Taxation Business FAQ’s

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Credit Card Levy
Third Party Insurance Levy

 

Credit Card Levy

What it is?

Credit Card levy at a rate of two percent (2%) of the amount owing on a credit card account maintained at a commercial bank.

With effect from 1 January 2013, the levy is computed on the debit balance that remains unpaid at the end of the due date for payment in a billing cycle.  The amount owing refers to the overdue amount  plus  the bank’s  administrative charges such as fees and interest penalty for late payment.

For the period 1 January 2012 to 31 December 2012, the levy was computed on any amount debited during the month and which remained unpaid at the end of each month, whether overdue or not.

Who is liable to pay the levy?

The Credit Card Levy is imposed on the holder of a bank credit card under Section 7G of the Income Tax Act 1974.

Who is exempted from the levy?

Exemptions will apply to foreign credit card balances for diplomats and non-citizens who are

exempted under the Diplomatic Privileges and Immunities Act. However local credit card

balances for credit cards issued locally, will not be exempted from the levy.

Who is responsible for the collection and payment of the levy? 

The bank shall be liable for the collection and payment of the levy which is due on or before

the 15 days after the last day of each month. The payment should accompany the related return that is due on the same day.

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CONTACT DETAILS

Revenue & Customs Service Complex,
Lot 1 Corner of Queen Elizabeth Drive
& Ratu Sukuna Road,
Nasese,
Suva.
Phone: (+679) 3243000
Fax: (+679) 3315537
Email: info@frcs.org.fj