29 June, 2018, 1:47 pm
Direct tax measures
– The current Residential Interest Withholding Tax threshold (RIWT) is increased from $16,000 to $30,000;
– 150 per cent tax deduction on salaries or wages paid to employees during paternity and family care leave;
– To encourage more ICT activities, the definition of ICT in the Income Tax Regulations will be amended to include “customer service contact centres, engineering and design, research and development, animation and content creation, distance learning, market research, travel services, finance and accounting services, human resource services, legal procedure, compliance and risk services and other administrative services”. These services will need to be ICT enabled;
– To assist the agriculture sector cash flows, all greenhouse and nursery buildings, research labs and pack houses will be included under the Accelerated Depreciation Provision;
– To encourage investment, the minimal capital investment for setting up of Electric Vehicle (EV) charging stations is reduced from $500,000 to $100,000
– To assist the Government in hosting the 2019 ADB annual meeting, there is a 150 per cent tax deduction for cash contribution above $10,000 by corporate sponsors towards the hosting of the event;
– The income tax (medical investment incentives) regulations will be amended to include hospitals under Private Public Partnership (PPP) arrangements to be eligible for the medical tax incentives;
Modernisation of buildings in towns/cities
– For capital investments above $1 million (excluding interior furnishings, furniture and fittings) the following will apply:
– 125 per cent tax deduction on total expenditure incurred for renovation and redevelopment;
– 25 per cent investment allowance on total capital expenditure incurred for extension and redevelopment; and
– The incentive will be available to buildings that are five years or older.
– 250 per cent tax deduction on any expenditure incurred by an eligible company investing in research and development in ICT and renewable energy industries;
– 55 per cent tax deduction on investments in electric buses;
– 150 per cent tax deduction to employers for cost of staff training through accredited training providers;
– Capital Gains Tax and Income Tax exemption for South Pacific Stock Exchange listing — the Income Tax Act will be amended to grant exemption for any gain made by a resident for the sale of any capital asset including shares where the company undergoes listing. The Income Tax (Exempt Income) regulations will be amended to extend the current exemption which is applicable to the income made from the gain from the sale of shares by resident private companies arising from the re-organisation, restructure or amalgamation of a company for the purpose of listing on the SPSE to include any income in addition to gain made. The exemption will be made to public companies.
Tax Administration Act
– Act will be amended to hold tax agents liable for non-compliance;
– Act will be amended to include fraudulent conduct apart from misleading/false statement in relation to taxation offences;
– Act will be amended to increase jurisdiction of Tax Tribunal from $50,000 to $500,000;
– For the offence of failure to file a tax return, the act will be amended to include the words “in the approved form” after the word “due date”;
– Act will be amended to make TIN registration mandatory and failure to comply would be treated as an offence;
– New section to ensure business taxpayer to update their details if there are any changes;
– Act will be amended to strengthen the self assessment regime;
– All businesses and commercial taxpayers will be required to declare their assets along with their income tax returns. They will also have to declare any assets paid for by them even if held in any other name. A penalty of $250,000 will be charged for failure to declare; and
– There will also be a new provision to deal with offences for those who are not supposed to charge Environment Climate and Adaptation Levy (ECAL) or Service Turnover Tax (STT).
– Fiji will be amended to allow the Fiji Revenue and Customs Service CEO to amend or withdraw charges.
Indirect Tax Measures
– Service Turnover Tax will now be charged only by licensed restaurants, bars, clubs, bistros and coffee shops who have a turnover or threshold of $1.25 million or above;
– Environment and Climate Adaptation Levy (ECAL) will now be charged only by licensed restaurants, bars, clubs, bistros and coffee shops who have a turnover or threshold of $1.25 million or above; and
– The levy on plastics bags is now 20 cents.