. /.   WORLD TRADE  
ORGANIZATION  G/SCM/N/192/FJI 
3 July 2009 
 
 (09-3268) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
Continuation of Extension under SCM Artic le 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 notification, dated 29 June 2009, 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 24 June 2008, 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. 
 
Export Income Deduction 
 
 The objective is to provide a facilitating mechan ism available to local producers of exportable 
commodities for imported inputs (not locally produced). 
 
 From 2009-2010, 50 per cent of e xport profit will be taxed, and in  2011, all export profits will 
be fully taxed.  
Year of assessment Percentage of export income to be deducted 
2001 and 2002 100% 
2003 and 2004 75% 
2005 and 2006 50% 
2007 and 2008 50% 
2009 and 2010 50% 
2011 0% 
 
 
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, G/SCM/N/192/FJI 
Page 2  
 
  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 Sc heme is most likely to cease in 2015 or earlier. 
  There has been no change to this scheme since Fiji's last notification. 
 
Film Making and Audio-Visual Incentives (Sixth Schedule) 
 
Income Tax Deduction
 
 
 150 per cent deduction for capital expenditure  on an F1 audio visual production. 
 125 per cent deduction for capital expenditure  on an F2 audio visual production. 
 Income Tax Exemptions
 
 
 Net income from an F1 production is exempted  until the taxpayer has received a 60 per cent 
return on capital expended.  Thereafter, net inco me will be fully taxed at the marginal rate. 
  Net income from an F2 production is exempted  until the taxpayer has received a 50 per cent 
return on capital expended.  Thereafter, net inco me will be fully taxed at the marginal rate. 
 Brief description of F1 and F2 
 
An F1 production must be made wholly or substantially in Fiji and contain significant 
local content. 
An F2 audio visual production can be obtained if the production entity has secured 
distribution for the production in at least 2 significant international markets and a 
guaranteed minimum return on investment is achieved, etc. 
Studio City Zone Concessions
 
  A licensed audio-visual producer is exempt from the payment of income tax (except for 
withholding tax) on any income derived from th e production activity carried on in the zone. 
 
 An approved individual who derives income from work in audio-visual production including fees, wages, royalties, profits, etc., and any inco me earned from sports performances including prize 
money, performance fees and endorsements is exempt from tax.  
 Live broadcast of films made or filming carried out in Fiji is zero-rated for VAT purposes. 
 Film Tax Rebates
 
  A 35 per cent rebate or credit on production cost s spent in Fiji is available to audio-visual 
producers. 
 
 The maximum allowance the government grants is $8.75 m.   
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