Taxation in Tonga
What is taxation like in Tonga?
Please note: all rates were correct at January 2017!
Individual Income Tax
Earnings Amount per annum Tax rate
$0 – $7,400 0%
$7,401 – $30,000 10%
$30,000 and above 20%
Company Tax
All resident and non-resident companies are subject to a 25% tax.
Non-residents receiving income in Tonga
are subject to taxes based on the source:
Source of Income Tax rate
Insurance premiums 5%
Rent 7½%
Independent Services 10%
Interest, dividends, royalties, and management fees 15%
For non-resident shipping, airline companies, and charters,
a tax is 3% of gross income from goods leaving Tonga is imposed.
Consumption Tax
There is a broad-based consumption tax of 15% for all businesses with turnover above T$100,000
(apart from agricultural producers, who are exempt).
Other Taxes
All lease agreements for land or buildings are subject to a 1% duty on annual rental.
Also, the transfer of any lease or sub-lease of land and the sale of any buildings, fences, growing crops, or livestock is subject to a tax of 10% of the purchase price.
For further information:
Inland Revenue Department
Queen Salote Ex-Students Center
P.O. Box 502, Railway Road
Nuku’alofa, Tonga
Phone: (676) 23 444
Fax: (676) 26 638
Email: inforev@revenue.gov.to
Website: Ministry of Revenue (currently not accessible)
Please note: all rates were correct at January 2017!
Individual Income Tax
Earnings Amount per annum Tax rate
$0 – $7,400 0%
$7,401 – $30,000 10%
$30,000 and above 20%
Company Tax
All resident and non-resident companies are subject to a 25% tax.
Non-residents receiving income in Tonga
are subject to taxes based on the source:
Source of Income Tax rate
Insurance premiums 5%
Rent 7½%
Independent Services 10%
Interest, dividends, royalties, and management fees 15%
For non-resident shipping, airline companies, and charters,
a tax is 3% of gross income from goods leaving Tonga is imposed.
Consumption Tax
There is a broad-based consumption tax of 15% for all businesses with turnover above T$100,000
(apart from agricultural producers, who are exempt).
Other Taxes
All lease agreements for land or buildings are subject to a 1% duty on annual rental.
Also, the transfer of any lease or sub-lease of land and the sale of any buildings, fences, growing crops, or livestock is subject to a tax of 10% of the purchase price.
For further information:
Inland Revenue Department
Queen Salote Ex-Students Center
P.O. Box 502, Railway Road
Nuku’alofa, Tonga
Phone: (676) 23 444
Fax: (676) 26 638
Email: inforev@revenue.gov.to
Website: Ministry of Revenue (currently not accessible)
