FIJI ISLANDS

INCOME TAX (AMENDMENT) ACT 2005

ACT NO. 18 OF 2005

I assent.

[L. S.]

J. I. ULUIVUDA
President

[9 November 2005]

AN ACT

TO AMEND THE INCOME TAX ACT

ENACTED by the Parliament of the Fiji Islands-

Short title

1. This Act may be cited as the Income Tax (Amendment) Act 2005.

Section 21 amended

2. Section 21(1) of the Income Tax Act (Cap. 201) is amended in paragraph (z) by substituting the full stop with a semi-colon at the end and by adding the following paragraphs-

"(za) three times the amount of capital expenditures spent on any new business set up from 1st July 2005 to 31st December 2010 on the island of Vanua Levu. For the purpose of this paragraph-

"qualifying capital expenditure" means expenditure of an amount not less than $40,000 incurred for the purpose of acquiring a capital asset for use in the carrying on of an investment activity but does not include land or buildings, passenger vehicles or trading stock;

"an investment activity" means information communication and technology, agriculture, forestry, mining, manufacturing, textile, clothing and footwear, timber manufacturing, fishery manufacturing or ship building;

(zb) two times the amount of any wages or salaries paid from 1st January 2006 to 31st December 2008 by any person carrying on a trade or business on the island of Vanua Levu to a qualifying employee. The requirements under paragraph (r)(i)(aa) to (cc) apply to this paragraph.".

3. Section 21B of the Income Tax Act (Cap 201) is amended by inserting after subsection (5) the following subsection-

"Deduction for Vanua Levu

(6) In determining total income, a 100% deduction for export income derived from new business established on the island of Vanua Levu between 1st July 2005 and 31st December 2010 shall be allowed in accordance with this section. The requirements specified under subsections (3) to (5) apply to the determination of deduction under this subsection.".

Passed by the House of Representatives this 21st day of September 2005.

Passed by the Senate this 26th day of October 2005.

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