APPENDIX TABLES Fiji WT/TPR/S/213 
 Page 129 
 
 
Table AI.1 
Exchange controls requiring Re serve Bank approval - July 2008  
Type of payment  Recent major changes 
A. Import payments   
Prepayment for goods already cleared 6 December 2006  
Delegation to allow full amount removed - all su ch transactions require Reserve Bank approval 
Advance import payments prior to 
shipment 6 December 2006  
Delegation to allow F$1 million per invoice/am ount due removed  - excess amounts require 
Reserve Bank approval 
8 June 2007  
Only applications above F$15,0 00 require Reserve Bank approval 
31 October 2007 
Only applications above F$50,000 pe r invoice require Reserve Bank approval 
8 September 2008  
Only applications above F$1 million per invoice require Reserve Bank approval.  
Merchanted goods 6 December 2006  
Delegation to allow F$1 million per invoice/amount  due removed  - all such transactions 
require Reserve Bank approval 29 September 2008 
Delegated monthly limit introduced of F$50,000 
To third parties for goods already received 6 December 2006  
Delegation to allow F$1 million per invoice/amount  due removed  - all such transactions 
require Reserve Bank approval 
Oil  All imports require Reserve Bank approval 
B. Insurance/Re-insurance 
payments offshore 6 December 2006  
Delegation to allow full amount (subject to prio r approval from the Insurance Unit of the 
Reserve Bank) removed - all such tran sactions require Reserve Bank approval  
C. Loan repayments  
Loan prepayment 6 December 2006  
Delegation to allow F$100,000 per loan balance removed - all such transactions require 
Reserve Bank approval 
D. Offsetting of foreign exchange 
earnings against foreign 
currency bills payable  
Merchandise imports 6 December 2006 
New delegated limit of F$100,000 per transac tion - amounts in excess require Reserve Bank 
approval 
31 August 2008  
Delegated amount per transacti on increased to F$1 million  
Other 6 December 2006  
Delegation to allow full amount removed - all su ch transactions require Reserve Bank approval 
E. Offshore investment  
Individuals/entities 6 December 2006  
Delegated limit of F$20,000 per family or busin ess entity and authority for commercial banks 
to open foreign currency accounts for inve stment within this limit suspended 
Companies, Fiji National Provident 
Fund and non-bank financial 
intermediaries 6 December 2006  
Reserve Bank approval for companies of up to  F$100,000 annually, of up to F$10 million 
annually for the Fiji National Provident Fund a nd of up to F$1 million annually for non-bank 
financial intermediaries suspende d - no such investments permitted 
F. Profits declared and 
distributed to non-resident 
shareholders, partners and sole 
proprietors  
Capital profit remittances  Restricted to F$1 million per annum 
Dividend/operating profit remittances  Restricted to  any one calendar year’s profit not yet remitted 
Local borrowings to fund profit 
remittances restricted 6 December 2006  
Delegated limit of F$100,000 per business pe r annum removed  - excess amounts require 
Reserve Bank approval 
Table AI.1 (cont'd) WT/TPR/S/213 Trade Policy Review 
Page 130 
 
 
Type of payment  Recent major changes 
G. Withdrawal of investment by 
non-resident investors  
Sale of shares/assets 6 December 2006  
Delegated limit of F$100,000 per business pe r annum removed  - excess amounts require 
Reserve Bank approval 
Shareholder’s funds 6 December 2006  
Delegated limit of F$100,000 per business pe r annum removed  - excess amounts require 
Reserve Bank approval 
H. Investments in Fiji by foreign 
investors  
Issue/transfer of shares/capita l  Require Reserve Bank approval 
I. Local borrowings and 
guarantees by non-residents  
Non-resident controlled business 
entities 6 December 2006  
Delegated limit reduced from F$10 million to F$0.5 million per new borrowing (inclusive of 
basic limits and temporary facilities) – ex cess amounts require Reserve bank approval 
30 March 2007  
Foreign-owned companies encouraged to borrow offshore  - domestic borrowings by existing 
100% foreign owned companies to be gradually reduced 
New foreign-owned companies required to fund capital expenditure offshore (onshore 
borrowings for working capital allowed);  compan ies in joint ventures with local firms can 
borrow domestically in proportion to local equity  
1 January 2008  
