Tourism

Standard Allowance

This incentive is specifically designed to assist construction of new hotels, renovation and refurbishment of existing hotels or integrated tourism development.

Tax Benefit

Investment allowance of 50% of total capital expenditure is allowed as a deduction.

Conditions

Approved hotels shall commence construction of the project within two years from the date the provisional approval was granted.
Investment Allowance can only be written-off against the income of the hotel business or income from the hotel premises.
There should not be any shift of tax revenue to other countries.

Legislative Provision

1. Income Tax (Hotel Investment Incentives) Regulations 2016.

2. Income Tax (Exempt Income) Regulations 2016.

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

SHORT LIFE INVESTMENT PACKAGE

This incentive is designed to assist new projects relating to the construction of hotels and integrated tourism development.

Tax Benefit

The income of any approved new hotel will be exempted 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 from FJ $2,000,001 to FJ $40,000,000 a period of 13 consecutive fiscal years.
Capital Investment above FJ $40,000,000 a period of 20 consecutive fiscal years.

Customs Concessions

Approved companies under the SLIP incentive are eligible for duty concession under:

1. The approved project shall be completed within24 months from the date the provisional approval was granted.

2. Code 244 of the Customs Tariff on all capital goods (including capital equipment, plant & machinery including building materials, furnishings and fittings, room amenities, kitchen and dining room equipment and utensils and specialized water sports equipment) not available in Fiji.

Conditions

The approved project shall be completed within24 months from the date the provisional approval was granted.
SLIP incentives is also available for retirement resorts and hospital resorts, provided the length of stay is not more than 3 months.

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OTHER INCENTIVES FOR THE TOURISM INDUSTRY

Exempt Income – Backpacker Operators

In accordance with Part 9, Income Tax (Exempt Income) Regulations 2016, locally owned backpacker operators are exempt from income tax provided their annual gross turnover is not exceeding FJ$ 1m.

Duty Concessions

Hotels and Resorts

In accordance with Code 235 to Part 3 of the Customs Tariff, approved hotels and resorts are eligible for duty concession on building materials, furnishings and fittings, equipment including front office equipment, room amenities, kitchen and dining room equipment/utensils, specialized water sports equipment e.g. water bikes and other similar goods at a rate of 3% Fiscal duty.

Building materials, furnishings and fittings, equipment including front office equipment, room amenities, kitchen and dining room equipment and utensils, which are not manufactured and available in Fiji for goods that have a fiscal duty of more than 10% can qualify at a rate of 5% Fiscal Duty, Free Import Excise and VAT applicable.
Building materials, furnishings and fittings, equipment including front office equipment, room amenities, kitchen and dining room equipment and utensils, which are not manufactured and available in Fiji for goods that have a fiscal duty of more than 5% can qualify at a rate of 3% Fiscal Duty, Free Import Excise and VAT applicable.
Heavy plant and machinery for project development work provided such plant and machinery is re-exported after completion of the project at a rate of Free Fiscal Duty, Free Import Excise and VAT applicable.
Duty free importation for all hotels and resorts will be available from 1 August 2021 until 31 December 2022. 5% ECAL will also be waived on all imports

Jet Skis

In accordance with Code 270 to Part 3 of the Customs Tariff, approved companies registered to operate water sports related businesses and other tourism related activities are eligible for duty concession for jet skis at a rate of 5% Fiscal Duty, Free Import Excise and VAT applicable.

Retirement Village Incentives

This incentive is specifically designed to encourage investment in the construction of retirement villages and aged care facilities.

Conditions

Applicable to companies engaged in development of a retirement village or aged care facility, equipped with facilities, services (including health services) and amenities suitable for retirees.
Capital investment over FJ$250,000
The project should be completed within 2 years from the date the provisional approval was granted.

Tax Benefit

Income of the approved company will be exempt from tax as follows:

Capital investment from FJ$250,000 to FJ$1,000,000for a period of 5 consecutive fiscal years;
Capital investment from FJ$1,000,001 toFJ$2,000,000 for a period of 7 consecutive fiscal years; and
Capital investment of more than FJ$2,000,001 for a period of 13 consecutive fiscal years.

Customs Concessions

Companies or entities engaged in the construction of retirement village are eligible for duty concessions under Code 297 for importation of raw materials, machinery and equipment (including parts and materials) for the initial establishment of the facility at a rate of Free Fiscal duty, Free Import Excise and depending on the type of good, VAT applicable.

Legislative Provision

Part 2, Income Tax (Retirement Village Incentives) Regulations 2019

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Last Updated: August 2023