What is CGT?
Capital Gains Tax (CGT) is a tax levied at 10% on profits or gains realized from the disposal of capital assets. It is calculated on the VAT Exclusive Price (VEP) of the asset. CGT does not apply to trading stock or assets that are not considered capital assets under section 2 of the Income Tax Act 2015.
Disposal of Assets:
For CGT purposes, a transfer of ownership is deemed to occur when an asset is:
- Sold, exchanged, transferred, or distributed.
- Cancelled, redeemed, relinquished, destroyed, lost, expired, or surrendered.
Who Does CGT Apply To?
CGT applies to gains from the disposal of capital assets by Fiji residents, regardless of the asset’s location. Resident persons can claim a foreign tax credit for taxes paid on foreign capital assets. For non-residents, CGT only applies to gains from the disposal of taxable assets located in Fiji.
How to Apply for a CGT Certificate Online:
Refer to the user guide for online CGT application instructions Click here.
Required Documents for CGT Application:
For more information on the required documents Click here.
Filing CGT Returns:
Individuals must file a CGT return within 30 days of disposing of capital assets, except for shares listed on the South Pacific Stock Exchange (SPSE).
Assets Subject to CGT:
The following capital assets attract CGT upon disposal, subject to exemption and deferral provisions in the Income Tax Act 2015:
- Real property, structural improvements, or interests in real property
- Leases of real property
- Yachts, ships, and boats
- Membership interests in companies, securities, or other financial assets
- Intangible assets (e.g., goodwill)
- Interests in partnerships or trusts
- Airplanes, helicopters, or other aircraft
- Options, rights, or other interests in assets (excluding trading stock or business intangibles)
Exempt Capital Gains:
- Gains by resident individuals or Fiji citizens not exceeding FJD$30,000.
- Gains from the disposal of a first residential property or principal place of residence by resident individuals or Fiji citizens.
- Gains from the disposal of shares listed on the SPSE.
- Gains from the disposal of assets used solely to derive exempt income.
- Gains from the disposal of interests in companies as defined in section 2(c) of the Income Tax Act.
- Gains from the disposal of family home interests transferred to existing joint tenants or tenants in common.
- Gains from the sale of shares during a private company’s reorganization, restructure, or amalgamation for SPSE listing purposes, provided the company lists within 24 months.
- Gains from the disposal of assets in deceased estates within 2 years of death or as allowed by the CEO.
- Gains from the disposal of shares held before 1st May 2011.
Deferral of Capital Gain Recognition:
No capital gain arises on the disposal of capital assets in the following cases:
- Transfers between spouses (including de-facto spouses) as part of a divorce settlement or separation agreement.
- Transfers due to the death of a person to an executor or beneficiary.
- Transfers of principal residences, first residential properties, or interests in capital assets between family members.
- Transfers due to loss, destruction, or compulsory acquisition if the consideration is reinvested in a similar asset within one year or as allowed by the CEO.
Consequences of Non-Compliance:
Failure to submit CGT returns and make necessary payments results in penalties. Late lodgement attracts a 20% penalty on the CGT payable, and late payment incurs a 25% penalty on the CGT payable.
Last Updated - July 1, 2025