Foreign-owned firms allowed to borrow locally up to a certain share of their total borrowings 
based on shareholding structure under the debt to equity guideline of 3:1:  
  - up to 75% local financing for firm s with 51-70% non-resident ownership: 
  - up to 65% local financing for firm s with 71-90% non-resident ownership: 
  - up to 50% local financing for firm s with 91-100% non-resident ownership  
25 April 2008  
Foreign-owned firms allowed to borrow locally up to a certain share of their total borrowings 
based on shareholding structure under the debt to equity guideline of 3:1:  
  - up to 85% local financing for firm s with 51-70% non-resident ownership: 
  - up to 75% local financing for firm s with 71-90% non-resident ownership: 
  - up to 60% local financing for firm s with 91-100% non-resident ownership 
Restrictions apply only to new borro wings of F$0.5 million and above  
Non-resident individuals  6 December 2006 
Delegated limit  of F$0.5 million per non-resident  borrower subject to meeting the debt/equity 
guidelines removed – all such transa ctions require Reserve Bank approval 
1 January 2008  
Local borrowings to buy property withdrawn ex cept for approved tourism-related projects   
23 June 2008  
Non-resident controlled companies may apply for exempt status to allow non-resident 
individuals investing in their project s to borrow up to 75% locally where: 
  - project would have been 25% complete d when the lending policy was implemented in 
January 2008  
  - documentary evidence of completion to be verified by chartered accountant; 
  - only stage of project in progress at the time of policy change will be exempt 
Allowed to borrow up to 60% lo cally to build residences 
Allowed to borrow locally up to F$100,000 for property maintenance and repairs 
Still required to fund property acqui sitions entirely from abroad 
 
J. Travel allowance 6 December 2006 
Delegated limit reduced from F$20,000 per trave ller per trip to F$5,000 (return ticket holders) 
and of F$5,000 (one-way ticket holders) removed for Fiji pass port holders - excess amounts or 
those with one-way tickets require Reserve Bank approval.  For foreign passport holders 
delegated limit is up to the full amount if fund s directly sourced from the applicant’s F$ 
external or foreign accounts 29 September 2008  
Delegated limit increased to F$10,000 per trav eller per trip for return ticket holders   
Table AI.1 (cont'd) Fiji WT/TPR/S/213 
 Page 131 
 
 
Type of payment  Recent major changes 
K. Credit and debit card facilities  
Credit cards 6 December 2006  
Delegated limit of the full amount reduced to F$5,000 per month for expe nses and to F$200 per 
month per credit card holder in foreign currenc y cash withdrawals  - excess amounts require 
Reserve bank approval 
31 October 2007  
Monthly limit increased to F$10,000 on overseas transactions and to F$1,000 on overseas cash 
withdrawals 
29 September 2008 Delegated monthly limit increased to  F$15,000 on overseas transactions 
Debit cards 6 December 2006  
Monthly usage and cash drawing limits reduced from F$10,000 to F$500 and from F$5,000 to 
F$100 - excess amounts require  Reserve Bank approval 
29 September 2008 
Delegated monthly limit increased to  F$15,000 on overseas transactions  
L. Deposits into expatriate F$ 
external accounts 6 December 2006  
Delegated limit of F$1,000 per month from "oth er funds from local sources" and the "full 
amount" from asset sales reduced to F$200 a nd F$50,000 per sale - excess amounts require 
Reserve Bank approval 
M. Other remittances  
Trade related transactions 6 December 2006  
Delegated limit introduced of F$50,000 per tr ansaction - excess amounts require Reserve Bank 
approval 29 September 2008  
Delegated amount increased to F$100,000 per invoice  
Foreign currency loan repayments  6 December 2006 
Delegated limit reduced from F$500,000 to F$50, 000 per transaction - excess amounts require 
Reserve Bank approval 
29 September 2008  
Delegated limit increased to F $100,000 per scheduled payments  
Office expenses and other foreign 
currency bills payable, education and 
medical expenses paid directly to 
institution, and alimony and other court order payments 6 December 2006 
Delegated limit reduced from full amount to F$50,000 per transaction - excess amounts require 
Reserve bank approval 
29 September 2008 Delegated limit increased to F$100,000 for the current year 
