Indirect taxation is becoming increasingly relevant in the field of taxation. The combination of innovation and digitalisation poses new challenges, and it is becoming increasingly necessary for tax payers to be able to demonstrate that they are in charge of their tax situation and complying with tax legislation.
Whatever your business activity or location, you can rely on our experts to help you manage your indirect tax role efficiently and mitigate risks while staying competitive.
How we help clients
1. Value Added Tax
Value Added Tax (VAT) is a tax on spending that is levied on the supply of goods and services in Fiji at the rate of 9%, with effect from 1 January, 2016. All businesses with a turnover of $100,000 or more are required to register for VAT and lodge return on a yearly basis provided the gross turnover does not exceed $300,000. However, should gross turnover exceed $300,000 then VAT is to be accounted for on a monthly basis.
Read our Introduction to Value Added Tax (VAT)
2. Pay As You Earn (PAYE)
Pay-As-You-Earn (PAYE) is a withholding mechanism through which taxes are collected from employment income. Employers having employees must register with FRCS for PAYE from the date of employment of the first employee. Once registered, employers must submit a withholding summary. All Periodic Summaries must be filed by the last day of the month following the end of the filing period and appropriate payments made to FRCS. PAYE is legislated under the Tax Administration Act 2009.
Read our Introduction to Pay As You Earn (PAYE)
3. Environmental & Climate Adaption Levy
The Environment & Climate Adaptation Levy (ECAL) is a new tax introduced in alignment to Fijis recognition of the importance of safeguarding the environment and the impact the economy has had on Climate Change. It is charged at the rate of 5% on the gross annual turnover of a prescribed service.
Read our Introduction to the Environment & Climate Adaptation Levy (ECAL)
4. Service Turnover Tax
Under the current 2020 – 2021 Government of Fiji budget the tax rate of 6% for Service and Turnover Tax (STT) has been removed to help businesses recover from the impacts of the COVID 19 pandemic. Previously, (STT) was charged at the rate of 6% on all prescribed services. Effective from 1st August 2018, all prescribed service providers whose turnover is $1.25million were required to charge STT on their sale.