• 1. Freight tax

Freight tax

Income Tax : 2 % of gross outward freight derived from international transport activities of non-residential shipowners and/or operators.

Exemption Agreements

 Residence of the following countries may benefit from double taxation agreements which reduce or waive the income tax on voyage earnings. The agreements do not allow for exemption on earrings derived from coastal operations. 

Country Reduction Date of entry into force Date of effect
Australia 100% 28/12/1990 01/01/1991
India 1 100% 15/05/2014 01/01/2015
Japan 100% 23/04/1963  
Korea, Republic of 100% 17/02/1995 01/01/1995
Malaysia 100%   01/01/1998
New Zealand 100% 17/08/1976 01/01/1975
Papua New Guinea 100%   01/01/1999
Qatar 100% 17/06/2013  01/01/2014
Singapore 100% 28/11/2006 01/01/2007
United Arab Emirates  100% 03/09/2012  01/01/2013
United Kingdom 100% 17/08/1976 01/01/1975
Comprehensive treaty negotiations currently in progress:
Signed but not ratified
 
In the process of negotiation or finalised but not signed
Russia      
United States      

Notes

  1. Profits from the operation of ships in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated. 

    If the place of effective management of a shipping enterprise is aboard a ship, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship is a resident.

 

Exemption based on reciprocity

Exemption can also be obtained on the basis of reciprocity. However, this will normally only be granted to countries where Fijian shipping companies operate.

Remarks

The tax must be paid before departure. When a tax exemption treaty is in place, refunds of paid taxes may be obtained. 

Companies seeking exemption under the listed treaties must submit a certificate issued by the respective tax authorities to establish that the applicant is a resident of the country for income tax purposes and that the applicant's income derived from the operation of ships is subject to the country's income tax regulations.

 

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