Samoa

In Samoa, employers have various tax obligations, including registering for PAYE tax, withholding and remitting PAYE tax for employees earning above the threshold, and filing monthly returns.

Employer Obligations in Samoa

• PAYE Tax Registration: All employers in Samoa must register for Pay As You Earn (PAYE) tax, regardless of their employees' salaries. This registration is free and requires completion of the IR11 Registration Form.
• PAYE Tax Withholding and Remittance: Employers are responsible for withholding PAYE tax from employees whose fortnightly earnings exceed SAT$576. This tax should be remitted to the Inland Revenue Services. If an employee's fortnightly income is SAT$576 or less, no tax is withheld, but the employer is still obligated to file a monthly return.
• Monthly PAYE Returns (P4 Form): Employers must file monthly PAYE tax returns using the P4 form, regardless of whether any tax was withheld. These returns are due by the 15th of the following month. For example, January's PAYE tax and return are due by February 15th.
• National Provident Fund (NPF) Contributions: Employers contribute 10% of the employee's salary to the NPF.
• Value Added Goods and Services Tax (VAGST): If a business's annual turnover exceeds SAT$130,000, they must register for VAGST, charge 15% VAGST on applicable goods and services, and file bi-monthly VAGST returns by the 21st of the following month.
• Business License and Income Tax: All businesses operating in Samoa, regardless of turnover, need a valid business license and must register for income tax, filing an annual income tax return within three months of the tax year's end (typically March 31st).
• Provisional Tax: Businesses liable for income tax must also pay provisional tax installments by March 31st, July 31st, and October 31st of the tax year.
• Record Keeping: Businesses must maintain records for at least seven years.

Employee Obligations in Samoa

• National Provident Fund (NPF) Contributions: Employees contribute 10% of their salary to the NPF.
• Income Tax: Employees earning below WST 15,000 annually are exempt from income tax. Those earning between WST 15,001 and WST 25,000 are taxed at 20%, while those earning above WST 25,001 are taxed at 27%.

Payroll Cycle and Minimum Wage in Samoa

• Payroll Cycle: Employees are typically paid monthly.
• Minimum Wage: The minimum wage is WST 3.00 per hour.
• Overtime: Overtime (hours exceeding 40 per week) is paid at 150% of the regular rate on weekdays and Saturdays, and 200% on Sundays and public holidays.

Leaves in Samoa

• Annual Leave: 10 days (mandatory).
• Sick Leave: 10 days (mandatory).
• Maternity Leave: 6 weeks (mandatory).

Additional Information

• There is no mandatory 13th-month pay in Samoa. Additional employee benefits are subject to employer discretion.

It's important to consult with a tax advisor for personalized guidance on Samoa's tax regulations. This information is current as of February 5, 2025, and may be subject to change.

In Samoa, employers deduct Pay As You Earn (PAYE) tax from employee salaries exceeding a specified threshold.

PAYE Tax

PAYE is deducted from employee salaries and wages. If an employee's income is below the non-taxable threshold, no PAYE is deducted, but employers must still register and file monthly P4 returns. These returns reconcile with salary and wage expenses claimed on the annual income tax return. The current PAYE threshold is SAT$576 per fortnight. This is a final tax, and employees don't file a separate tax return for this income.

Employer Obligations

Employers must register for PAYE, deduct and remit PAYE for employees exceeding the threshold, and file monthly P4 returns even if no PAYE was deducted. Annual income tax returns are due within three months of the tax year's end. Most businesses follow the statutory tax year (January - December), meaning the return is due by March 31st. Other tax years require prior approval. Records must be kept for seven years.

Other Taxes

While not directly deducted from employee salaries, other relevant taxes exist. These include Withholding Tax (WHT) on payments to contractors (10% for residents, 15% for non-residents) and a 15% Value Added Goods and Services Tax (VAGST) on most goods and services. Corporate Income Tax is 27%.

Income Tax Returns & Provisional Tax

Businesses and individuals operating in Samoa must register and file annual income tax returns. Partnerships file a partnership return, and each partner files a separate individual return reflecting their share of income and deductions. Provisional tax payments are due on March 31st, July 31st, and October 31st of the tax year for those liable for income tax.

Exemptions

Certain employees are exempt from PAYE, including non-citizens holding official positions in foreign governments or international organizations as outlined in the Diplomatic Privileges and Immunities Act 1978.

Please note that this information is current as of February 5, 2025, and may be subject to change. It is essential to refer to official government resources for the latest details and specific requirements.

