Business Menu
Contact Details
Postal: Private Bag, Avarua, Rarotonga
Phone: (+682) 24 296
Fax: (+682) 24 298
Email: info@btib.gov.ck
website: www.btib.gov.ck
"Your business portal to the Cook Islands"
| Taxation |
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There is no capital gains tax in the Cook Islands, however a resident domestic limited company pays corporate tax of 20% on worldwide profits and non-resident domestic company pays corporate tax of 20% from income sourced in the Cook Islands. A withholding tax of 15% is payable on any dividends, interest or royalties paid by Cook Islands companies to non residents of the Islands; the rate of withholding for payments to residents are 5%. Interest payable to non-resident depositors by banks is free of withholding tax. The Value Added Tax is levied at 12.5% on most goods and services. Local companies can claim 100% depreciation on imported assets used in the outer islands which will be in place till 2010. Cook Islands does not have exchange controls or regulations that hinder the repatriation of capital, profits, dividends, royalties, loan payments, interest earned on loans and other forms of foreign owned finance. The government had lifted most import levies from July 1, 2006, however levies on pork, fresh fruit, vegetables, pearls, soft drinks, motor vehicles, liquor, tobacco and fuel are still in place. However, import duties on these items will be cut by 50% on July 1, 2008. Further reductions will be subject to review. |
