Source-cited draft: tax overview for Timor-Leste (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
General reference only
This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for your personal facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.
Source-cited draft. This skill is source-cited but has not been reviewed by a licensed practitioner. It may be incomplete, outdated, or wrong.
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| Tax system at a glance | Timor-Leste operates a USD-denominated tax system administered by the national revenue authority, with low flat headline rates and no VAT. The core domestic legislation is the Taxes and Duties Act (Law No. 8/2008). All figures below are an unverified draft pending review by a licensed Timor-Leste accountant. | |
| Tax year | Calendar year (1 January – 31 December); a substituted accounting year-end may be granted on applicationTaxes and Duties Act (Law No. 8/2008) | |
| Official currency | United States dollar (USD)Taxes and Duties Act (Law No. 8/2008) | |
| Tax authority | Autoridade Tributária Timor-Leste (Timor-Leste Tax Authority / Timor-Leste Revenue Service)Autoridade Tributária Timor-Leste | |
| Basis of taxation | Residents are taxed on worldwide income; non-residents on Timor-Leste-source income onlyTaxes and Duties Act (Law No. 8/2008) | |
| Headline personal income tax rate | 0% up to USD 6,000 of annual taxable income; 10% on the excess (top rate 10%)Taxes and Duties Act (Law No. 8/2008) | |
| Headline corporate income tax rate |
Timor-Leste operates a USD-denominated tax system administered by the national revenue authority, with low flat headline rates and no VAT. The core domestic legislation is the Taxes and Duties Act (Law No. 8/2008). All figures below are an unverified draft pending review by a licensed Timor-Leste accountant.
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Other Timor-Leste computations in the OpenAccountants library.
| 10% (general); 30% for petroleum/oil & gas contractorsTaxes and Duties Act (Law No. 8/2008) |
| Does Timor-Leste have VAT/GST? | No VAT or GST. Indirect tax is via a sales tax (on imported goods) and a 5% services tax on designated servicesTaxes and Duties Act (Law No. 8/2008) |
| Annual corporate income tax return deadline | Last day of the third month after year-end (≈ 31 March for calendar-year filers)Taxes and Duties Act (Law No. 8/2008) |
| Monthly tax filing deadline (WIT, services tax, sales tax, WHT) | By the 15th day of the month following the taxable monthTaxes and Duties Act (Law No. 8/2008) |
| Social security | Mandatory general social security scheme; combined 10% of earnings (6% employer, 4% employee)Social Security General Regime (Law No. 12/2016) |
Rendered from the facts database. General reference only — confirm with a qualified professional before acting.
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