Gifts, maintenanc e, miscellaneous 
expenses 6 December 2006 
Delegated limit reduced from F$10,000 per a pplicant/beneficiary per annum to F$500 per 
application - excess amounts re quire Reserve bank approval 
Education and medical expenses not 
paid directly to institution 6 December 2006 
Delegated limit reduced from F$20,000 per be neficiary per annum a nd F$20,000 per medical 
treatment to F$500 per application - ex cess amounts require Reserve bank approval 
29 September 2008 Delegated limit increased to F$1,000 per benefi ciary per annum on education and per medical 
treatment 
Cancelled hotel bookings, subscriptions, and wages for foreign 
crew 6 December 2006 
Delegated limit reduced from full amount to F$500 per application - excess amounts require 
Reserve bank approval 
29 September 2008 
Delegated limit increased to F$1,000 on subscriptions 
N. Forward foreign exchange 
facility 14 May 2008  
Relaxed to allow commercial banks to enter into  forward foreign exchange contracts with local 
importers of rice, wheat, flour, edible oils and milk/milk powder to hedge against future price 
rises 
Table AI.1 (cont'd) WT/TPR/S/213 Trade Policy Review 
Page 132 
 
 
Type of payment  Recent major changes 
Memorandum item: guidelines for 
former Fiji residents issued with 
permanent resident status  Issue and transfer of securities 
Old guidelines:   
- approval required for additional issue  of shares: 
   - evidence of equity provided from offshore; 
   - a Foreign Investment Registration certificate 
- approval required to transfer shares - approval for offshore settlement may also apply 
New guidelines (from 14 August 2008): 
- approval no longer needed to issue shares, eith er new or additional or transfer of shares 
- offshore settlement no longer applicable 
Local borrowings by individuals 
Old guidelines:  
- purchase of property to be fully funded from offshore New guidelines (from 14 August 2008):  
- Approval no longer required 
Definition of "resident companies" applicable for determining control when assessing 
eligibility of companies to borrow locally: 
Old guidelines:  
- company with at least 50% of shares he ld by residents is "resident controlled" 
   - approval to borrow locally not required 
- where shares held by former Fiji residents, th ese form part of the foreign ownership of the 
 company since they are considered non-residents    - borrowing requests assessed according to current policy guidelines 
New guidelines (from 14 August 2008):  
- no change to definition - shares held by former Fiji residents will form  part of the local ownership since they are 
 considered Fiji residents 
   - local borrowings will not require Reserve Ba nk approval if residents hold majority shares 
Dividends/profit remittances  
Old guidelines: 
- current repatriation rules apply New guidelines (from 14 August 2008):  
- will be encouraged to reta in funds in Fiji as they ar e considered Fiji residents 
Accounts held with commercial banks 
Old guidelines: 
- external and/or foreign currency accounts 
New guidelines (from 14 August 2008) 
- resident bank accounts - may be allowed to hold external and/or forei gn currency account funded from external sources
Repatriation of foreign equity or advances  
Old guidelines  
- current repatriation rules apply 
New guidelines (from 14 August 2008) 
- can repatriate initial investment contributed from offshor e on condition that funds are sourced 
 from income earnt in Fiji.  
Source:  Reserve Bank (2006), Reserve Bank of Fiji Exchange Control Re strictions effective from 6 December 2006 .  
Viewed at: http://www.reservebank.gov.fj/docs/Exch ange%20Control%20Restrictions%20December% 20 
2006.pdf;  Reserve Bank Press Release No. 19/2008, Reserve Bank of Fiji  Announces Policy Changes  , 
14 August;   Reserve Bank Press Release No. 26/2008, Reserve Bank Announces Rela xation in Exchange Control 
Policies , 29 September;  and various earlier press rel eases.  Viewed at: http://www.reservebank.gov.fj/ 
default.aspx?page=exchangeCB&whichType=6. Fiji WT/TPR/S/213 
 Page 133 
 
 
Table AI.2 
Trade in services, 2003-07 
(F$ million)  
Service 2003 2004 2005 2006 2007a 
Exports 1,163.9  1,192.0 1,369.0 1,339.5 955.0  
Transportation 348.0  336.5 491.8 431.0 333.8  
   Sea 21.2  20.4 22.9 29.7 31.9  
      Passenger 0  0 0 0 0  
      Freight 5.5  4.4 8.0 11.9 ..  
      Other 15.7  16.0 14.9 17.8 ..  
