Tonga Corporate Income Tax

Company income tax

• Company income tax basis — Companies are taxed on net profits under the Income Tax Act 2007 at a flat rate. Withholding taxes apply to certain payments, particularly to non-residents. Figures below are draft and require accountant confirmation. (Income Tax Act 2007)
• Standard company income tax rate — 25% % (Income Tax Act 2007 (https://taxatlas.io/country/tonga))
• Non-resident company — Taxed on Tonga-sourced income; permanent establishment profits taxed at the company rate (Income Tax Act 2007 (https://taxatlas.io/country/tonga))
• Tax base — Gross income less allowable deductions (net taxable profit) (Income Tax Act 2007)
• Final withholding tax on non-resident interest, royalties, dividends, technical service fees — 15% of the gross amount (final tax) % (Income Tax Act 2007 (https://tonga.tradeportal.org/media/IncomeTaxAct_2.pdf))
• Withholding tax on non-resident insurance premiums — 5% of the gross amount % ((approx — confirm)) (Income Tax Act 2007 (https://tonga.tradeportal.org/media/IncomeTaxAct_2.pdf))
• Withholding on interest paid to a resident (non-financial institution) — 10% of the gross interest % ((approx — confirm)) (Income Tax Act 2007 (https://tonga.tradeportal.org/media/IncomeTaxAct_2.pdf))
• Withholding tax base — Imposed on the gross amount; no deductions, losses, or credits reduce the taxable amount (Income Tax Act 2007 (https://tonga.tradeportal.org/media/IncomeTaxAct_2.pdf))
• Company income tax return deadline — On or about 30 April following the tax year ((approx — confirm)) (Income Tax Act 2007 (https://www.revenue.gov.to/Tax-Due-Dates-and-Extensions))
• Small business tax regime — A simplified small business tax may apply to smaller taxpayers below set turnover limits ((approx — confirm scope and rate)) (Income Tax Act 2007 (https://www.revenue.gov.to/small-business-tax))