Non-Profit Organisations (NPOs) play an important role in Fiji’s society – supporting education, religion, sports, welfare, and community causes. Fiji’s tax laws grant tax exemptions for certain NPO income, allowing them to maximise their social impact.

However, tax exemptions do not apply to business income or property income earned by NPOs. 

Recent changes to the Income Tax  Act 2015 clarify that:

• Income (other than business income) derived by a non-profit organization (NPO) is an exempt income.
• Property income earned by NPOs will be taxable.

This ensures fairness, as NPOs engaged in commercial activity should pay their fair share of tax — just like other businesses. However, many NPOs remain unaware of these rules or continue to incorrectly claim full exemption.

Current Compliance Gaps:

• Many NPOs earning business or property income are not filing Corporate Income Tax (CIT) returns.

• Some NPOs are under-reporting or misclassifying income.

• NPOs filing VAT indicates significant business activity

Non-Profit Organisation’s Trend Analysis

The graph illustrates a concerning downward trend in lodgement compliance, which significantly dropped from 67.4% in 2022 to 56.4% in 2024. Conversely, the revenue contribution from this sector has fluctuated, initially decreasing from 3.1% in 2022 to 2.6% in 2023, but then rebounding to 3.4% in 2024. Geographically, the majority of Non-Profit Organizations (NPOs) are registered in the Suva Branch, while the Rotuma Branch has the fewest registrations. Lastly, Only 2% of the total taxpayer population is actively contributing.

Risk Areas and Mitigation Strategies

We are committed to safeguarding revenue integrity by addressing compliance risks associated with Non-Profit Organizations.

Risk Area	Description	FRCS Mitigation Strategy
Lack of knowledge on Taxable Income	Many NPOs still believe all their income is tax exempt.	Public awareness campaign; targeted stakeholder engagement.
Non-filing of Income Tax returns	Many NPOs with business or property income are not filing Income Tax returns.	Publish SIG guidance; offer voluntary disclosure window; targeted audits.
Incorrect income classification	Some NPOs are incorrectly reporting business or property income as exempt.	Targeted education and post-audit reviews; data matching with VAT filings.
Revenue leakage from NPO commercial activities	Commercial income has been untaxed for years, eroding the tax base.	Audit program focused on high-risk NPOs; ongoing monitoring post-audit.
Revenue leakage from NPO commercial activities	Commercial income has been untaxed for years, eroding the tax base.	Audit program focused on high-risk NPOs; ongoing monitoring post-audit.
Concession and Incentive Abuse	Abuse of concessions while operating   commercially beyond scope.	Publish Standard Interpretation Guidelines (SIGs);   use risk engine profiling and conduct sector-specific audits.
Not Registered for the Right Tax   Type	NPOs engaged in taxable activities but   fail to register for the appropriate tax type.	Strengthen public awareness through   targeted campaigns; provide simple clear guidance (SIGs);   encourage voluntary registration via TPOS and direct outreach.

Last Updated - July 17, 2025