   Air 326.8  316.1 468.9 401.3 301.9  
      Passenger 284.8  285.3 400.6 352.2 260.5  
      Freight 17.5  16.5 36.1 25.6 20.9  
      Other 24.5  14.3 32.2 23.5 20.5  
Travel 645.5  727.3 741.8 750.2 530.2  
   Business 45.3  42.8 48.4 49.1 31.3  
   Personal 600.2  684.5 693.4 701.1 498.9  
      Health related 0  0 0 0 0  
      Education related 6.9  9.7 8.6 8.5 13.1  
      Other 593.9  674.8 684.8 692.6 485.8  
Communication 49.7  50.4 48.5 37.5 19.3  
   Postal  2.8  2.9 3.3 2.2 1.5  
   Telecommunications 46.9  47.5 45.2 35.3 17.8  
Construction 0.3  0 0 0 0  
Insurance 1.6  0.8 0.8 1.1 0.8  
Financial  2.0  2.5 2.5 2.6 0.8  
Computer and information 0.7  4.3 4.3 4.2 1.0  
Royalties and license fees 2.0  0.2 0.2 0.3 4.2  
Other business services 59.4  34.6 45.6 52.7 36.3  
   Merchanting and other trade related 16.1  9.4 8.8 2.6 18.9  
   Operational leasing 6.0  1.1 3.6 8.6 3.6  
Miscellaneous business and professional 
services 37.3 24.1 33.2 41.5 13.8 
 Legal, accounting, management, etc. 4.5  4.7 9.2 9.9 4.3  
 Advertising, market research 0.2  0.2 0.4 1.4 4.3  
 Research and development 0  0.1 0 0 0.6  
 Architectural, engineering, etc. 0  2.2 1.7 2.2 0  
 Agricultural, mining, on-site processing 10.3  3.7 11.3 13.8 3.6  
 Other 22.3  13.2 10.6 14.2 1.0  
Personal, cultural and recreational activities  0.1  0.5 1.1 1.4 0.8  
   Audiovisual and related services 0.1  0.5 1.1 1.4 0.7  
   Other personal, cultural services 0.1  0 0 0 0  
Government services .. 34.9 32.4 58.5 27.8  
Table AI.2 (cont'd) WT/TPR/S/213 Trade Policy Review 
Page 134 
 
 
Service 2003 2004 2005 2006 2007a 
Imports 752.1  841.4 887.9 939.1 634.7  
Transportation 440.0  483.0 486.6 514.3 365.0  
   Sea  211.1  231.1 251.6 288.3 190.6  
      Passenger 0  0 0 0 0  
      Freight 211.1  231.1 251.6 288.3 190.6  
      Other 0  0 0 0 0  
   Air 228.9  251.9 235.0 226.0 174.4  
      Passenger 34.9  42.4 44.3 38.8 41.8  
      Freight 18.8  15.8 12.1 30.9 21.8  
      Other 175.2  193.7 178.6 156.3 110.8  
Travel 131.5  162.2 179.3 175.6 106.5  
   Business 3.4  9.6 10.6 11.2 6.9  
   Personal 128.1  152.6 168.7 164.4 99.6  
      Health related 5.2  7.4 7.7 5.9 6.0  
      Education related 14.2  17.0 18.9 15.2 10.7  
      Other 108.7  128.2 142.1 143.3 82.9  
Communication 24.3  27.7 32.3 27.7 11.9  
   Postal  2.3  2.2 2.3 1.2 1.0  
   Telecommunications 22.0  25.5 30.0 26.5 10.9  
Construction 3.6  0 0.2 0.5 0.4  
Insurance 44.5  44.4 50.2 51.5 34.1  
Financial  2.0  2.0 `1.5 1.6 0.2  
Computer and information 9.3  18.8 21.0 13.6 17.5  
Royalties and license fees 1.9  1.3 2.0 1.7 1.7  
Other business services 63.0  58.3 73.9 95.2 56.8  
 Merchanting and other trade related 18.4  24.4 26.3 40.9 21.9  
 Operational leasing 13.1  9.9 9.0 6.5 7.2  
 Miscellaneous business and 
 professional services 31.5 24.0 38.6 47.8 27.7 
      Legal, accounting, management, etc. 1.5  0.5 15.5 24.4 16.7  
      Advertising, market research 2.0  2.0 2.2 2.4 1.0  
      Research and development 0.2  0 0.1 0 1.0  
      Architectural, engineering, etc. 1.1  3.0 2.8 3.8 0  
 Agricultural, mining, on-site processing .. 0 0.1 0.4 7.9  
       Other 26.7  18.5 17.9 16.8 1.1  
Personal, cultural and recreational activities  4.5  4.2 4.0 7.6 1.7  
   Audiovisual and related services 4.4  4.0 3.4 7.4 1.4  
   Other personal, cultural services 0.1  0.2 0.6 0.2 0.3  
Government services 27.5  39.5 36.9 49.8 38.6  
.. Not available. 
a Preliminary. 
