I don’t have a Tax Identification Number (TIN) and would like to know of the requirements for registration. I’ve just started working with a company as a sales rep and would be earning FJ$15,600 per annum.
You will have to fill a TIN application form (IRS001) / FNPF/FRCS Joint ID Card form.
Effective from 01st January 2013 is the PAYE Final T
ax, therefore you will not need to lodge an income tax return unless:
- you have 2 or more employments during a year and total income received is above $16,000.00
- Where an employee receives a demand notice from the Commissioner to lodge a return
However, if the company engages your services on a contractual basis then you should be registered as a provisional taxpayer. The company is then obliged to deduct 15% provisional tax.
The completed form can be lodged at any of our Customer Service Centres and you will be issued with a FNPF/FRCS Joint ID card after your application is processed.
What are FRCS’s requirements for Ticket Lottery registration?
The requirements for registration are:
- A copy of the approval from the District Officer’s Office
- Completed form for ticket lottery registration (Form IRS007)
The expected gross sales and contract/agreement with the performing artist needs to be submitted. Registration and return should be done on Form IRS214.
Where should I send my form?
For income tax purposes:
- drop it at any Customer Service Centre (CSC).
- you can send it through the post, certified copies of proof of identity documents need to be provided.
For VAT purposes:
- At the Customer Service Centre nearest you, so that a site inspection can be done.
How soon will I receive my TIN or FNPF/FRCS Joint ID card?
Your TIN or Joint FNPF/FRCS ID Card could be issued instantly if you lodge your application with all requirements at one of our Customer Service Centres.
When can Income Tax & VAT registration be cancelled?
- when a person will not be deriving any more income in Fiji or abroad (e.g. migration, death, final retirement, cessation of business).
- when the level of taxable supplies excluding exempt supplies in a year is below the turnover threshold of FJ$100,000 for goods and/or services and the person has been registered for at least twelve (12) months may apply for de-registration.
- a produce supplier and any person that has registered in error (e.g. exempt supplier) can apply for de-registration at any time.
Upon cessation of business and where all assets retained have been accounted for in the last return and/or a final audit is completed. A formal de-registration letter will be issued once the Chief Executive Officer is satisfied that all tax matters have been finalised.
Are the allowances of local staff of overseas missions (e.g. UN Missions) subject to tax?
These allowances, which are additional to the normal pay and allowances to which such member would be entitled if serving in Fiji, shall be chargeable to normal tax regardless of derivation.
I am employed by a British security firm and currently based in Iraq. Am I required to pay FRCS the tax on income derived in Iraq?
Income derived by security personnel employed by overseas security firms, after accounting for allowances, shall be subject to tax. It is the responsibility of the security personnel and not the overseas security firm to account for the tax to FRCS unless otherwise specified in the contract.
If the tax is already deducted abroad, a tax credit will be allowed by FRCS upon submission of the documentary evidence.
I am a resident individual. Will I be taxed on dividends received from Unit Trust of Fiji?
Dividends received from the following parties are fully exempt in the hands of the recipient:
- Unit Trust of Fiji
- All Companies listed on the South Pacific Stock Exchange
Dividend Income received from parties other than those listed above is fully exempt only if already taxed at corporate level. Otherwise, a determination will be made by the Chief Executive Officer on the amount to be taxed further in the hand of the recipient. If you have returned income from dividends, and are entitled to a deduction for that dividend income, you are to attach to your tax return, the original copy of your dividend certificate as evidence.
I have five children and the eldest is 18 years old and still attending school. How much am I entitled to claim for child allowances?
From 1st January 2013, these allowances are no longer claimable due to PAYE being Final Tax. However prior to 2013, the allowances claimable in the following manner:
|Dependent Child||NIL||$500 first 2; $300 next 3||$500 first 2; $300 next 3|
Also, there will not be any claims for allowances such as Marital, Child, Elderly and FNPF from 2013.
- How long does it take to process income tax returns?
PAYE final tax was implemented on 1/1/13, therefore there would be very minimal Form S returns lodged. Commissioner’s assessments will be sent to individuals once all EMSs have been lodged and reconciled with PAYE
- I still haven’t lodged my salary & wage earner return for 2012 and prior years and I am expecting a tax refund. Will FRCS release the refund once my return is processed? FRCS will only release refunds within three (3) years from the end of year of assessment. However, the refund will not be released if you have any outstanding tax matters.If no claim is made within three (3) years from the end of year of assessment, the refund is forfeited. Effective from 1/1/2013 individuals will not need to lodge a return as Commissioner’s assessment
will be issued to those whose PAYE has been over under deducted
- How do you deal with the case where a taxpayer dies and the spouse wishes to claim for the taxpayer’s tax refund?
The spouse will have to submit a covering letter, probate statement, the death, marriage and birth certificates once Commissioner’s assessment is received.
- What usually holds up the processing of income tax returns for taxpayers who receive redundancy packages?
At times taxpayers and employers do not give the full details on the redundancy package which only delays the assessment and processing of the taxpayer’s return. Redundancy payments are tax-free up to FJ$15,000 and subject to a tax rate of 15% on the balance over FJ$15,000. The payments have to be declared by the taxpayer in his or her income tax return.
To allow FRCS to process the tax return of an employee receiving a redundancy package, the employer has to provide the following details:
- nature of the payment.
- names of the recipients and other relevant details such as age, date of appointment, number of years’ service, etc.
