Source-cited draft: personal income tax for Timor-Leste (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.
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Every figure is drawn from this Tax Guide and cited to its source.
Wage Income Tax — resident employees
0% on monthly wages up to USD 500; 10% on the portion above USD 500Taxes and Duties Act (Law No. 8/2008) — https://attl.gov.tl/wage-income-tax/
Wage Income Tax — non-resident employees
10% flat on all Timor-Leste-source wages, with no tax-free thresholdTaxes and Duties Act (Law No. 8/2008) — https://taxsummaries.pwc.com/timor-leste/individual/taxes-on-personal-income
Income tax on non-wage income — band 1
0% on annual taxable non-wage income up to USD 6,000Taxes and Duties Act (Law No. 8/2008) — https://taxsummaries.pwc.com/timor-leste/individual/taxes-on-personal-income
Income tax on non-wage income — band 2
10% on annual taxable non-wage income over USD 6,000Taxes and Duties Act (Law No. 8/2008) — https://taxsummaries.pwc.com/timor-leste/individual/taxes-on-personal-income
Income tax — non-resident individuals
10% flat on all Timor-Leste-source taxable income, with no tax-free thresholdTaxes and Duties Act (Law No. 8/2008) — https://taxsummaries.pwc.com/timor-leste/individual/taxes-on-personal-income
Annual tax-free threshold (non-wage income, residents)
USD 6,000 per yearTaxes and Duties Act (Law No. 8/2008) — https://taxsummaries.pwc.com/timor-leste/individual/taxes-on-personal-income
Individual residence test
An individual is resident if present in Timor-Leste for more than 182 days in the tax year, or has a permanent home / habitual abode in Timor-LesteTaxes and Duties Act (Law No. 8/2008) — https://taxsummaries.pwc.com/timor-leste/individual/residence
Treatment of WIT on resident wages
Wage Income Tax withheld by the employer is generally a final tax for employees with a single employerTaxes and Duties Act (Law No. 8/2008) — https://attl.gov.tl/wage-income-tax/
WIT remittance deadline
Employer must remit withheld WIT by the 15th day of the month following the deductionTaxes and Duties Act (Law No. 8/2008) — https://attl.gov.tl/wage-income-tax/
Annual income tax return deadline (non-wage income)
By the last day of the third month following year-end (≈ 31 March)Taxes and Duties Act (Law No. 8/2008) — https://taxsummaries.pwc.com/timor-leste/corporate/tax-administration
Deductions for non-wage business income
Ordinary and necessary expenses incurred in deriving taxable income are generally deductible; specific limits and capital allowance rules applyTaxes and Duties Act (Law No. 8/2008) — https://taxsummaries.pwc.com/timor-leste/individual/deductions
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
Timor-Leste distinguishes Wage Income Tax (WIT, withheld by employers) from income tax on non-wage income. Rates are low and flat above a tax-free threshold. These are unverified draft figures.
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Other Timor-Leste computations in the OpenAccountants Tax Library.