Note:  Figures may not add due to rounding. 
Source:  Fiji Islands Bureau of Statistics (2008), Key Statistics , June.  Viewed at:  http ://www.statsfiji. gov.fj/Economic/ 
BOP.htm;  and the Fijian authorities.  Fiji WT/TPR/S/213 
 Page 135 
 
 
Table AIII.1 
Main investment incentives, November 2008 
Sector Details 
A. Tariff and other concessions 
Tourist-related activities Facilities subject to Short Life I nvestment package (SLIP) ma y import plant and machinery 
(excluding furniture and motor vehicles) exempt fr om all duties until end-2008.  To be replaced by 
2009 Hotel Incentive Package (announced in 2009 Budget) that will allow all capital goods 
(including capital equipment, plant and machinery) not available in Fiji to be imported duty free.  
Concessionary tariffs apply under Code 235 (Custo ms Tariff Act) of 10% on building materials, 
furnishing and fittings, equipment including front office equipment, room amenities, kitchen and 
dining room, and equipment and utensils (in 2007 concessions only applied if goods unavailable 
domestically);  of 3% for specialized boats  and vessels including water sports equipment 
unavailable locally;  and of 5% on heavy plant and machinery for developing resorts if re-exported 
after completion.   
Mining New mining projects may import plant and equi pment (except hand tools) duty free for up to two 
years.       
Ship building Ship/boat builders may im port materials, including fixtures, fitti ngs and components, free of tariffs. 
Fishing Boats imported for commercial fishing are subject to a tariff of 10% plus VAT, and a 3% special 
tariff plus VAT applies to specialized fishing gear and equipment and fish baits.      
Logging and saw-milling Saw m illing and logging equipment at 5% tariff plus VAT.  
Bus body building New chassis with engines for building bus  bodies and for replacing old engines attract zero tariff 
plus VAT while identifiable fixtures and com ponents are dutiable at 5% tariff plus VAT.   
Regional Under the Government’s Look North Policy, fi rms in targeted areas located in Vanua Levu can 
import plant, machinery and raw materials used for manufacturing free of tariff if used exclusively 
on the Island.  Tax free region to be established from 2009 (announced in 2009 Budget) in the 
North and other maritime islands (Vanua Le vu, Rotuma, Kadavu, Levuka, Lomaiviti and Lau) 
allowing raw materials, machinery and equipment needed to establish operations to be imported 
duty free provided minimum initial in vestment of F$2 million.   
B. Investment allowance 
Agricultural, forestry, marine, 
rural manufacturing and 
information technology  Businesses may claim a 40% investment allowa nce on capital asset purchased (excluding land, 
buildings, passenger cars and trading stock) a bove F$50,000 annually.  It began in 2001 and was 
extended from end 2005 to end 2008.  Eligible taxpa yers include agricultural, forestry and marine 
resource businesses "substantially transforming"  natural resources (unprocessed or raw natural 
produce, including timber, wholly derived in or from Fiji)a;  rural manufacturing businesses  (any 
activity listed in Division 3 of the Fiji Standards Industrial Classification) located at least 25 km 
from the GPO in Suva, Lautoka, Nadi, Nausori and Navua;  and info rmation technology (IT) 
businesses, including call centres (ticketing, orderi ng and reservation services), database records 
and list management, data entry and processing, website development and management, software 
programming and design, tele-medic ine, and internet services pr ovision (retailing and wholesaling 
of IT products, and the sale, care, repair or se rvice of any item are excluded).  Extended until 2011 
(2009 Budget).  
Tourism-related businesses  Tourism-related investment receive a 55% investme nt allowance on total capital expenditure in new 
hotels including renovations, refurbishments and exte nsions as well as international retiree facilities 
(Eleventh Schedule, Income Tax Act).  It must be claimed within five years of completing the 
building (any excess can be carried forward for eight years).  Extended to 2009 (2009 Budget).  
Maritime vessels  Investment in constructing maritime vessels  receive a 55% investment allowance.   
