The Government's 2014 Fiji Budget (Budget)
was presented by the Prime Minister and Minister for Finance,
Strategic Planning, National Development and Statistics, Commodore
Voreqe Bainimarama on 8 November 2013 with the theme "Building
a Smarter Fiji".
As a potential investor into Fiji (or an existing investor) here
are just some of the exciting changes introduced in the Budget
effective from 1 January 2014 that might be of interest to you.
The South Pacific Stock Exchange (SPSE) has remained stagnant
for a number of years, failing to attract listings from successful
businesses around the region. With the aim of developing Fiji as a
financial hub, the Budget has introduced some significant
advantages to those who may be interested in listing on the SPSE
and those who are already listed.
Corporate taxes for companies listed on the SPSE will be reduced
from 18.5 % to 10%. This will be applicable to all companies across
the board (we are still waiting on confirmation from FRCA on
whether companies will need to satisfy the 40 % local shareholding
requirement in order to obtain such attractive corporate taxes but
initial inquiries suggest that the tax rate will apply across the
Any trading of shares on the SPSE will be exempt from any Income
Tax and Capital Gains Tax which will also encourage active trading
on the SPSE.
All consequential gains arising from any restructure,
reorganisation or amalgamation of private companies for the purpose
of listing on the SPSE will be exempt from any taxes.
Check out our previous article
here on the draft Companies Decree 2013 which is expected to be
implemented before February 2014 and
here for a summary of the recent changes to the foreign
investment legislation in Fiji which will also make doing business
in Fiji even easier.
The corporate tax rate of 17 per cent for a company that moves
its regional or global headquarters to Fiji will remain in effect
next year. ANZ has already moved its Pacific headquarters to Suva
and it is expected that more will follow.
In 2014, the Government proposes to make several major
investments in the trade area that will reap big benefits for Fiji.
Among these are initiatives to boost trade with Papua New Guinea,
New Caledonia and Australia.
A Fijian Trade Commissioner in PNG will be appointed to take
advantage of the opportunities between Fiji and PNG. The Government
will also allocate further funding to boost trade with the
Melanesian Spearhead Group generally, to take advantage of the
increasing the scope of the MSG trade agreement, which will include
services and the temporary movement of people.
The Government are also allocating funds for an MSG Investment
Road Show and Trade Fair and for an MSG Trade Ministers and
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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The TPP could have a significant positive impact on the investment and financial services of Australia and Singapore.
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