. /.   WORLD TRADE  
ORGANIZATION  G/SCM/N/177/FJI 
1 July 2008 
 (08-3141) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
SUBSIDIES  
 
 
Continuation of Extension under SCM Article 27.4 of the Transition Period for the  
Elimination of Export Subsidies Pursuant to the Procedures Contained in the  
General Council Decision in Document WT/L/691  
 
FIJI 
  
 The following communication, dated 24 June 2008,  is being circulated at the request of the 
Delegation of Fiji.    
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 In accordance with paragraph 10.6 of the Decision on Implementation-Related Issues and 
Concerns (WT/MIN(01)/17) and with reference to document G/SCM/39 adopted by the Fourth 
Ministerial Conference, held from 9 to 14 Novemb er 2001 in Doha, Qatar, and further to our 
notification dated 28 June 2007, the Government of the Republic of the Fiji Islands wishes to submit 
hereunder updated informa tion about the programmes for which extensions are being sought under 
Article 27.4 of the Agreement on Su bsidies and Countervailing Measures. 
 
Short-Term Export Profit Deduction 
 
 The "Short-Term Export Profit Deduction" scheme was introduced as a transitional measure to address the issue of income tax exemptions offe red to exporters by progressively bringing exporters 
under the standard tax regime over time. 
  Qualifying companies were exempt from income tax in 2002.  Export income has, since 2003, been subject to tax, according to the schedule set out in the following table: 
 
Year Taxable Income 
2001-2002 0% 
2003-2004 25% 
2005-2006 50% 
2007-2008 50% 
2009 100% 
 
 Fiji's taxable income for 2008 has remained at 50 per cent, in lieu of the scheduled 
commitment of 75 per cent.  The longer-term objec tive of phasing out completely in 2009 has not 
changed with respect to Short-Term Export Prof it Deduction as this is clearly stipulated in 
Section 21(b) of Fiji's Income Tax Act.  G/SCM/N/177/FJI 
Page 2  
 
  Export Processing Factories/Ex port Processing Zones Schemes 
 
 The Government of Fiji had given a clear indica tion of its intentions with regard to the Tax 
Free Factories/Tax Free Zones Scheme in the 2001 B udget.  Essentially, no further approvals have 
been/will be given after 31 December 2000 to companies applying to operate under the Scheme, 
which grants a company exporting 70 per cent or mo re of its products Fiscal Duty, Valued-Added Tax 
and Income Tax exemptions for a period of 13 years.  However, given that some companies were given approvals prior to 31 December 2000, the Scheme is most likely to cease on 2015 or earlier. 
 
 There has been no change to this scheme since Fiji's last notification. 
 
Audio-Visual Concessions  
 The Film-Making and Audio-Visual Incen tives Amendment Decree 2000 was promulgated 
on 18 May 2001 together with the Fiji Audio Vi sual Commission Decree 2000, to facilitate the 
establishment and development of th e audio-visual industry in Fiji. 
  The Decree provides the fiscal incentives, esp ecially for employees of non-resident film 
companies, for those investing in audio-visual productions, companies operating from the studio city 
zone and its residents.   There have been no added incentives to these concessions  
 
 No other amendments to the concessions and schemes notified under Article 27.4 have 
been made during the notification period.  
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