Tax laws Kiribati
Kiribati's taxation system is administered by the Ministry of Finance and Economic Development (MFED), which oversees fiscal policies, government revenue, and expenditure.
Key Taxes in Kiribati:
Income Tax:
- Corporate Tax Rates: As of the latest available information, the corporate tax rates in Kiribati are as follows:
- Up to AUD 25,000: 20%
- AUD 25,000 to AUD 50,000: 30%
- Above AUD 50,000: 35%
- Non-resident Companies: Subject to a standard rate of 30%.
- Residency Definition: A company is considered a resident in Kiribati if it is incorporated in the country or if its central management and control are exercised within Kiribati. Resident companies are taxed on their worldwide income, while non-resident companies are taxed only on income sourced from Kiribati.
Value-Added Tax (VAT):
- Rate: 12.5% applied to the supply of most goods and services, including imports. citeturn0search6
- Proposed Amendments: The MFED is currently reviewing amendments to the VAT Act to enhance revenue collection and compliance.
Excise Tax:
- Scope: Imposed on specific goods manufactured in or imported into Kiribati. citeturn0search2
- Administration: The MFED oversees the administration and enforcement of excise tax regulations.
Other Taxes:
- Non-Resident Taxes: Kiribati does not have specific Controlled Foreign Corporation (CFC) rules; however, there are provisions under the Tax Haven rules that may apply.
- Business Taxes: Businesses are subject to various taxes, including profit tax and labor tax contributions. The total tax rate, encompassing all taxes, averages around 32.7% of profit.
Recent Developments:
Income Tax Act 1990: The Kiribati Income Tax Act of 1990 outlines the framework for income taxation in the country. While some provisions may have been amended, the Act serves as the foundational legislation for income tax matters.
Excise Tax Act 2013: The Excise Tax Act of 2013 provides for the imposition of excise tax on specific goods manufactured or imported into Kiribati. This Act aims to regulate and control the production and importation of excisable goods.
Tax Administration:
The MFED is responsible for developing fiscal and economic policies, managing government investments, and overseeing taxation, including customs and exchange control. It also handles government statistics and national censuses.
Note: Tax laws and regulations are subject to change. For the most current information, it is advisable to consult the MFED's official publications or seek professional tax advice.
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