Vanuatu: Domestic Corporate Taxation
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Information: Business, Taxation and Offshore
In this section:
- Domestic Corporate Taxation
Domestic Corporate Taxation
Vanuatu there are no taxes on profits, dividends or income;
there is no capital gains tax, no withholding tax and no sales
tax (this was replaced by a value-added tax in 1998). The
main taxes impinging on companies are import and export taxes,
and the business licence tax.
Import taxes vary
widely according to the type of goods; export tax is 5% on
licence is issued annually and may be subject to certain conditions.
The licence is transferable and is subject to an annual fee
which ranges from VT20,000 to VT1m.
in the financial and monetary sectors, including insurance
companies and agents, are charged on the basis of 2% of estimated
turnover. Most offshore businesses are exempt from some or
all of these imposts (see Offshore
Legal and Tax Regimes).
of Company for details of annual capital duties payable
depending on status.
are no State social security contributions as such, employees
and employers contribute 6% of salary each to an approved
superannuation scheme, usually the Vanuatu National Provident
1998, the need for Vanuatu to broaden its tax base led to
the introduction of a Value Added Tax (VAT). It replaced the
then Sales Tax and the ad valorem Business Licence fee and
made Vanuatu less dependent upon revenue collected on international
trade. As of 2005, VAT was levied at 12.5% and raised approximately
37% of Government’s revenue.
Added Tax Act No.12 of 1998 requires any entity in Vanuatu
carrying on a “taxable activity” with a turnover
of at least VT 4 million to register for Value Added Tax.
A “taxable activity” is defined as any activity
(personal, professional, corporate or otherwise) carried on
continuously or regularly involving the supply of goods or
services to any other person for a consideration.
are several exemptions to VAT, including any activity carried
on by a company registered under the International Companies
Act No.32 of 1992. Such companies, instead, pay a business
licence fee based on 5% of turnover. Also exempted are any
engagement, occupation, or employment under any contract of
service or as a director of a company. There is also no VAT
on the making or supply of goods or services, which are already
exempt under the Act.
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Vanuatu Information: Business, Taxation and Offshore