Exemptions

What are the exemptions available to Salary and Wage earners?

Salary and Wage earners are entitled to the following exemptions:

Pension

Pension Income is not subject to income tax. This includes all pensions paid by the Fiji National Provident Fund (FNPF), the Fiji Government or any other fund approved by the FRCS CEO.

  • Lump sum payment – A lump sum payment is a payment made to compensate an employee for changes to his/her conditions of service. It includes payments made on retirement but does not include redundancy payments. The criterion for exemption is that a maximum of up to FJ$5,000 is allowable if the following conditions are met:
    • it must not be contractual.
    • if the payment is made on retirement, then it is only allowable.
    •  if the person is not a member of the FNPF or an Approved Superannuation Fund.
  • Redundancy Payment – a redundancy payment is made to compensate an employee for loss of employment due to restructuring or downsizing in an organization. In accordance with the Income Tax (Exempt Income) Regulations 2016, Part 3(2)(a), employees are eligible for a tax exemption of up to $15,000. Any amount in excess of $15,000 must be added to the employee’s employment income and taxed accordingly.  These cases must first be referred to FRCS for approval. For more information, Click here.
  • Dividend – Dividend income received by an individual is exempt from tax if it is paid out of retained earnings that have been taxed at the corporate level. Dividends received from the Unit Trust of Fiji, all companies listed on the South Pacific Stock Exchange, Colonial First State Income and Growth Fund, Colonial First State Income Fund, , Fijian Holdings Unit Trust, Fijian Holdings Property Trust Fund or from a company incorporated in Fiji provided it has been subjected to non-resident dividend withholding tax and is received by a  non-resident are tax free.

Dividend

Dividend Income received from parties other than those listed above is fully exempt only if already taxed at corporate level. Otherwise, a determination will be made by the FRCS CEO  on the amount to be taxed further in the hand of the recipient. If you have returned income from dividends and are entitled to a deduction for that dividend income, you are to attach to your tax return, the original copy of your dividend certificate as evidence.

Last Updated - July 6, 2026

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Exemptions

What are the exemptions available to Salary and Wage earners?

Salary and Wage earners are entitled to the following exemptions:

Pension

Pension Income is not subject to income tax. This includes all pensions paid by the Fiji National Provident Fund (FNPF), the Fiji Government or any other fund approved by the FRCS CEO.

  • Lump sum payment – A lump sum payment is a payment made to compensate an employee for changes to his/her conditions of service. It includes payments made on retirement but does not include redundancy payments. The criterion for exemption is that a maximum of up to FJ$5,000 is allowable if the following conditions are met:
    • it must not be contractual.
    • if the payment is made on retirement, then it is only allowable.
    •  if the person is not a member of the FNPF or an Approved Superannuation Fund.
  • Redundancy Payment – a redundancy payment is made to compensate an employee for loss of employment due to restructuring or downsizing in an organization. In accordance with the Income Tax (Exempt Income) Regulations 2016, Part 3(2)(a), employees are eligible for a tax exemption of up to $15,000. Any amount in excess of $15,000 must be added to the employee’s employment income and taxed accordingly.  These cases must first be referred to FRCS for approval. For more information, Click here.
  • Dividend – Dividend income received by an individual is exempt from tax if it is paid out of retained earnings that have been taxed at the corporate level. Dividends received from the Unit Trust of Fiji, all companies listed on the South Pacific Stock Exchange, Colonial First State Income and Growth Fund, Colonial First State Income Fund, , Fijian Holdings Unit Trust, Fijian Holdings Property Trust Fund or from a company incorporated in Fiji provided it has been subjected to non-resident dividend withholding tax and is received by a  non-resident are tax free.

Dividend

Dividend Income received from parties other than those listed above is fully exempt only if already taxed at corporate level. Otherwise, a determination will be made by the FRCS CEO  on the amount to be taxed further in the hand of the recipient. If you have returned income from dividends and are entitled to a deduction for that dividend income, you are to attach to your tax return, the original copy of your dividend certificate as evidence.

Last Updated - July 6, 2026

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