Tax Relief Measures for 2021/2022 Issue#1 2022
Targeted Groups: Tax Payers (Individuals and Businesses)
- Extension of due dates for lodgment and payment of tax returns (Consumption Tax (CT), Income tax, Pay as You Earn tax (PAYE), Small Business Tax (SBT), Resident Withholding tax, Non-resident withholding tax) due in March 2022 to 30th May 2022 with no administrative penalties incurred.
This policy was passed in March 2022 aiming to alleviate the financial constraints faced by taxpayers as a result of the COVID-19 pandemic and required national lockdown. Taxpayers who are incapable of making lodgments and payments due to the COVID-19 disaster benefits from this temporary relief without incurring penalties.
Effective date
Immediately and will end on the 30th May 2022.
- Provision of flexible terms of payment and restructuring of approved payment schedules of tax liabilities
MoRC stands ready to liaise with taxpayers who have difficulties in keeping up with tax payments by approving of payment plans and restructuring of current payment schedules.
Effective date
Immediate
- Immediate action to expedite the processing of CT refunds
MoRC is working to fast tack CT refunds for taxpayers who have applied and are in a net refund position to immediately assist businesses with their cash-flow.
Effective date
Immediate
- Extension of COVID-19 relief
Exemption of import duty and CT for private imports of food items, personal consumer goods not for commercial purposes. Moreover, exemption of import duty and taxes for all import of all building materials for the constructions of private dwellings, community project buildings and education project buildings.
Effective date
Till June 2022
- Exemption of Import duty and CT for private imports under the Hunga Tonga Hunga Haápai (HTHH) Volcanic Eruption Assistance.
All private imports under the HTHH Volcanic Eruption Assistance will be processed under exemption clearance through Customs side-line process. All importers must seek approval from the Nation Emergency Management Office (NEMO) under MEIDECC, prior to Customs application of the exemption on imported goods.
Effective date
6 months from the date of the HTHH eruption
