Tonga Tax Overview

Tonga tax system at a glance

The Kingdom of Tonga taxes income under the Income Tax Act 2007 and levies a broad-based Consumption Tax. Administration sits with the Ministry of Revenue and Customs. These are unverified draft figures for tax year 2025 pending review by a licensed Tonga accountant.

• Tax authority — Ministry of Revenue and Customs (Tonga) (Income Tax Act 2007)
• Currency — Tongan Pa'anga (TOP / T$) (Income Tax Act 2007)
• Standard tax year — 1 July to 30 June ((approx — confirm; some businesses may use a substituted accounting period)) (Income Tax Act 2007)
• Basis of taxation — Residents are taxed on worldwide income; non-residents are taxed on Tonga-sourced income only (Income Tax Act 2007)
• Top personal income tax rate — 25% % ((approx — confirm top band and thresholds)) (Income Tax Act 2007)
• Personal tax-free threshold — TOP 12,000 per year TOP ((approx — confirm current threshold with Ministry of Revenue and Customs)) (Income Tax Act 2007)
• Company (corporate) income tax rate — 25% % (Income Tax Act 2007)
• Does Tonga have a VAT/GST? — Yes — a Consumption Tax (CT) applies at a standard rate of 15% (Consumption Tax Act)
• Annual income tax return deadline — On or about 30 April following the end of the tax year ((approx — confirm exact due date and any extension rules)) (Income Tax Act 2007)
• Consumption Tax return frequency — Periodic (monthly or two-monthly periods), due within 28 days of period end ((approx — confirm assigned period category)) (Consumption Tax Act)