Commercial Agriculture and Agro-Processing

The income of any new activity in commercial agricultural farming and agro-processing approved and established on or after 1 August 2021 shall be exempt from tax as follows:

•  Capital investment from FJ $100,000 to FJ $250,000 for a period of 5 consecutive fiscal years; or
•  Capital investments from FJ $250,001 to FJ $1,000,000 for a period of 10 consecutive fiscal years; or
•  Capital investment from FJ $1,000,001 to FJ $2,000,000 for a period of 15 consecutive fiscal years; or
•  Capital investment above FJ $2,000,000 for a period of 20 consecutive fiscal years.

Bio- Fuel Production

Tax holiday is available to a taxpayer undertaking a new activity in processing agricultural commodities into bio-fuels as approved by the CEO from 1 January 2009 to 31 December 2028. To qualify, the tax payer shall be exempt from tax as follows:

• Capital investment from FJ $250,000 to FJ $1,000,000 for a period of 5 consecutive fiscal years; or
• Capital investments from FJ $1,000,001 to FJ $2,000,000 for a period of 7 consecutive fiscal years; or
• Capital investment above FJ $2,000,001 for a period of 13 consecutive fiscal years.

Export Income Deduction

A 60% export income deduction is currently available to exporters till 31 December 2024. The agriculture, fisheries and forestry sector are further incentivised with a 90 percent export income deduction to support new and existing businesses to venture into agriculture exports and increase access for farm produce to international markets.

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‍Customs Concession

• Importation of plant, machinery and equipment for initial establishment of the factory at rates of Free Fiscal, Free Import Excise and VAT applicable.
• Importation of chemical required for bio-fuel production at rates of Free Fiscal, Free Import Excise and VAT applicable.
• The importation of all agricultural items will be subject to zero Duty (specialized machinery, equipment and agricultural inputs provided that a support letter is obtained from the Ministry of Agriculture).

Legislative Provision

1.     Income Tax (Commercial Agricultural Farming and Agro-Processing Business Investment Incentives) Regulations 2021.

2.     Income Tax (Exempt Income) Regulations 2016, Part 9 Economic Development Exemptions.

3.     Customs Tariff Act 1986, Part 3, Schedule 2.

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Last Updated: August 2023

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