| Article Index |
|---|
| Starting a Business in Tonga |
| Employment and Visas |
| Taxation in Tonga |
| All Pages |
Taxation in Tonga
What is taxation like in Tonga?
Individual Income Tax
| Earnings Amount per annum | Tax rate |
| $0 - $7,400 | 0% |
| $7,401 - $30,000 | 10% |
| $30,000 and above | 20% |
Company Tax
All resident and non-resident companies are subject to a 25% tax.
Non-residents receiving income in Tonga are subject to taxes based on the source:
| Source of Income | Tax rate |
| Insurance premiums | 5% |
| Rent | 7.5% |
| Independent Services | 10% |
| Interest, dividends, royalties, and management fees | 15% |
For non-resident shipping, airline companies, and charters, a tax is 3% of gross income from goods leaving Tonga is imposed.
Consumption Tax
There is a broad-based consumption tax of 15% for all businesses with turnover above T$100,000 (apart from agricultural producers, who are exempt).
Other Taxes
All lease agreements for land or buildings are subject to a 1% duty on annual rental. Also, the transfer of any lease or sub-lease of land and the sale of any buildings, fences, growing crops, or livestock is subject to a tax of 10% of the purchase price.
For further information
Inland Revenue Department
Queens Salote Ex-Students Center
P.O. Box 502, Railway Rd
Nuku’alofa, Tonga
Ph: (676) 23 444
Fax: (676) 26 638
Email:
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Website: www.revenue.gov.to
Conference Room for Hire!
Conference room hire rates:
Projector and Screen available for FREE when hiring the conference room. Book Now!