Employer Tax Contributions

Tax Type	Rate	Base
PAYE (Income Tax)	Progressive (varies by income bracket)	Employee's Gross Wages
FNPF (Fiji National Provident Fund)	10% (employer)	Employee's Gross Wages
Fringe Benefits Tax (FBT)	20%	Gross-up value of non-cash benefits
Social Responsibility Tax (SRT)	13% - 19% (progressive)	Chargeable income exceeding FJ$270,000

Filing & Compliance

• PAYE, SRT, and FBT deductions must be remitted to the Fiji Revenue and Customs Service (FRCS) by the last day of the month following deduction.
• FNPF contributions must be remitted by the end of each month.
• Employers must submit monthly Contribution Schedules to FNPF by the 14th of each month.

In Fiji, employee tax deductions, known as Pay As You Earn (PAYE), operate as a final tax system for single-source employment income exceeding FJ$30,000.

PAYE Tax System

PAYE is the primary method of income tax collection in Fiji, deducted at the source from employee salaries and wages. As of January 1, 2013, PAYE became a final tax, eliminating the need for annual tax returns for employees with only one source of employment income. The tax is calculated on chargeable income, which is gross income less any applicable allowances.

Tax Rates and Thresholds

The income tax threshold is FJ$30,000. This means that earnings up to this amount are not taxed. For resident employees earning above the threshold, the tax rates are:

• 18%: For the income bracket applicable as of today. More information can be found on the Fiji Revenue & Customs Service website.
• 20%: For the income bracket applicable as of today. More information can be found on the Fiji Revenue & Customs Service website.

Non-resident employees are taxed at a flat rate of 20% on their chargeable income from the first dollar earned.

Employer Responsibilities

Employers are responsible for deducting the correct PAYE amount from each employee's salary/wage and remitting it to the Fiji Revenue & Customs Service (FRCS) by the end of the month following the deduction. Employers must register with the FRCS within 30 days of starting their business and submit monthly Employer Monthly Schedules (EMS), even if no PAYE was deducted.

Employee Responsibilities: Tax Code Declaration

Employees must file a Tax Code Declaration (TCD) with their employer within five working days of starting employment.

• 'P' TCD is filed if the employment is the employee's primary source of income.
• 'S' TCD is used for secondary employment. If an employee doesn't submit a TCD within five days, the employer must deduct tax at a rate of 20%.

Exemptions and Deductions

Certain incomes are exempt from PAYE tax, including:

• Pension Income: Pensions from approved funds, like the Fiji National Provident Fund (FNPF), are exempt.
• Lump Sum Payments: Lump-sum payments (up to FJ$5,000) for changes in service conditions (excluding redundancy) are exempt under specific conditions.
• Redundancy Payments: Up to FJ$15,000 of redundancy payments is exempt, with the remainder taxed at 15%. This requires prior approval from FRCS.
• Dividends: Dividend income from specified sources, including listed companies and Fijian Holdings Unit Trust, is exempt. Other dividend income is exempt only if already taxed at the corporate level.

Previously available allowances (Marital, Child, Elderly, FNPF contributions) are no longer deductible as of January 1, 2013.

Special Tax Situations

• Multiple Employments: Employees with multiple jobs or additional income sources (like business income) must file a tax return, even if their primary employment income is below the threshold. They should use Form B and attach their employment Tax Withholding Certificate.
• Non-Resident Employees: Non-resident employees are taxed differently and should consult the FRCS or a tax advisor for specific details.
• Salary Increments for Civil Servants: Civil servants receiving salary increments might experience a temporary increase in their tax deductions for the first two pay periods. The payroll system will adjust subsequent deductions to ensure accurate annual tax payment according to their new salary.

Tax Incentives for Employers (as of June 28, 2024)

Several tax incentives are available for employers, including:

• 300% tax deduction: For wages paid for work placements, apprenticeships, and part-time workers (extended until December 31, 2025).
• 400% tax deduction: For wages paid to persons with disabilities (extended until December 31, 2025).

It's important to note that tax laws and regulations are subject to change. For the most up-to-date information, consult the Fiji Revenue & Customs Service or a qualified tax professional.