What is a charitable organisation?

A charitable organisation can be any institution, body of persons or irrevocable trust of a public character established solely for the relief of the poverty or distress of the public.

Other characteristics:

• non profit body.
• the funds owned by the organisation will not be available to any member for personal use.
• the assets of the organisation will not be available to any member for personal use upon cessation.
• the assets will be distributed to other charitable organisations.

Is a charitable organisation exempt from tax?

An organisation that has been registered under the Charitable Trusts Act or any other Act by its members is not automatically exempt from paying income tax. Approved charitable organisations are available here.

How do charitable organisations apply for exemption?

To qualify for exemption from income tax, application in writing must be made to the Commissioner of Inland Revenue (CIR). The application must be submitted with the taxpayer registration form in the case of new charitable organisations that have not registered with FIRCA.

The instructions for completing the registration form state that all necessary information relating to the establishment of the business must be provided.

The contents of the Articles of Association, Memorandum of Agreement or Trust objectives will enable the Commissioner to make a decision on whether or not the income of the organisation would be subject to income tax.

How do I register?

Every person liable to taxation under the provisions of the Income Tax Act or who becomes liable to register under the provisions of the Value Added Tax (VAT) Decree must complete a registration form within the time frame specified in the legislation.

For income tax purposes, employers must register within thirty (30) days of the commencement of any trade, business, profession or vocation (Paragraph 3 (1), Section 81 – Income Tax (employment) Regulations; Subsidiary Legislation).

Other taxpayers such as salaried employees, 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 3 months after the end of the fiscal year must register to obtain a Tax Identification Number (TIN).

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

Once an application for VAT registration is received, the Commissioner must consider whether a person is eligible to be registered. This involves considering the person's eligibility in terms of Section 22 of the VAT Decree.

To assist in the prevention of fraudulent VAT registration, an identity check must be completed therefore applicants must provide:

• original documents relating to the formation of the business such as certificate of registration from the Registrar of Companies office, memorandum of agreement or articles of association.
• the name of the authorised officer and contact details such as telephone number.
• the exact location of the business premises.

Anyone who carries on a taxable activity with a gross turnover that is more than FJ$50,000 in twelve (12) months must register.

Once the Commissioner is satisfied that a person who has applied for registration is eligible to be registered, the person is then 'REGISTERED' and will be notified accordingly.