Tax in Cook Islands
The Cook Islands is a bit of a tax-haven compared to many other countries. There is indeed taxes but they are low in comparison and although the highest income tax is 30% this is effective tax. There are no additional tax duties like social welfare fees etc placed on top of the tax.
You will find that in the Cook Islands there is:
- No capital gains tax.
- No inheritance tax.
- No estate duty.
- No capital transfer tax.
- No gifts tax.
- No wealth tax.
Income tax
The main tax people will have to pay is income tax at a maximum rate of 30%. Again, note - this is effective tax. There are no extra charges on top of it even if you earn gizillions of money.
Income tax is payable by those residing and working in the Cook Islands as follows:
First NZ$ 0 to 10 000 earned in the calendar year is exempt.
Earning NZ$ 10 001 to 30 000 is income taxed at 25%.
Earnings above NZ$ 30 001 is income taxed at 30%.
VAT
There is VAT level at 12.5%, I do however not know what things have the VAT or not. I know products have VAT but I don't know if there is VAT on services or if there is certain areas which is exempt.
Stamp Duty
There is Stamp Duty on some official transactions
Import duty/Customs fees
Import duties/customs are levied at rates specified by law in 18 bands and range from 0%'150% percent, with an average effective rate of slightly over 10% on the CIF (cost plus insurance plus freight) value of all imported goods.
The government had lifted most import levies from July 1, 2006, although duties on pork, fresh fruit, vegetables, pearls, soft drinks, motor vehicles, liquor, tobacco and fuel remain in place. Duties on these items are planned to be cut by 50%.
I have also read somewhere that importing goods for starting/upgrading a bussiness has no import duties.
