Verified Facts
The tax rates in Samoa range from 0% to 27% for individual income, with a corporate tax rate of 27% and a value-added tax (VAT) rate of 15%.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Samoa has a territorial tax system, which means that only income earned within Samoa is subject to tax, except for certain types of income that are taxed on a worldwide basis, such as income earned by Samoan residents from foreign sources. Residency rules for tax purposes in Samoa are based on the number of days spent in the country, with individuals who spend more than 183 days in a 12-month period considered tax residents. This means that expats and foreign workers who live and work in Samoa for an extended period may be subject to tax on their worldwide income.
The tax system in Samoa is relatively straightforward, with a focus on simplicity and ease of compliance. The Samoa Revenue Office is responsible for administering the tax system and providing guidance to taxpayers. The tax year in Samoa runs from January to December, and taxpayers are required to file their tax returns by the end of April following the end of the tax year. Taxpayers who fail to file their tax returns on time may be subject to penalties and interest.
Personal Income Tax
| Income Bracket (WST) | Tax Rate |
|---|---|
| 0 - 15,000 | 0% |
| 15,001 - 30,000 | 10% |
| 30,001 - 50,000 | 15% |
| 50,001 - 80,000 | 20% |
| 80,001 and over | 27% |
Personal income tax in Samoa is subject to a progressive tax system, with higher income earners paying a higher tax rate. Taxpayers are entitled to various deductions and allowances, including a personal allowance of WST 15,000, as well as deductions for mortgage interest, charitable donations, and medical expenses. Taxpayers are required to file their tax returns using the self-assessment system, which means that they are responsible for calculating their own tax liability and paying any tax due by the end of April following the end of the tax year.
Corporate & Business Tax
- The corporate tax rate in Samoa is 27%, which applies to all companies that are tax resident in Samoa.
- Small businesses with an annual turnover of less than WST 500,000 may be eligible for a reduced tax rate of 10%.
- Samoa has several free zones that offer tax incentives and other benefits to companies that operate within these zones.
- Companies that are tax resident in Samoa are required to register with the Samoa Revenue Office and obtain a tax identification number.
- Companies that fail to register or file their tax returns may be subject to penalties and fines.
VAT / Sales Tax
- The standard VAT rate in Samoa is 15%, which applies to most goods and services.
- A reduced VAT rate of 0% applies to certain basic food items, such as bread, rice, and vegetables.
- Exemptions from VAT apply to certain goods and services, such as healthcare and education services.
- Tourists who purchase goods in Samoa may be eligible for a tourist refund scheme, which allows them to claim a refund of VAT paid on certain goods.
For Expats & Foreign Workers
- Expats and foreign workers who are tax resident in Samoa are subject to tax on their worldwide income, including income earned from foreign sources.
- Samoa has double taxation treaties with several countries, including Australia, New Zealand, and the United Kingdom, which can help to reduce the risk of double taxation.
- Expats and foreign workers who are tax resident in Samoa are required to register with the Samoa Revenue Office and obtain a tax identification number.
- Expats and foreign workers may be eligible for a foreign tax credit for tax paid in their home country on foreign-source income.
- Expats and foreign workers who are tax resident in Samoa may be required to make social security contributions, which can provide access to certain benefits, such as healthcare and pensions.
- Expats and foreign workers who remit income to their home country may be subject to remittance rules, which can affect the tax treatment of these payments.
Crypto & Investment Income
- Investment income, such as dividends and interest, is subject to tax in Samoa, and is included in the taxpayer's taxable income.
- Cryptocurrency is considered a capital asset for tax purposes, and gains from the sale of cryptocurrency are subject to tax as capital gains.
- Taxpayers who earn income from foreign investments may be subject to tax on this income, and may be eligible for a foreign tax credit for tax paid in the foreign country.
- Taxpayers who invest in Samoan assets, such as real estate or shares in Samoan companies, may be eligible for tax incentives, such as a reduced tax rate or exemption from tax.