With decades of experience working with investors from around the globe, our firm is adept at providing bespoke strategies, tailored to address the nuances of foreign investment in Fiji, which includes resort acquisition and development (including integrated residential developments), real estate acquisition, private investment portfolio’s, resource development, construction and infrastructure, land development, subdivisions and strata titles.
Whether you are considering investing or are already committed and looking for a trusted law firm to help you achieve your business objectives in Fiji, Jamnadas & Associates are here to help you meet your goals and ensure your success in Fiji.
About Fiji
Fiji consists of an archipelago of more than 330 islands amounting to a total land area of approximately 18,300 square kilometres (7,100 square miles), although its exclusive economic zone (EEZ) is substantially larger at around 1,290,000 square kilometres. Fiji is considered the centre of trade in the South Pacific and a hub for communications and transport routes.
Fiji is a multicultural country with a population of over 900,000 people and boasts a literacy rate of over 90%. English, Fijian (i’Taukei) and Fiji-Hindi are the country’s official languages, with English being the main language used for commerce, government departments and our court systems.
Dealing with
Land in Fiji
Land in Fiji is divided into three categories, being Freehold (privately owned), State Lease (owned by the State and leased to the public) and Native/i’Taukei Lease (owned by indigenous landholding units but administered by the i’Taukei Land Trust Board and leased to the public).
Non-residents (defined as anyone who is not a Citizen of Fiji) require the prior consent of the Minister of Lands in certain circumstances before dealing in Freehold and State Lease land. When dealing with I’Taukei land, both residents and non-residents require the consent of the i’Taukei Land Trust Board.
Under the Land Sales Act, non-residents are unable to purchase freehold or State lease land for residential purposes within the boundaries of a town or city. These restrictions do not apply to:
- Land sold leased or transferred to an immediate family member who is a non-resident.
- Land given, devised or bequeathed to a non-resident under the Succession, Probate and Administration Act 1970.
- Land which is classified for industrial or commercial use.
- Unit or strata title (e.g. Apartments).
- Residential land which is integrated into tourism development.
- Residential land which is not within the boundaries of a town or city.
- The operation of a hotel licenced under the Hotels and Guest Houses Act 1973.
Where vacant land is purchased by a non-resident anywhere in Fiji, the non-resident must build a substantial residential dwelling to a value of F$250,000 or more within 5 years of purchase, although an extension can be applied for.
Foreign Investment in Fiji
Direct Foreign investment in Fiji is regulated by the Investment Act 2021 along with the Investment (Reserved And Restricted Activities) Regulations 2022 and the Investment (Foreign Investors Reporting) Regulations.
Minimum Investment Amounts
Direct Foreign investment in Fiji is regulated by the Investment Act 2021 along with the Investment (Reserved And Restricted Activities) Regulations 2022 and the Investment (Foreign Investors Reporting) Regulations.
| Fiji Standard Industrial Classification (FSIC) 2010 Coding | Activity | Minimum Investment Threshold (FJD) | Conditions and exemptions | |
|---|---|---|---|---|
| 1 | Group 451; 452; 453; 454; 471; 472; 473; 474; 475; 476; 477; 478; 479 | Retail Business | $500,000 | |
| 2 | N/A | Nightclub, other than those operated within the vicinity of a hotel or resort | $500,000 | |
| 3 | N/A | Liquor bar, other than those operated within the vicinity of a hotel or resort | $500,000 | |
| 4 | Subclass 02201 | Logging | $500,000 | Foreign investor must undertake value adding |
| 5 | Group 031 | Fishing (not including fish processing) | $1,500,000 | |
| 6 | Subclass 12001 | Manufacturing of tobacco products | $1,000,000 | Foreign investor must use at least 75% locally grown and processed tobacco in all domestic cigarette production |
| 7 | Subclass 55101 | Homestay and backpackers — motels, motor hotels, guesthouses, bed and breakfast units, visitor flats and bungalows, holiday homes, chalets, housekeeping cottages and cabins, youth hostels and mountain refuges | $1,000,000 | Development or purchase of individual units relative to timeshare, holiday homes, villas and apartments are exempt from the minimum investment threshold of $1,000,000 |
| 8 | Subclass 55101 | Hotels or resorts, Suite/apartment hotels, Time-share units | $2,000,000 | Development or purchase of individual units relative to timeshare, holiday homes, villas and apartments are exempt from the minimum investment threshold of $2,000,000 |
| 9 | Subclass 68101 & 68201 | Real estate activities, excluding real estate agents | $2,000,000 |
Minimum investment thresholds are required to be brought into Fiji within 3 months from the investors date of incorporation, and foreign investors engaging in restricted activities to provide a progress report on the remittance of the total investment amount within 1 year. subject to any extensions or exemptions which may granted by the Minister for
Taxation And Other Contributions
Corporate Tax:
Fiji currently has a corporate tax rate of 25% for both resident and non-resident companies, with companies listed on the South Pacific Stock exchange being subject to a 15% tax rate.
