PAYE became a Final Withholding Tax on the 1st January 2013. thus there will be very minimal Form S returns lodged. This is a new system where the correct amount of tax (PAYE final tax) is deducted from your salary/wages.
Any tax overpaid will be refunded and any tax short paid will be recovered from you through the issuance of Commissioner’s assessment, commonly known as Notice of Assessment.
Commissioner’s assessment will be sent to all individuals.
An employee who also receives income from business or share of estate/ partnership must lodge a business return (Form B) with Tax Withholding Certificate attached.
What is the income tax threshold?
The income tax threshold for resident individuals as of 1 January, 2013 is FJ$16,000.
Previous years income tax threshold:
If your employment income is above FJ$16,000, a salary wage earner return is not required to lodge their return unless employee:
- has 2 or more employments during a year and total income received is above $16,000.00;
- receives a demand notice from the Commissioner to lodge a return
Normal tax is levied on Chargeable income ( i.e. Total income less deductions). There will not be any claims for allowances such as Marital, Child, Elderly and FNPF from 2013.
What incomes are taxed?
There are three main categories of incomes of individuals, namely:
Income from employment
For taxpayers that receive income from employment, their total income will include income from emoluments. This includes:
All employment income is subject to PAYE Final Tax; however, some payments are exempt from tax. Special provisions for exemptions are available in the Income Tax Revised up to 13th March 2014; Act No.5 of 2014 An Act to Amend the Income Tax Act (Cap 201)
An employee who also receives income from business or share of estate/ partnership must lodge a business return, with Tax Withholding Certificate attached
Income from property
This includes the following:
Income from business/investments
This includes the following:
Residents & non-residents
A person is regarded as a resident if his/her permanent home or place of residence is in Fiji. If a person is not normally a resident in Fiji , he/she may be regarded as a resident if he/she has actually been in Fiji , continuously or regularly during more than one-half of the income year. He/she must satisfy the Chief Executive Officer that he/she will take up residency in Fiji.
Residents are taxed on their worldwide income (all sources) . A resident individual for income tax purposes is a person (other than a company) who resides in Fiji , is domiciled in Fiji or has been in Fiji for more than half of the income year
Non-residents are taxed only on their income derived or earned in Fiji.
An individual, who is a medical doctor, is granted leave by his employer to work in Australia for 2 years. He does not derive any income in Fiji during that period.
Since he is only working temporarily in Australia, he is still a Fiji resident for tax purposes, therefore is required to lodge returns for the income received in Australia. That income is taxable in Fiji and he will be allowed a credit for the tax paid in Australia.
Relief from Double Taxation
Double taxation of residents is avoided by allowing credits for foreign tax paid on income derived from countries with which Fiji has tax treaties. Fiji allows unilateral relief from double tax on income from non-treaty counties, provided the income has been subject to tax in that other country.
Fiji has entered into agreements for the avoidance of double tax with the following countries: , , , , , , , ,
Who should lodge an income tax return?
Once your return is received, it becomes the property of the Authority and as such, the Authority is obligated under the secrecy provisions of the FRCS Act – Revised 29 Jan 2010 to refrain from revealing to any person any documents or information without lawful excuse. This prohibition would include the making of copies of returns when requested by the taxpayer.
The form can be hand delivered to any of our Customer Service Centers or sent by post. You do not need to buy a stamp for the envelope, as correspondence addressed to the Chief Executive Officer will be carried by Post Fiji free of charge.
When do I lodge a tax return?
You must lodge your Form S for the immediate preceding year by 31 March each year.
|Year Ending||Due Date for Lodgement|
|31 December 2014||31 March 2015|
|31 December 2013||31 March 2014|
|31 December 2012||31 March 2013|
What penalties apply for failing to lodge your tax return by the due dates?
If you lodge your return late, you will be charged Late Lodgement Penalty of 20% on the amount outstanding on the return. An additional 5% penalty will apply for each month of default on the amount of unpaid tax.
What offences apply for not lodging your tax return?
If you do not lodge your return at all, then this will be regarded as an offence. The penalties upon conviction are:
What documentary evidences do I need to submit with my Income tax return?
The Salary & Wage Earner Return (Form S) should be lodged together with the following documentary evidences:
|1||Tax withholding certificate only for those salary/wage earners that are required to lodge their returns.|
|2||Tax Withholding Certificate for migrating taxpayers|
|3||Original dividend certificate if earning any form of dividends during the year.|
What records do I need to keep?
Individual taxpayers should always maintain a copy of their yearly tax return lodged with FRCS together with all relevant details. All correspondences to and from FRCS is also to be filed for your own record.
This will enable you to compare your computation of the tax payable or refund due when you receive your notice of assessment. Once your return is received, it becomes the property of the Authority and as such, the Authority is obligated under the secrecy provisions of the FRCS Act to refrain from revealing to any person any documents or information without lawful excuse. This prohibition would include the making of copies of returns when requested by the taxpayer.
Every taxpayer must retain such accounts, documents and records for a period of not less than 7 years after the end of the tax period to which they relate. Refer to Tax Administration Decree Revised 6th February 2013; Act No.3 of 2014 An Act to Amend the Tax Administration Decree 2009
How do I calculate the final tax payable/refund amount?
How will I be notified of the Commissioner’s assessment?
You will be notified of the commissioner’s assessment commonly known as Notice of Assessment, which will be posted to your last known postal address.
Can I request for an amendment to my income tax return?
A request for an amendment to your income tax return is only allowed if it is lodged with FRCS within six (6) years from the end of year of assessment. A refund will only be made if it relates to an amendment for any of the three years immediately preceding the 2011 Income Tax Assessment.
Can I lodge an Objection to my Income Tax Assessment?
An objection to an Income Tax Assessment will only be dealt with by the Authority if it is lodged within sixty (60) consecutive days from the date of service of the Notice of Assessment.
Click on the link for more information Amendment & Correspondence Control Unit (ACCU)
Direct Deposit of Refunds
From 2010 there has been no more issuance of refund cheques. All refunds are now deposited into your respective bank accounts.Individuals are to advise their bank account numbers for deposits of their over payments upon receipt of commissioner’s assessment. Ensure that the bank account number must belong to the taxpayer whose refund is to be released.
When and how should I pay my tax?
Any tax payable amount should be settled within thirty (30) days from the date of issue of Commissioner’s Assessment. Should you fail to settle within the due date your case will be referred to our Debt Management Service for recovery purposes.
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