FTIB Lauds Repeal Of Branch Profit Tax

November 27, 2009 8:38 a.m. EST

Suva, Fiji (AHN) - The Fiji Government's decision to repeal Branch Profit Remittance Tax from next year has been welcomed.

The announcement was made by the Finance minister and Prime Minister Commodore Voreqe Bainimarama in his 2010 national budget address earlier today.

"My Government will continue to support foreign investment by reducing barriers to investments.

"Accordingly, Government will repeal the Branch Profit Remittance Tax for the repatriation of profits derived in 2010 and beyond," he said.

Also, the 150 percent tax deduction on capital expenditure for reinvestment of profits in Fiji by a non-resident company will be removed.

Fiji Islands Trade and Investment Bureau chief executive officer Annie Rogers told AHN, "the budget was a good one."

"I'm particularly happy with the repealing of the branch profit taxes, which we've had investors telling us about all the time.

"Now that that's been repealed, we should expect more investors to Fiji," she told AHN media.

She also commended Government's initiative in recognizing the potential of the pearl farming industry for the export market, value adding and the positive impact on rural livelihoods, where fiscal duty will be reduced to 3 percent from 32 percent on raw materials used for farming of pearls.