Witholding Tax – Business & Self-Employed
What it is
It is tax deducted for income such as dividend, interest, royalty that are received by either a resident or non-resident. It also applies to payments received for the hire or rent of films or the use whether by way of purchase or long term hire.
Categories of income to which it applies
Withholding Tax are tax authorized by Sections 8, 8A, 9, 9A, 10 and 10A of the Income Tax Act in respect of dividend, interest, management fee, miscellaneous, know how payments and royalties. It also applies to payments made for hire or rental of films.
Double Tax Agreement country rates
The table below details the withholding tax rate that applies in respect of each of the payments to a party from one of the countries having a double tax agreement with Fiji.
Country |
Royalty |
Interest |
Dividend * |
Management Fee |
Know-How |
NZ |
15% |
10% |
15% |
15% |
15% |
UK |
15% |
10% |
15% |
15% |
15% |
Japan |
15% |
10% |
15% |
15% |
15% |
Korea |
10% |
10% |
15% |
15% |
15% |
Australia |
15% |
10% |
20% |
15% |
15% |
Malaysia |
15% |
15% |
15% |
15% |
15% |
PNG |
15% |
10% |
15% |
15% |
15% |
Singapore |
15% |
10% |
15% |
15% |
15% |
* withholding tax will only apply to the extent that dividend are distributed out of retained earnings on which no corporate tax has been paid.
Allowing of Tax Credits
In case where tax credit is given the income should be included in the calculation of total income and tax chargeable shall be abated by any withholding tax paid.
Evidence of tax paid should be submitted to substantiate claim. If evidence is lost a certified copy can be obtained otherwise no credit will be given. Under the Double Tax Agreement (Singapore only, others), often member countries do exchange information where this can be sorted out.
How do I claim for withholding tax paid?A certificate of deduction must be obtained from the person making the payment. This certificate must be attached to your return of income.
What happens if the certificate is lost or not available?
You will not receive any credit for the tax deducted at source. Upon receipt of your request in writing, we can assist you by calling on the person who made the deduction to provide the details but this may take a while to sort out.
