FIJI now offers one of the lowest corporate tax rates in the region at 17 per cent for foreign companies that establish or relocate their headquarters to Fiji.
This was part of the 2013 National Budget revenue policies announced by the Prime Minister and Minister for Finance Commodore Voreqe Bainimarama yesterday.
Commodore Bainimarama also announced the reduction of corporate tax rate for newly listed companies on the South Pacific Stock Exchange (SPSE) from 20 per cent to 18.5 per cent.
However, the condition was that the company must have 40 per cent local shareholding structure.
To encourage new investment, Eastern Viti Levu or from Korovou to Tavua has been declared a tax free region. The benefits of investing in this region include a tax holiday for 13 years, tax holiday for 20 years if investing in the dairy industry.
Companies investing in the dairy industry will also enjoy import duty exemption on the importation of raw materials, machinery and equipment (including parts and materials) purchased for the establishment of the business for 12 months from the date of approval.
However, companies have to be newly incorporated with a minimum investment of $1million.
The government has also retained the export income deduction at 40 per cent to promote growth in the export sector.
To promote employment creation, the Employment Taxation Scheme, which allows 150 per cent tax deduction will be extended to 2014.
Tax deductions have also been allowed for the donation of computers to schools. Those who donate new personal computers, laptops and tablets will enjoy a 200 per cent deduction if it is to schools in rural areas.