Fringe Benefit Tax (FBT):
FBT is levied at the rate of 20% on the fringe benefit taxable amount (non-cash benefits) of the employer for each quarter. There are currently 9 broad categories of fringe benefits.
Capital Gains Tax (CGT):
CGT is a tax that is levied on profits or gains realized on the disposal of capital assets, at the rate of 10%. For non-residents the tax only applies on gains arising from disposal of taxable assets that are Fiji assets.
The following are the capital assets that attract CGT upon disposal (subject to exemption and deferral provisions, as provided for in the Income Tax Act 2015):
- Real property, structural improvement or an interest in real property
- Lease of real property
- Yachts, Ships and Boats
- A membership interest in a company, security or other financial asset
- Intangible assets e.g. goodwill
- An interest in a partnership or trust
- An airplane, helicopter or other aircraft
- An option, right or other interest in an asset (not including trading stock, or a business intangible).
Personal Tax:
Resident Individual taxation rates from 2023 are as follows:
| Chargeable Income ($) | Income Tax ($) |
|---|---|
| 50,001 – 270,000 | $3,600 + 20% of excess over $50,000 |
| 270,001-300,000 | $47,600 + 33% of excess over $270,000 |
| 300,001-350,000 | $57,500 + 34% of excess over $300,000 |
| 350,001- 400,000 | $74,500 + 35% of excess over $350,000 |
| 400,001- 450,000 | $92,000 + 36% of excess over $400,000 |
| 450,001- 500,000 | $110,000 + 37% of excess over $450,000 |
| 500,001 – 1,000,000 | $128,500 + 38% of excess over $500,000 |
| 1,000,001 + | $318,500 + 39% of excess over $1,000,000 |
Non-Resident individual tax rates are as follows:
| Chargeable Income ($) | Income Tax ($) |
|---|---|
| 0 – 30,000 | 20% of excess over $0 |
| 30,000 – 50,000 | $6,000 + 20% of excess over $30,000 |
| 50,001 – 270,000 | $10,000 + 20% of excess over $50,000 |
| 270,001-300,000 | $54,000 + 33% of excess over $270,000 |
| 300,001-350,000 | $63,900 + 34% of excess over $300,000 |
| 350,001-400,000 | $80,900 + 35% of excess over $350,000 |
| 400,001-450,000 | $98,400 + 36% of excess over $400,000 |
| 450,001-500,000 | $116,400 + 37% of excess over $450,000 |
| 500,001-1,000,000 | $134,900 + 38% of excess over $500,000 |
| 1,000,001 + | $324,900 + 39% of excess over $1,000,000 |
Value Added Tax (VAT)
Value Added Tax (VAT) is a tax on spending that is levied on the supply of goods and services in Fiji at rates of 0% and 15%. The Value Added Tax Act requires most businesses and organisations involved in taxable activities in Fiji to register for VAT, charge and collect VAT applicable to the range of goods and services they supply and submit VAT returns and pay the VAT collected to the Fiji Revenue and Customs Service online, when due.
Water Resource Tax:
This applies to businesses involved in the extraction of water in its natural state for sale. From 1st August 2023, the following rates apply:
| Litres Extracted per Month | Cents per Litre |
|---|---|
| 0 to 9,999,999 | 1 |
| 10,000,000 and above | 19.5 |
As was announced in the 2023-2024 budget, the income of entities involved in the extraction and bottling of water are exempt from Income Tax for 7 years. This applies to existing and new businesses.
Double Taxation Agreements:
Fiji has entered into agreements for the avoidance of double tax with the following countries:
Qatar
India
Australia
New Zealand
Papua New Guinea
Japan
Korea
Malaysia
Singapore
United Arab Emirates
United Kingdom
Contributions to the Fiji National Provident Fund (FNPF):
The FNPF is a compulsory superannuation scheme for local employees. Under the FNPF Act, employers and employees are required to contribute 10% and 8%, respectively, of cash emoluments of employees to the Fund.
Employers are not required to contribute to the FNPF for expatriate employees. However, expatriates and their employers may elect to do so subject to certain conditions.
Fiji National University (FNU) Levy:
The FNU levy is is a Government Training Tax Scheme administered by the Fiji National University calculated at 1% of the Total Gross Emoluments (this includes Wages & Salaries, Directors Fees, Casual Wages, Expatriates/Consultant Fees and Other Cash benefits) payment of which is split into two payments each year. Registration comes from a business’s FNPF registration
Investment incentives:
The FNU levy is is a Government Training Tax Scheme administered by the Fiji National University calculated at 1% of the Total Gross Emoluments (this includes Wages & Salaries, Directors Fees, Casual Wages, Expatriates/Consultant Fees and Other Cash benefits) payment of which is split into two payments each year. Registration comes from a business’s FNPF registration