Double Taxation Agreements To Be Reviewed By FRCA
Fiji is looking at reviewing its existing taxation agreements with other countries in the coming months.
Fiji Revenue and Customs Authority chief executive, Jitoko Tikolevu, said these reviews are long overdue.
As a consequence, negotiations for the review of Fiji’s Double Tax Agreement (DTA) with Malaysia was completed this week.
Fiji has an existing DTA with Malaysia which was signed in 1995.
A team of senior officials from the Malaysian tax regime met with officials from the Fiji Revenue and Customs Authority over a two day period.
The Malaysian team was led by Madam Dato Ismail, the under Secretary of Tax Division, Ministry of Finance, Malaysia.
The team also included Madam Eng Choon Meng, Director International Tax Department, Inland Revenue Board Malaysia and Madam Harizan Hussin, Principle Assistant Secretary, Tax Division, Ministry of Finance, Malaysia.
Mr Tikolevu said one of the major benefits of having such an agreement is the avoidance of double taxation, where a taxpayer pays taxes both in Fiji and in Malaysia.
“Investors will be able to know the exact tax implication of their investment in either country as the DTA clearly spell out the withholding tax rates, treatment for interest, dividend or royalty,” Mr Tikolevu said.
“The DTA also clearly defines the rule for taxing in both countries.”
Mr Tikolevu said investors often look at the tax regime of a country before deciding to invest.
“Therefore, having a DTA is an incentive on its own by attracting foreign investments. It provides certainty to the new investor,” he stressed.
“The DTA has a lot to offer and we can gain a lot from it in terms of new economic opportunities.”
Economic co-operation
Head of the Malaysian Delegation, Ms Ismail was happy with the smooth conclusion of the negotiations.
She said the amendments to the agreement will promote economic co-operation, bilateral relations and increased investment in both countries.
“I am looking forward to welcome the Fiji delegation for the signing of the treaty in Malaysia,” Ms Ismail said.
Both parties have agreed for the signing of the revised agreement to be held within three to four months.
The revised agreement will signed by the Ministers for Finance of both countries.
