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Cook Islands: Domestic Taxation

Income Tax

Income tax is payable by those residing and working in the Cook Islands and is levied on a sliding scale as follows:

  • NZD0 to NZD10,000 - Exempt
  • NZD10,001 to NZD30,000 - 25%
  • NZD30,001 and above - 30%

N.B. The NZD10,000 exemption is for a full year of residence in the Cook Islands. The exemption is apportioned to days resident for individuals who have not been resident for a full year. Non residents do not receive the exemption, the rate of tax on earnings derived in the Cook Islands is 20 cents in the dollar for the first NZD4000, 25 cents in the dollar between NZD4001 and NZD24,000 and 30 cents in the dollar for every dollar over NZD24,000 pa.

Trust income tax rates are as follows:

  • NZD0 to NZD4,000 - 20%
  • NZD 4,001 to NZD24,000 - 25%
  • NZD24,001 and above - 30%

Provisional tax is required to be paid by any taxpayer who in any income year derives assessable income other than from source deduction payments and their tax payable on the assessable income is over NZD1,000.

Payments of provisional tax are due in two equal installments during the income year. On a standard balance date of December 31 the installments are due on June 1 and December 1 respectively. The total amount of provisional tax payable is the terminal tax calculated in the preceding year, however provisional tax can be estimated in some circumstances.

 

 

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