Fixed line next generation 
network (NGN) Investment allowance of 60% from 2009 for fixe d line investment in internet protocol and 
broadband core networks (announced in 2009 Budget).  
C. Income tax holidays and exemptions 
Tourism-related activities As an alternative to the investment allowance tourist facilities are e ligible for a tax holiday of 
20 years (full SLIP) or 10 years (half SLIP), introduced in 1996.  It covers construction by end 2008 
of new hotels, retirement facilities and hospital reso rts, with a minimum investment of F$40 million 
(full SLIP) or F$10-40 million (half SLIP), excluding land.  To be replaced in 2009 by 2009 Hotel 
Incentive Package (announced in 2009 Budget), whic h includes a ten-year tax holiday for capital 
investments of at least F$7 million.  Hotel deve lopments in Vanua Levu and the maritime islands 
with minimum 25% Fijian indigenous equity  will receive 20-year tax holiday.   
Table AIII.1 (cont'd) WT/TPR/S/213 Trade Policy Review 
Page 136 
 
 
Sector Details 
Film-making and audio-visual 
activities Tax incentives (Sixth Schedule, Income Tax Act) include income tax exemptions for making F1 or 
F2 audio-visual products, subject to meeting local  content and certain mi nimum local expenditure 
requirements.b  Net income from F1 productions (i.e. made "wholly or substantially" in Fiji with 
"significant" local content is exempt from ta x until the taxpayer receives a 60% return on capital 
(normal tax applies thereafter).c  Net income from F2 productions (i.e. where the entity has secured 
distribution in at least two "significant" in ternational markets and a guaranteed minimum 
investment return is exempt from tax until the taxpayer receives a 50% return on capital (thereafter 
taxed at normal rates).d  Licensed audio-visual producers are exempt from tax on income derived 
from production performed in  a studio city zone (a n area declared by the Minister for the purpose 
of developing infrastructure, services and resour ces for the audio-visual industry and tourist 
attractions, hotels, residential accommodation,  sporting facilities and amusement parks).e  The 
Minister also can exempt or reduce the tax ra te for certain periods income of "qualifying 
employees" where considered expedient fo r developing the film-making industry.f  Approved 
individuals deriving income from audio-visual pr oductions, including wages, fees and royalties, are 
also exempt from tax.  Income from sale of a company or business in a studio city business within 
eight years is taxable at 20% if sold within two ye ars, 15% within four year s, 10% within six years, 
and 2.5% within eight years.  Film tax rebate  of 15% raised to 35% from 2009 (2009 Budget).     
ICT/IT activities 10-year ta x holidays apply to companies located in any ICT Economic Free Zones (temporary 
studio city zones) to develop softwa re or to operate ICT call centres.g  Two zones have been 
declared in Suva (ATH located in Riffle Range, Va tuwaqa, and USP in Statha m Street Vatuwaqa).  
The 2007 Budget declared the Kalabo Tax Free Zone s an ICT zone to enable ICT businesses to 
receive a 10-year tax holiday provi ded they employed at least 50 staff for any six months of the 
financial year and export at least 60% of sale s (operates from January 2007 until end-2016).  ICT 
firms locating outside zones receive income tax exemptions ranging from 80% to 40% depending 
on employee size.h  Anomalies on incentives available insi de and outside the Kalabu Zone to be 
rectified from 2009 and tax holiday extended to 13 years (2009 Budget).     
Agriculture While tax exemptions on agricultural income (including exports) and agricultural contracting 
ceased from 2001, some taxpayers continue to bene fit since the concession applied for any five out 
of eight successive years from commencement of  production.  10-year tax holiday from 2009 for 
investment in commercial agricultural farming and agro-processing, provi ded minimum investment 
of F$2 million and employs 30 or more local employ ees for any six months w ithin the income year 
(2009 Budget). 
Small and micro enterprises (SMEs) From 2006, SMEs in agriculture (sugarcane farming, coconuts, rice, ginger, yaqona, livestock 
raising, vegetable growing, bee keeping, co mmunity and social services, amusement and 
recreational services, and traditional handicraft producers and from 2008 da lo, cassava and other 
root crops), fishing, tourism (sea cruise and river tour operators, sea tour operators) and supportive 
projects are exempt from income tax subject to  a maximum annual turnover threshold of F$300,000 
(increased from F$200,000 from 2008). 
