Who should register for income tax purposes?

Under the tax laws administered by the Commissioner of Inland Revenue, certain persons referred to as responsible persons/authorised officer are required to lodge returns of income or information, for the purposes of the various Act and Decrees. Others may contact the Authority to seek advice or information on tax issues.

The persons covered include:

• sole traders.
• companies.
• partnerships.
• government and public bodies.
• any other organization or body of persons whether or not operating for profit.

Sole traders or any other entity that does not have employees and who will be required under the provisions of sections 44, 52 or 53 of the Income Tax Act, to lodge returns within three (3) months after the end of the fiscal year must register to obtain a TIN.

For administrative and record keeping purposes, it is necessary to create a Tax Identification Number (TIN) for any person that will communicate with FIRCA on a regular basis. A temporary TIN may also be issued for one-off cases. This system enables FIRCA to identify each person who deals with the Authority, to maintain proper records and to handle queries promptly.

Who should register for VAT purposes?

For VAT purposes, Section 22(3) of the Value Added Tax Decree requires every person who becomes liable to register to do so within 21 days.

A business is liable to register for VAT purposes if the expected gross annual income will exceed the FJ$50,000 in twelve months.

Once an application for VAT registration is received, the Revenue Collection Division (Customer Enquiry Centre) must consider whether a person is eligible to be registered. This involves considering the person's eligibility in terms of Section 22.

HOW DO I REGISTER?

General Registration Requirements (Proof of Identity)

All businesses who should register with FIRCA must complete the standard registration form.

You are to complete either of the following:

• An Application for Registration of Sole Trader Businesses - (IRS001) if you are Sole Trader. The form is for registration of the following:
  • sole traders (i.e. people who carry on a business in their own name).
  • partners in a partnership.
  • beneficiaries (i.e people who receive income from a trust or estate).
  • investment income earners (people who receive income from rent, interest, dividends, etc.), who now pay or will pay provisional tax.

You must submit one of the following plus your business licence when registering:

• driver's licence & Wheel Tax Certificate.
• FNPF card.
• passport.
• official ID card.

• An Application for new or changes to registration of Companies, Partnerships or Trust (or Cooperatives, Non-Profit Organisations or Statutory Bodies) - (IRS003). The form is for registration of these types of businesses wishing to register for tax purposes:
  
• a partnership.
• a trust (including a unit trust).
• an estate of a deceased person.
• a charitable organization or non-profit body.
• a company whether public or private.

You must submit the following:

• for a partnership (whether or not a written partnership deed exists), a copy of its Partnership Deed/Agreement.

• for a trust (including a unit trust), a copy of its' Deed of Trust.

• for an estate of a deceased person, a copy of probate statement from the executor.

• for a charitable organization or non-profit body, a copy of its' Certificate of Incorporation and Memo/Articles of Association/Registration Certificate.

• for a company whether public or private a copy of its' Certificate of Incorporation and Memo/Articles of Association.

A business license needs to be submitted in addition to the above requirements in the case only of a trading business.

A site inspection would need to be carried out before a Tax Identification Number (TIN) is issued.

COMPLETING THE REGISTRATION FORM

Registration with the Revenue Collection Division ( Customer Enquiry Centre ) means any or all of the following:

•  getting a Tax Identification Number (TIN) for the first time.
•  becoming a person who pays Value Added Tax (VAT) to FIRCA.
•  becoming a person who pays Pay-As-You-Earn (PAYE) tax to FIRCA.

VAT Registration Details

This section must be completed only for applications by sole traders who wish to be registered for VAT.

If you want to account for VAT on a payment basis. This means that you can:

• claim a VAT input tax credit only when you make payments for business inputs, and
• charge output VAT only when you receive income payments.

You can only apply to account for VAT on a payment basis if the total value of your taxable supplies in the last twelve (12) months was, or for the last twelve (12) months is expected to be, FJ$100,000 or less.

You can only apply for a three (3) month taxable period if the total value of your taxable supplies in the last 12 months was, or for the last 12 months is expected to be, FJ$100,000 or less. If your actual or expected value of taxable supplies is over FJ$100,000 you must complete VAT returns on a monthly basis.