Taxes in Kiribati

The main legal framework consists of the Income Tax Act 2023, Revenue Administration Act 2013, VAT Act 2013 and its regulations, Excise Tax Act 2013, Customs Act 2019 and the Import Levy Fund (Amendment) Regulations 2025. The Office of the Auditor-General provides tax Acts and regulations, while the Internal Revenue Board and the Commissioner handle assessment and administration. Tax services are concentrated in Bairiki on South Tarawa and in Ronton on Kiritimati; no separate regional or municipal tax structure has been evidenced for Kiribati. An individual is generally tax resident when they have a permanent home in Kiribati, are physically present in Kiribati for at least 183 days in any 12-month period that begins or ends in the tax year, or are a Kiribati citizen serving abroad as a consular or diplomatic officer. A resident is taxed on worldwide income. A non-resident is taxed on income sourced in Kiribati. The source and status rules can affect employment, business, property and overseas income differently. For a resident individual, chargeable income up to AUD 5,000 is taxed at 0%. Income from AUD 5,001 to AUD 15,000 is taxed at 20% on the amount above AUD 5,000. Income from AUD 15,001 to AUD 30,000 is taxed at AUD 2,000 plus 25% of the amount above AUD 15,000. Income above AUD 30,000 is taxed at AUD 5,750 plus 30% of the amount above AUD 30,000. A non-resident individual generally faces a 30% rate, while chargeable property income of an unmarried minor can be subject to a maximum rate of 30%. Residents may claim a foreign tax credit for foreign income, limited to the amount of Kiribati tax attributable to that foreign income. Foreign-tax certificates are required, and business income and other income are calculated separately for this relief. A tax return can include employment, business, property, partnership, trust and overseas income. Business and property losses can generally be carried forward for up to three years under the return instructions. Resident companies pay 20% on chargeable income up to AUD 25,000. From AUD 25,001 to AUD 50,000, the calculation is AUD 5,000 plus 30% of the amount above AUD 25,000. Above AUD 50,000, the calculation is AUD 12,500 plus 35% of the amount above AUD 50,000. A non-resident company generally pays 30%. Associated companies with combined chargeable income above AUD 50,000 can be assessed using a common average rate applied to each company’s chargeable income. A special rule can apply to a government-controlled company. A non-resident company with a permanent establishment in Kiribati can face an additional tax on repatriated profits. Foreign companies and contractors can also have Kiribati-source income subject to withholding. A double-tax agreement may change the result, so treaty rules should be checked for relevant arrangements, particularly involving the United Kingdom, Australia or Taiwan. VAT is a 12.5% tax on taxable supplies. A business generally applies for VAT registration when its taxable turnover exceeded AUD 100,000 during the previous 12 months or is expected to exceed that amount during the next 12 months. Taxable, zero-rated and exempt supplies have different effects. Exempt supplies do not normally create a VAT registration requirement or input-tax credits. For mixed supplies, input credit is 100% for taxable-only activity, 0% where more than 80% of supplies are exempt, 100% where less than 20% are exempt, and proportionate between those limits. Imported goods and services can also fall within VAT rules. A foreign supplier of electronic goods, remote services or services distributed through an electronic platform can use a simplified VAT return. A foreign supplier without a fixed place of business can require a VAT representative. A registered business displays its VAT certificate and issues a tax invoice marked “TAX INVOICE” with the date, serial number, supplier and recipient names and addresses, their TINs, a description of the supply, the price and VAT. VAT operates through self-assessment, with quarterly returns and payment due within 15 days after the quarter ends. A Tax Identification Number (TIN) identifies an individual or company in tax dealings. PAYE, meaning pay-as-you-earn, is the employment-tax withholding handled by an employer. WTH, meaning withholding tax, is deducted by a payer and remitted to the tax authority. An employer deducts employment tax from salary payments, and a principal generally deducts WTH from contractor payments. A local contractor or firm commonly faces 5% WTH and, where applicable, 12.5% VAT. Contract services or technical fees paid to a non-resident commonly carry 15% WTH. Non-resident business income can fall under a rate matrix including 15% or 5% where the recipient has stayed at least 183 days in a 12-month period, while non-resident employment is generally taxed at 30%. A treaty exception should be checked before applying a domestic withholding rate. Individuals and companies obtain a TIN by submitting an application and identity evidence. A business may also need a Business Certificate from the Ministry of Trade, Industry and Cooperatives or a Foreign Investment Certificate, together with a Business Operating Certificate from the relevant Island Council. VAT registration uses the TIN and a VAT application. A tax agent may act for the taxpayer. The application is free, and the Invest Kiribati guide indicates processing can take up to three days. An individual, sole trader, partnership or co-operative generally files an income-tax return by 31 March. A company generally files within three months after the end of its financial year. Provisional tax is paid in three instalments, each calculated as 27.5% of the last tax liability, due on 31 July, 31 October and 31 January. Assessed income tax is payable within 30 days after the service date on the notice of assessment. A written extension request should reach the authority before the filing deadline. Late filing attracts AUD 30 per month. Late payment can attract a 15% charge, and late interest is 15% per year. A tax shortfall can attract a penalty of 20% or 75%, depending on the case. A false or misleading statement can lead to a fine of up to AUD 5,000, imprisonment for up to two years, or both. Tax records should be retained for at least seven years. The authority can issue a default assessment, serve a garnishee notice, require a security bond or deposit, seize imported goods for unpaid VAT or excise tax, restrict departure until payment or an instalment agreement, temporarily close a business after repeated non-filing and bring a recovery suit. These measures can affect cash flow, travel and the ability to continue operating. A taxpayer can make a written objection to the Internal Revenue Board within 60 days after service of an assessment. An appeal to the Tribunal generally follows within 90 days, and an appeal to the High Court generally follows within 60 days after the Tribunal decision. The January 2026 Tax Obligation Pamphlet describes these periods, but the applicable Act and current Office of the Auditor-General version take priority in an individual case. The Customs Comptroller controls cargo and movement of persons at the border. Imports can involve customs valuation and import duty as well as VAT, excise tax and the Import Levy. Import Levy and tariff rates changed during 2025, so the current rate should be checked against the specific goods and HS code with the Ministry of Finance and Economic Development or Customs Division. Domestic tax registration, VAT compliance, withholding, annual returns and import clearance are separate obligations and can apply together.