Tax holiday is available to a taxpayer undertaking a new activity in processing agricultural commodities into biofuels as approved by the CEO from 1 January 2009 to 31 December 2028. To qualify, the taxpayer must have;

• Capital Investment from FJD $250,000 to FJD $1,000,000 for a period of 5 conservative years; or
• Capital Investment from FJD $1,000,000 to FJD $2,000,000 for a period of 7 conservative years; or
• Capital Investment above FJD $2,000,000 for a period of 13 consecutive years.

Employ 20 local employees or more for every income year.

Duty free importation of plant, machinery and equipment for initial establishment of the factory.

Duty free importation of chemical required for biofuel production.

The Importation of all agricultural items will be subject to zero duty (provided that a support letter is obtained from the Ministry of Agriculture).

RENEWABLE ENERGY PROJECTS AND POWER COGENERATION

• 5-year tax holiday is available to a taxpayer undertaking a new activity in renewable energy projects and power cogeneration as approved by the Commissioner.
• Duty free importation of renewable energy goods is also available.

ELECTRIC VEHICLES CHARGING STATIONS

The income of any business setting up Electric Vehicle Charging Stations shall:

• be exempt from tax on profits derived from the operation of the station for a period of 7 years, given that the capital expenditure is above FJ$50,000.
• The company qualifies for a subsidy up to a maximum rate of 10% of the total capital expenditure incurred in the charging station, given that the capital expenditure is above FJ$50,000.
• be allowed to carry loss forward to 8 years.

Any business investing in electric buses shall be allowed a tax deduction of 55%.

Recycling Business

1. Any new investment in the recycling business will be granted a tax holiday and a duty concession package.

Conditions

• The project commences on or after 1 August 2021and the project is completed within 2 years from the date of the provisional approval.
• The company should have obtained a letter from the Department of Environment confirming that the screening process for EIA or EIA has been undertaken and is approved by the department.
•  The recycled product must meet the applicable national or international quality standard.

Legislative Provision

1.     Income Tax (Recycling Business Investment Incentives) Regulations 2021.

Customs Tariff Act 1986, Part 3, Schedule 2.

Tax Exemption Structure Capital Investment:

• 3 years tax holiday for capital investment of FJ $250,000 to FJ $500,000;
• 5 years tax holiday for capital investment of FJ $500,001 to FJ $2,000,000;
• 10 years tax holiday for capital investment of FJ $2,000,001 to FJ $5,000,000;
• 15 years tax holiday for capital investment of FJ $5,000,001 to FJ $10,000,000; and
• 20 years tax holiday for capital investment of in excess of FJ $10,000,000

Customs Concession

Customs import duty exemption for the establishment of the business will be available on the importation of raw materials, machinery and equipment including spare parts. Duty concession on capital equipment, plant machinery and any other goods employed in the production of other goods but does not include furniture or motor vehicles.

Legislative Provision

1.     Income Tax (Electric Vehicle Charging Station Development Package) Regulations 2016.

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

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Last Updated: August 2023