FRCS Reviews Requirements for Tax Clearance
The Fiji Revenue and Customs Service (FRCS), in consultation with the Reserve Bank of Fiji (RBF), has increased the financial limit for obtaining tax clearance from FJ$10,000 to FJ$20,000 effective from 6th October 2023. This excludes payment for services of any amount. Individuals and businesses will not require Tax Clearance Certificate (TCC) for remittances (except for service payments) that are valued at less than FJ$20,000.
FRCS Acting Chief Executive Officer, Mr. Malakai Naiyaga attributed the increased financial limit of FJ$20,000 as a positive initiative that will really benefit banks, businesses, and individuals as it will significantly reduce the number of small transactions requiring TCC.
According to Mr. Naiyaga, this transition will also improve efficiency and ease of doing business in Fiji. The following are exempt from tax clearance:
1. Education funds paid to educational institutions for student’s fees.
2. Payments made for medical bills.
3. Import payments:
• Goods already landed and cleared by FRCS (inclusive of freight and insurance for shipment).
• Prepayment of term bills for goods already landed and cleared by FRCS.
• 3rd Party payments for goods landed and cleared by FRCS.
4. Merchanted goods – payments of goods which are facilitated via Fiji for other Pacific Island countries.
5. Payments for imports of fuel/oil and lubricants.
“We wish to inform our customers that we will continue to work closely with other agencies in the review of our operational policies and practices to bring in more efficiency and improvements in our service delivery as per our strategic objective,” Mr. Naiyaga said.