WORLD TRADE  
ORGANIZATION   
G/SCM/N/226/FJI 
18 October 2011 
 (11-5166) 
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 communication, dated 17 October 2011, 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 refe rence to document G/SCM/39 adopted by the 
Fourth Ministerial Conference, held from 9 to 14 November 2001 in Doha, Qatar, and further to our 
notification dated 30 July 2010, we would like to  submit hereunder updated information about the 
programmes for which extensions are being sought under Article 27.4 of the Agreement on Subsidies 
and Countervailing Measures.   
  Please note that the Action Plan required under Paragraph 1(f) of the decision contained in WT/L/691 is incorporated into this notificati on under the heading of each of the programmes. 
 
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).   For the past few years, Fiji's Balance of 
Payments and Foreign Reserves have been under signi ficant strain due to an underperforming export 
sector and a burgeoning import bill - in large becau se of high petroleum and food prices and the 
recent devaluation of the Fiji currency.  The export income deduction is a measure therefore, to help 
stabilize Fiji's weak Balance of Payment and Forei gn Reserves position.  In compliance with l(f) of 
WT/L/691, a schedule for the elimination of the Expo rt Income Deduction Scheme is given below.   
  This year 50 per cent of export profit will be taxed, and from 2012, all export profits will be 
incrementally taxed until 2015 wher eby export profits will be fully taxed, as per the table provided 
below.   G/SCM/N/226/FJI 
Page 2  
 
   There has been no change to this sch eme since Fiji's last notification.   
 
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 50% 
2012 40% 
2013 30% 
2014 20% 
2015 0% 
 
Export Processing Factories/Ex port Processing Zones Scheme 
 
 The Government of Fiji had given a clear indicati on of its policy intentions with regard to the 
Tax free Factories/Tax Free Zones Scheme in the 200 1 Budget.  Essentially, no further approvals have 
been/were given after 31 December 2000 to compani es applying to operate under the Scheme, which 
grants a company exporting 70 per cent or more of  its products Fiscal duty, Value-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 Sche me is most likely to cease on 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 exem pted until taxpayer has received a 60 per cent 
return on capital expended.  Thereafter, net income  will be fully taxed at the marginal rate.   
  Net income from an F2 production is exem pted until taxpayer has received a 50 per cent 
return on capital expended.  Thereafter, net income  will be fully taxed at the marginal rate.   
 
Brief description of F1 and F2 
 
 An F1 production must be made wholly or su bstantially 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 si gnificant 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.  
  G/SCM/N/226/FJI 
 Page 3 
 
 
   An approved individual who derives income from work in audio-visual production including 
fees, wages, royalties, profits, etc;  and any in come 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 (Amendment) 
 
 Effective from 1 January 2011 the rebate or cr edit on production costs spent in Fiji available 
to audio-visual producers was increased from 35 per cent to 47 per cent.  The maximum allowance the 
government grants is now $11.75m.   
 
Action Plan:  As has been included in past no tifications, the Film Making and Audio visual 
Incentives were notified initially under Article 27 .4 of the ASCM in error as it refers to a 
programme relating to trade in services which fa lls outside the scope of the ASCM.  It has 
nonetheless continued to be notified for purposes of  juridical certainty.  As it does not actually 
fall under the scope of the ASCM, Fiji has no plans to terminate the programme and has not prepared an action plan.   
 
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