- correspondence(s) leading up to the decision to make the payment.
- computation of final salary including the lump sum payment for each employee.
- Can any of my refunds be offset against my personal tax liabilities?
Yes, your VAT and Income Tax refunds can be offset against your VAT and income tax liabilities and vice versa.
- What is the due date for payment of VAT & income tax?
VAT – The VAT payment is due on the same date the VAT return lodgement is due. For example where a person is required to lodge on a monthly basis, the payment is due with the return on a monthly basis. Where a person is required to lodge on a three monthly basis, then the payment is due when the three monthly return is due.
Income Tax – The income tax payment is due within one (1) month from the date of Notice of Assessment.
- What is a Time-To-Pay (TTP) arrangement?
A Time-To-Pay arrangement is an arrangement where the taxpayer requests to make instalment payments to FRCS, when they cannot make the full payment due to financial constraints. This only applies for income tax debts. Our Debt Management Service (DMS) is the only Section that handles TTP arrangements. Arrangements are done on a case by case basis subject to certain requirements.
- What are the requirements that a taxpayer should meet to qualify for TTP?
put forward a proposal for payment of their debt in full within six (6) months or the shortest possible timeframe.
- taxpayer has put down reasons as to why he/she cannot pay the debt in full amount.
- forward a payment (1/2 of the amount owing or in discretionary cases, whatever amount the taxpayer can pay provided evidence is submitted) at the time of the proposal to demonstrate a commitment to pay.
- all outstanding returns have to be lodged prior to TTP arrangements.
- Am I entitled to a reduction or full waiver of penalties?
Only the late payment penalties (LPP) can be reduced or fully waived unless & until the real tax is paid up front at the Chief Executive Officer’s discretion. In certain cases full penalties have to be paid if the Chief Executive Officer so decides.
- Can the Chief Executive Officer recover tax debts from third parties owing money to or holding money for the taxpayer?
Chief Executive Officer has the power to garnishee these individuals’ bank accounts and/or rental income. Garnishee is the procedure whereby the Chief Executive Officer attaches debts due or accruing to the taxpayer from a third party (the garnishee) in order to satisfy the debt.
- What is the difference between Provisional Tax and Withholding Tax and when should these be deducted and paid?
Provisional Tax: Under the terms of Legal Notice No. 70 of 1976, where a payment arises under any contract for services, including progress payments under a contract, the payer is required to withhold 15% of the payment and remit the amount to FRCS within thirty (30) days after the end of the month in which the deduction was made.
Any such deduction will be allowed as a credit against any tax assessed on the payee. Legal Notice No. 70 facilitates the payment of provisional tax payable by taxpayers, who are in receipt of commission income or income from the performance of contracts for services, by means of deductions at source from gross payments due to them from such commissions or contract payments.
Withholding tax: It is tax deducted for income such as dividend, interest, royalty that is received by a taxpayer whether a resident or non-resident. It also applies to payments received for the hire or rent of films or the use whether by way of purchase or long-term hire.
- Current Withholding tax rates
- I plan to migrate overseas and will continue to derive interest income from my term deposits with a local bank. Where do I declare this income?
From 1st January 2013, Resident Interest Withholding tax has also become final tax. This means that the gross amount of any interest income paid or credited to resident individuals by a financial institution in Fiji will be taxed at a fixed rate of 20%. The tax applies on any interest above $200.00 Section 17(72)of the Income Tax Act. Where Resident Interest Withholding Tax is their only source of income, bank account holders do not have to lodge income tax return in 2014 and subsequent years as banks should have deducted the correct amount of tax from interest income. However if the RIWT has been overdeducted, the taxpayer may lodge a NRIWT/RIWT Refund Form.
- What is the due date for lodgement of income tax returns?
Effective from 1st January 2013, majority of employees will not be required to lodge income tax return (Form S) and subsequent years as employers must have deducted correct PAYE from employment income taking into account Employee’s Tax Code Declaration.Commissioner’s assessments will be issued to those taxpayers whose PAYE
have beenover deducted or under deducted
- I haven’t been lodging income tax returns for 2012 and past three years as my employer hasn’t been issuing me with an Employee Certificate. Am I obliged to lodge these returns and liable to pay any tax dues?
Yes, you still have to lodge your outstanding returns. The Authority can investigate your employer to find out why you have not been issued with an Employee Certificate and find out whether they have or have not deducted any tax. You may also contact your Human Resources/Finance Section to get a summary of your pay details for those particular years.
With effect from 1st January 2013, The employer is obliged under the Income Tax Act; in particular the Income Tax (Withholding) Regulations 2013 to deduct and remit the PAYE tax and Employer Mo nthly Su mmaries (EMS) and to issue you with an employee withholding tax certificate by the end of February of the following year . The employer can be penalized for failing to follow these regulations.
Every person from whose emoluments any amount shall be deducted pursuant to the Employments Regulations shall, upon the amount being so deducted, be deemed to have paid the same and shall thereupon cease to be liable for payment of tax to the extent of the amount so deducted.
How do I ensure that my employer deducts the right amount of tax every pay? I usually end up paying more tax after I receive myNotice of
Assessment. PAYE final tax was implemented on 01/01/2013 therefore you should not get a refund nor a tax payable.
It is recommended that you complete an Employee Declaration Form (IRS458) and file it with your employer. This will ensure correct deduction of PAYE tax. You may also verify with your employer the correct amount of tax has been deducted from your pay.