🇻🇺 Vanuatu Tax Guide — Income, Corporate & VAT Rates

The tax rates in Vanuatu range from 0% to 25% for personal income, with a corporate tax rate of 25% and a value-added tax (VAT) rate of 13%.

Tax System Overview

Vanuatu has a territorial taxation system, which means that only income earned within the country is subject to tax, regardless of the individual's or company's tax residency status. This system is beneficial for individuals and companies who earn income from foreign sources, as it is not subject to tax in Vanuatu. To be considered a tax resident in Vanuatu, an individual must have been present in the country for at least 6 months in a calendar year. Companies are considered tax residents if they are incorporated in Vanuatu or have their central management and control in the country.

The tax system in Vanuatu is relatively simple, with a limited number of tax rates and exemptions. The country has a double taxation agreement with several countries, including Australia, New Zealand, and the United Kingdom, to prevent double taxation of income earned by individuals and companies. Vanuatu also has a tax information exchange agreement with several countries, which allows for the exchange of tax information between countries to prevent tax evasion.

Personal Income Tax

Corporate & Business Tax

• The corporate tax rate in Vanuatu is 25%, which applies to all companies, regardless of their size or type.
• Small business incentives are available for companies with an annual turnover of less than VUV 10 million, which includes a reduced tax rate of 20%.
• Vanuatu has several free zones, which offer tax exemptions and other incentives for companies that operate within these zones.
• Companies are required to register with the Vanuatu Revenue and Customs Service within 14 days of commencing business.
• Companies must also file annual tax returns and pay any tax due by June 30th of each year.

VAT / Sales Tax

• The standard VAT rate in Vanuatu is 13%, which applies to most goods and services.
• A reduced VAT rate of 5% applies to certain goods and services, such as basic food items and accommodation.
• Exemptions from VAT are available for certain goods and services, such as financial services and education.
• A tourist refund scheme is available for international visitors, which allows them to claim a refund of VAT paid on certain goods and services.

For Expats & Foreign Workers

• Tax residency rules apply to individuals who are present in Vanuatu for at least 6 months in a calendar year.
• Vanuatu has double taxation treaties with several countries, including Australia, New Zealand, and the United Kingdom, to prevent double taxation of income earned by individuals.
• Social security contributions are not required for foreign workers in Vanuatu.
• Remittance rules apply to foreign workers who remit income from Vanuatu to their home country.
• Foreign workers are required to obtain a tax clearance certificate before leaving Vanuatu.
• Foreign workers may be eligible for a tax exemption on certain types of income, such as foreign-sourced income.

Crypto & Investment Income

• Investment income, such as dividends and interest, is subject to tax in Vanuatu.
• Cryptocurrency is considered a capital asset and is subject to tax on any gains realized from its sale.
• Dividends received from foreign companies are subject to tax in Vanuatu, unless a double taxation treaty applies.
• Capital gains tax is included in the individual's taxable income and is subject to tax at the applicable tax rate.