by Fiji residents on behalf of non-residents will be refunded after verifying documents.

Tax Amnesty

Effective 1 August 2021, tax amnesty is granted to taxpayers with tax arrears, including a waiver of all penalties upon payment of taxes, provided that payment arrangements are made within 3 months from 1 August 2021 and all payments are made before 30 June 2022.

Availability of E-Filing

Companies can file tax returns electronically as per the procedure established by the tax authorities, which is known as ‘Electronic Notice System’.