In Samoa, the Value Added Goods and Services Tax (VAGST) is a consumption tax levied on most goods and services.

VAGST Overview

The standard VAGST rate is 15%. A 0% rate applies to exports and certain exempt goods and services. The annual turnover threshold for VAGST registration is SAT$130,000. Businesses exceeding this threshold must register for VAGST. Primary production is subject to VAGST unless below the threshold. "Supply" includes online and imported services.

Filing and Payment

VAGST returns are filed bi-monthly, within 15 working days after the end of the GST period. Payment is due on the same date as the filing deadline. For imports, VAGST is payable at the time of import.

Exempt and Zero-Rated Supplies

Exempt supplies include certain basic foodstuffs and medical supplies. Zero-rated supplies include exports, duty-free goods, goods not present in Samoa at the time of supply, and educational services by approved institutions.

Additional Tax Obligations

• Income Tax: Businesses must file annual income tax returns within three months of the tax year's end (typically December 31st). The corporate tax rate is 27%.
• PAYE: Employers must deduct Pay As You Earn (PAYE) tax from employee salaries and remit it monthly, even if the salary is below the non-taxable threshold.
• Provisional Tax: Individuals and businesses liable for income tax pay provisional tax in three installments (March 31st, July 31st, and October 31st).
• Withholding Tax (WHT): A 15% WHT rate applies to payments made to non-resident individuals or entities for services rendered in Samoa. This is a final tax, and no further filing is required by the non-resident. For resident contractors, the WHT rate is 10%. If a government entity pays a resident for services, the WHT rate is also 10%.
• Business License Renewal: Business licenses expire annually on December 31st and must be renewed by January of the following year.

Record Keeping

Businesses are required to maintain records for seven years following the end of the relevant tax period.

As of February 5, 2025

Samoa's tax incentives are designed to encourage investment and stimulate economic growth, focusing on specific sectors and meeting particular conditions.

Tax Incentives in Samoa

Several tax incentives are available in Samoa, primarily targeting specific sectors like tourism and manufacturing. These incentives often come with certain conditions, such as minimum investment requirements and job creation targets. Information on specific incentives available can be sought from the Ministry of Commerce, Industry and Labour (MCIL) and the Ministry of Finance (MOF). One example is a tax credit available for investments exceeding SAT$100,000 in approved tourism developments. Further details on these incentives are available through the relevant Ministries.

General Tax Information for Businesses

• Tax Residency: A company is generally considered a tax resident if it is incorporated in Samoa or its central management and control are exercised in Samoa.
• Income Tax: Resident companies are subject to income tax on their worldwide income. Non-resident companies are taxed only on income sourced in Samoa. Specific tax rates can be found through the Ministry of Customs and Revenue (MCR). Withholding tax (WHT) may apply to certain payments made to non-residents.
• Value Added Goods and Services Tax (VAGST): Similar to VAT, VAGST is levied on most goods and services at a rate of 15%. Businesses with an annual turnover exceeding SAT$130,000 are required to register for VAGST. Further details on VAGST registration and requirements can be accessed through the MCR.
• Other Taxes: Samoa generally does not levy capital gains tax, inheritance tax, or estate tax on offshore companies. There may be minimal or no stamp duty on share transfers. It's important to consult the relevant authorities for the latest information on tax regulations and incentives.

Tax Incentives and Exemptions

• Tax Exemptions: Tax exemption certificates may be available for eligible businesses, typically requiring a minimum of 75% Samoan employees and meeting other criteria determined by the Tax Exemption Board. Further information is available from the American Samoa Bar Association. Details on application procedures, requirements, and the powers of the Board are also accessible through this avenue.
• Industry-Specific Incentives: Incentives are often tailored to specific industries. For example, the manufacturing sector may benefit from reduced import duties on raw materials. Information on these sector-specific incentives can be found from the MCIL.
• Investment Incentives: Attractive tax incentives are available to investors, particularly in the tourism sector. These might include tax credits or exemptions.
• Duty Drawbacks: Businesses may be eligible for duty drawbacks on certain imported goods. The Ministry for Revenue administers this scheme.

Application Procedures

The procedures for obtaining tax incentives and exemptions vary depending on the specific incentive. It's essential to contact the relevant government agency, such as the MCR, MCIL, or Ministry of Finance, for detailed information on eligibility criteria and application processes.

As of today, February 5, 2025, this information is believed to be correct, however, tax laws and regulations are subject to change. Therefore, it's always advisable to consult with tax professionals or the relevant Samoan authorities for the most current and specific information concerning your situation.