Approved enterprises While authority for the Minister of Fina nce to grant income tax exemptions and concessions to new 
or expanding approved enterprises to assist Fiji’ s economic development (Section 16(2)(b), Third 
Schedule, Income Tax Act) terminated at end-2000,  some approved enterprises continue to benefit 
since the concession applied for a period of five y ears extendable for up to another three years.  The 
tax exemption applies on annual income up to F $8000 or if greater, 15% of the smaller of the 
company’s paid up capital or its total fixed capital investment at the commencement of each of the 
financial years covered in the period specified by the Minister.   
Regional  Tax free region to be established from 2009 (announced in 2009 Budget) in the North and other 
maritime islands (Vanua Levu, Rotuma, Kadavu,  Levuka, Lomaiviti and Lau) allowing a 13-year 
tax holiday (extendable to 18 years if at 25% Fijian indigenous equity) provided initial minimum 
investment of F$2 million.   
Bio-fuels 10-year tax holiday for firms processing agricultural comm odities (e.g. sugar, coconuts and 
cassava) into bio-fuels, provide d minimum investment of F$1 million and employ at least 20 local 
employees for any six months of the income year (2009 Budget).  
Independent power producers 5-year tax holid ay for firms investing in renewable ener gy projects and those pursuing investment 
in power cogeneration provided minimum investment of F$250,000 (2009 Budget). 
Table AIII.1 (cont'd) Fiji WT/TPR/S/213 
 Page 137 
 
 
Sector Details 
D. Special depreciation and deduction provisions  
General The Minister of Finance can grant firms acceler ated depreciation where cons idered in the interests 
of Fiji's economic development on buildings, plant and equipment of 20% annually over five years, 
to be claimed in any five out of the eight consecutive years from wh en the expenditure was 
incurred.  The 2008 Budget also introduced a 150% income tax deduction for expenditure incurred 
in Fiji by a non-resident company carrying on business in Fiji, from profits earned or derived in Fiji 
(excluding motor vehicles, furniture and fittings).   
Tourist-related activities Facilities subject to SLIP or the inve stment allowance may claim a special depreciation allowance 
in each of the fifteen years immediately succeed ing the year of expenditure (excluding land). 
Mining activities New mining industries are subject  to accelerated depreciation of 20% annually. 
Film-making and audio-visual 
activities Capital expenditure on F1 and F2 audio-visual productions are subject to an immediate 150% or 
125% income tax deduction, respectively.  Immedi ate deduction of 200% for contributions to the 
Fiji International Film Festival being held in 2010 (2009 Budget).     
Fishing  From 2006 investors in fisheries receive a 200% income tax deduction on capital expenditure until 
end-2010.   
Agriculture From 2006 investors in ag riculture (primary industries only) receive a 200% income tax deduction 
for capital expenditure until end-2010.  It applies to  land improvements, irri gation schemes cost of 
irrigation as well as the cost of farm implemen ts and plant used on the farm.  New food processing 
firms engaged in value adding activities using at least 50% of local produce (including raw 
materials and labour) can clai m an immediate 100% deduction on capital investment.  Re-
investment for expansion also qualifies.  
Forestry New processing firms in value adding activities using at least 50% of local produce (including raw 
materials and labour) can clai m an immediate 100% deduction on capital investment.  Re-
investment for expansion also qualifies. 
Regional  A 300% deduction on annual capital expenditure (excluding land, buildings , passenger vehicles or 
trading stock) exceeding F$40,0 00 is available from 2006 until end-2010 under the Government’s 
"Look North Policy" for new businesses locating in the Northern island (Vanua Levu) in specified 
sectors, or existing businesses that increase sales by  at least 25% and employ  five new persons from 
2006.  Eligible industries include ICT, agricultu re, forestry, mining, and manufacturing (textiles, 
clothing, footwear, timber manufacturing, fish pr ocessing, ship building a nd maintenance work).  
Direct expenditure by commercial banks on rura l banking programmes is immediately deductible at 
150%. 
Fixed line service A 100% write off from 2009 for investme nt in fixed line (NGN) service (announced in 2009 
Budget). 
E. Other 
Tourist-related businesses Facilities subject to the SLIP or the investment allowance may carry forward losses for up to 
13 years but only against income from that hotel bus iness (standard carry forward of losses is eight 
years). 
