In the 2011 Budget announcement Capital Gains Tax (CGT) was introduced as a new tax in Fiji effective from 1st May 2011.
The rate of Capital Gains Tax is 10%.
Capital Gains Tax is a tax imposed on a person who has made a capital gain, other than an exempt capital gain, on the disposal of a Capital Asset.
Capital Gain is a gain made by a person on the disposal of a Capital Asset. The method of calculating the amount of gain is fairly straightforward with few adjustments. It is the consideration received on the disposal reduced by the cost of the asset at the time of the disposal.
CGT cannot be offset against tax losses under Income Tax Act. Nor can a capital gain made by a person on disposal of a Capital Asset be reduced by any capital loss on disposal of another Capital Asset.
Some differences apply between Fiji citizens and Foreign investors, in particular to Capital Assets and Fiji assets.
The major difference between Capital Assets and Fiji Assets is that Capital Assets are those assets which are owned by residents and are subject to CGT while Fiji assets are those which are owned by non-residents and subject to CGT for assets owned in Fiji only.
