The Fiji Government actively promotes the development of the tourism infrastructure in Fiji and has special tax concessions. To also encourage investment in Fiji, the Fiji Government has set up the Fiji Islands Trade and Investment Bureau to assist investors with information and promote all the benefits of investing in Fiji.

Tourism Related Investment Tax Concessions and other Tax Considerations

1. Accelerated Depreciation. Projects for approved hotel buildings or expansion may be entitled under the Hotels Aid Act to receive an Investment Allowance of 55 per cent of the cost to offset against chargeable income.

2. Double Taxation Agreement. As an additional inducement, Fiji has negotiated a double taxation agreement with New Zealand, Australia, Japan and United Kingdom under which exemptions or tax concessions granted by the Fiji Government are not negated by an imposition of tax in the country of residence of the investor. The contracting State(s) under the agreement would deem that tax has been paid and accordingly grant relief to the investor in respect of income flowing to him. - Please seek the advice of your accountant as to how this Double Taxation Agreement in combination with "2. Accelerated Depreciation" can benefit you.

3. No Taxation for Non-Residents on Profit on Sale of Investment Land. Non-residents will no longer be taxed on profits from the sale of land, which was acquired purely for investment purpose. They will, however be subject to tax if engaged in the business of buying and selling land (i.e. in the same way residents are now taxed).

4. Tourism Related Investments: Exemption of hotel developer profits (from the sub-division and subsequent sale of land) up to 31 December 2005.

5. No Withholding Tax on Dividends: No withholding tax is payable on dividends provided these are distributed to the shareholders after a company’s profits are fully taxed at corporate level.

6. Investment Allowances: A business entity or taxpayer may claim as a deduction investment allowance of 40% on the purchase of capital assets of not less than $50,000 per annum. The capital assets will not include land, buildings, passenger motor vehicle or trading stock. Such investment allowance can be claimed until 2005 (inclusive) for the expenditures incurred during this period. Should you have borrowed in your country of residence to purchase, then all the interest payments should be tax deductible.