Film-making and audio-visual activities As an alternative to other tax incentives, audio- visual producers are entitled to a 15% tax credit or 
rebate on qualifying production expenditure (as under Division 4) incurred in Fiji.  Since 
January 2004, the requirement was minimum sp ending in Fiji of F$250,000 (F$50,000 before 
2004).  If the qualifying Fiji expenditure on the fi lm exceeds F$25 million the maximum allowable 
tax rebate is F$3.75 million.  The claimant of the rebate must have been the sole company either 
carrying out or making the arrangements for carryi ng out all the activities necessary for making the 
film.  If the total qualifying production expendi ture was below F$25 million then the company’s 
total qualifying Fiji production expenditure must be  at least 35% of the firm’s total production 
expenditure on the film.
i  Fiji residents that do not hold a F ijian broadcasting license in radio or 
television or non-residents are eligible.  
Regional Under the Government’s Look North Policy, fi rms in targeted areas located in Vanua Levu are 
entitled to a 200% immediate deduction for all first ti me employees for the first year.  The incentive 
runs from January 2006 until end-2008.  
a "Substantial transformation" means resulting in the good produced having a different HS classification than the raw materials ;  it 
excludes repackaging, rebottli ng and timber logging.   
b  Production activities explicitly include computer software  as well as interactive websites and other e-commerce and 
telecommunications operations for use solely in relation to elig ible audio-visual products.  The development of e-commerce 
websites and e-commerce businesses used solely for audio-vi sual activities are deemed to be audio-visual products. 
c  For an audio-visual production that commenced between 2001 and end-2006, the minimum share of the project’s budget to be 
spent in Fiji was 35% for large format or  feature movies and broad cast television programmes;  45% for direct to video 
programmes or video disc programmes;  and 50% for audio recordings or computer progr ams.  These shares were increased for 
project's commencing from 2007 until  end-2010 to 55%, 75% and 80%, respectively.   From 2011 these shares will be reduced to 
65%, 85% and 80%, respectively. WT/TPR/S/213 Trade Policy Review 
Page 138 
 
 
d Guaranteed minimum level of return from international distribu tion must be from 2001 to end-2006 5% for large format films;  
15% for feature films;  20% for broadcast television program mes;  25% for direct to video programmes or video disk 
programmes;  and 15% for an audio record ing or computer programs.  From 2007 until end-2008 the rates were increased to 
25%, 35%, 40%, 45% and 30%, respectively, and from 2009 a uniform  minimum rate of 45% is to apply to all audio-visual 
productions.  Also, to be eligible, the minimum share of the budge t to be spent in Fiji must be 35% for large format and featur e 
films or broadcast television programmes, 40% for direct to video programmes or video disk  programmes, and 45% for audio 
recordings or computer programs for inve stment between 2001 and end 2 006;  45%, 55% and 60%, respectively, for investment 
from 2007 until end-2010;  and 55%, 65% and 65%, re spectively, for investment from 2011.   
e To be eligible, Fiji citizens and non-citizens must earn audio- visual earnings pre-tax of F$100 ,000 in the year of assessment  and 
hold assets in the zone in that year of at least F$250,000 (including land).  A non-citi zen must be resident in the zone for at  least 
60 days in the assessment year and maintain a permanent place of residence in the zone.  Citizens must be a resident in the zon e 
for at least 183 days in the assessment year, or 60 days if they  derive at least 80% of audio visual earnings from outside Fiji , and 
maintain a permanent place of residence in the zone.   
f Non-resident employees of a film company that  are in Fiji under contract to make a film.  
g ICT businesses include call centres (ticketing, ordering and rese rvation services), data base records and list management, da ta 
entry and processing, web site developmen t and management, software programming and design, tele-medicine services, internet 
services but not the retailing and wholesaling of IC produc ts and the sale, care, repair or service of any item. 
h Firms employing at least 101 employees recei ve an exemption of 80% of their income, employing at least 60 to 100 60%, and 
from 10 to 59 employees 40%.   
i  Where the firm's total qualifying expenditure on the film wa s at least F$25 million, the company must have carried out or 
arranged to be carried out all the activities in the Fiji Islands that were necessary to make the film.    
Notes: Includes measures announced in the 2009 Budget, which are generally scheduled to operate from 2009.  
Source:  Ministry of Finance and National Planning (2008), Economic and Fiscal Update: Supplement to the 2009 Budget 
Address , November, pp. 1115.  Viewed at:  http:// www.mfnp.gov.fj/Documents/ 2009_Budget_Supplement.pdf, 
and information supplied by the Fijian authorities. 
 
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