The Income Tax (Withholding Tax) Regulations 2013
(Regulations) detail the responsibilities of
employers with regards to the withholding of tax from employment
It was announced in the 2013 budget that PAYE would be a final
tax - meaning, in effect, that those whose income comprised solely
of employment income would not be required to file a tax
The Regulations, which were gazetted on Friday 22 November
repealed the Income Tax (Employment) Regulations;
had a commencement date of 1 January 2013; and
provided employers and employees with a four month period (from
the date of publication in the Gazette) to comply with the
By way of Public Notice, the Fiji Revenue & Customs
Authority has extended the deadline for the lodgement of PAYE FINAL
Employer Monthly Summaries (EMS) from March 31,
2014 to April 30, 2014.
As an employer, here are some things you should know
about deducting and paying PAYE:
The Regulations provide that an employer must register with FRCA
within 30 days from commencement of the trade, business, profession
or vocation, or be liable to a fine not exceeding $1000 or
imprisonment of up to six months, or both. Registration is by way
of IRS001 or IRS003.
There is no requirement for existing employers to
Employee Tax Code Declaration
An employee must file a tax code declaration (IRS458A)
(TCD) with the employer within 5 working days from
the commencement of employment. The TCD is not required to be
lodged with FRCA.
If the employment is the employee's primary employment, the
employee files a 'P' TCD. If the employment is the
employee's secondary employment, the employee files an
'S' TCD. The Regulations set out the various formulae for
the deduction of tax in 'P' and 'S' categories.
As an employer, if you do not receive a TCD from your employee
within the 5 days, you must deduct tax at the rate of 20%.
An employee with one or more 'secondary employments' may
apply to FRCA for a Special Tax Rate.
The withholding tax rates under section 17A of the Act continue
to apply to redundancy payments.
Taxes withheld by an employer for a month must be paid to FRCA
and accompanied by a Remittance Advice Slip (prescribed FRCA form)
by the end of the month following the month for which the
deductions relate. The employer must submit an EMS in the approved
In the event the employer pays an employee an amount that is
likely to increase or decrease the amount of withholding tax to be
remitted to FRCA, an employer may make the necessary adjustments
during a payment period during the tax year.
Employers must deduct PAYE FINAL from wages paid to non-resident
employees in the same way as for resident employees. However, there
are non-resident tax rates that apply to non-residents. The most
up-to-date non-resident tax rates are available on the FRCA
A resident, as defined under the Act, means a person, other than
a company, who resides in Fiji, and includes a person—
whose domicile is in Fiji, unless the Commissioner is satisfied
that his permanent place of abode is outside Fiji;
who has actually been in Fiji, continuously or intermittently,
during more than one-half of the income year, unless the
Commissioner is satisfied that his usual place of abode is outside
Fiji and that he does not intend to take up residence in Fiji.
A non-resident is liable for Fiji tax on income for personal
services performed in Fiji, and other income from Fiji sources.
How to make payments?
You can make payments:
through internet banking (Bill Pay Services)
at a local bank branch;
at FRCA's Customer Service Centres;
by using FRCA's drop box (cheques only); or
by credit card (a processing fee applies for each
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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