Exemptions & Deductions

Salary & Wage Earners


What are the exemptions and deductions available to Salary and Wage earners?

Salary and Wage earners are entitled to claim the following Exemptions and Deductions.


    • Pension Exemption
      Pension Income is not subject to income tax. This includes all pensions paid by the Fiji National Provident Fund, the Fiji Government or any other fund approved by Commissioner.
    • Lump sum payment exemption 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 exemption of up to FJ$5,000 is allowable if the necessary conditions are met.These are:
        • 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 Exemption A redundancy payment is a payment made to compensate an employee for loss of office due to restructuring or downsizing in an organisation.  The maximum exemption is FJ$15,000 and the balance is subject to tax at 15%. These cases must first be referred to FRCS for approval. Refer to:
    • Dividend Exemption 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 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 Chief Executive Officer 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.



Further information:

For further assistance on the exemptions and deductions , you may send an email request to
tepu@frcs.org.fj or info@frcs.org.fj.

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