Revenue Management Division

Income Tax - Quick Reference Guide

This fact sheet tells you about your income tax obligations. Find out here about filing your income tax returns and what deductions you can claim. We’ll also explain when and how you can pay your income tax.

Income tax is payable on your salary, wages, interest Completing your tax return income, land income, overseas income, dividends, commissions, bonuses and net business profits, etc. You (or your tax agent) will need to complete a tax return each year for yourself if you earn any Calculating my income tax? income and/or your business if applicable.

The way you receive income, through employment, You can complete your tax returns online or business determines how you calculate your at tax.cookislands.gov.ck or post it to us. income tax. When are tax returns due If you’re employed The standard tax year is 1st January - 31 December If you’re employed your employer will be deducting  If you earn a salary, wage or pension the PAYE from your wages or salary. Your employer will due date for filing your income tax return is also issue you with a tax deduction certificate by the 1st March following the year you are filing. 31st January after the end of the tax year.   If you’re a business, sole trader, partnership or If you’re a sole trader or partnership company the due date for filing your income tax If you’re in business in your own name, or in a return is 1st May following the year you are partnership, you’ll be responsible for all its income and filing for. debts. You pay income tax on your net profits. The Paying your income tax taxable income is the net profit the business makes The due date for paying any outstanding income after deducting all allowable expenses. tax is the 1st of November following the tax year. In a partnership, the net profit is shared between This means, you usually have 10 months to pay the partners and included in their personal income any outstanding income tax. tax returns. You can make payments: If you’re a company  Electronically  If your business is owned by a limited liability company  By credit or debit card (BSP) and pays you a salary, you’ll be taxed on your salary as   By posting or presenting a cheque. an individual. The company’s gross revenue less all the business Electronic payments are made through your bank by: expenses (including your salary) determines it’s net  Online banking  profit. Any profits belonging to the company are taxed  Automatic payment at the company tax rate.   Direct credit When making electronic payments, include:

 Your RMD number  Log online for more  A tax type code (INC - income tax)  Go to tax.cookislands.gov.ck to  The period the payment relates to register. You will be emailed in return with a (Year ending December 2019 = 1219) temporary password, which can be changed to For example RMD 12345 Income tax for 2019 your preferred password when you log in. For payment reference: assistance contact Revenue Management on 29365. (12345INC1219)

W ww.mfem.gov.ck/tax ~ eTax tax.cookislands.gov.ck ~ Phone 29365 Rarotonga/ 31187 Aitutaki ~ PO Box 120, Rarotonga Revenue Management Division

Claiming tax deductions

 Constitution Celebrations Committee Company income tax rates   Cook Islands Business & Professional Women’s Ass. Inc  Residency Tax Rate  Cook Islands Charitable Foundation   Cook Islands Cyclone Bola Appeal Resident company 20%   Cook Islands Cyclone Peni Appeal Non-resident company 28%   Cook Islands Disabled Persons Institute   Cook Islands Disaster Relief Personal income tax rates   Cook Islands Government Hurricane Relief Fund 2018 – 2019 Tax Rates   Cook Islands Hospital Comforts Committee   Cook Islands Marine Park Trust Income Bracket Tax Rate   Cook Islands Music Association Inc Income under 11,000 Tax Free   Cook Islands Polynesian Music Trust Income from 11,001 - 30,000 17%   Cook Islands Red Cross Inc  Income from 30,001 - 80,000 27%  Cook Islands Voyaging Society Inc  Income from 80,001 plus 30%  Cook Islands Whale Research & Education Centre Inc   Crippled Children’s Society (Cook Islands)  2020 Tax Rates  Girl Guide Association (Cook Islands   Hospital Comforts Fund (Cook Islands) Income Bracket Tax Rate   Library and Museum Society (Cook Islands) Income under 12,800 Tax Free   Makea Takau Paepae Ariki Building Trust  Income from 12,801 - 30,000 17%  Marae Moana Establishment Trust  Income from 30,001 - 80,000 27%  Pacific Islands Aids Foundation Trust  Income from 80,001 plus 30%  Pacific Islands Conservation Initiative Trust   Pacific Wave Network Trust Secondary Income   Rarotonga Lagoon Conservation Trust All income from 2014 is consolidated and tax payable is   Rotary projects within the Cook Islands calculated on the tax rates relevant to the income year.   Save Our Oceans Charitable Trust  What is tax deductible?  Takuvaine Development and Action Committee  If you’re employed  Te Are Manu (Cook Islands) Inc   Te Aroa Mou Trust Only charitable donations are tax deductible. Receipts  must be presented for all donation claims to be  Te Ipukarea Society accepted. Only donations to donee approved   Te Vaerua Community Rehabilitation Inc organisations registered with Revenue Management   The 2017 TUCE Charitable Trust will be allowed. You can claim from $200 and up to  $5,000 per tax year.  The Catholic Education Trust of the Diocese of Rarotonga   The Church of Jesus Christ of Latter-Day Saints Donee approved organisations   The Cooks Foundation  All Schools    The Cyclone Martin Charitable Trust  Religious Organisations established in the Cook Islands    The Esther Honey Foundation Inc  Aitutaki Conservation Trust    The Northern Group Education Trust  Autism Cook Islands Inc    The Teimurimotia Volunteer Fire Rescue Brigade  Boy Scout Association (Cook Islands) Charitable Trust    Celebration on the Rock Inc  William G Faris Education Trust    Church Uniformed Youth Organisation in the Cook Islands  Youth with a Mission Cook Islands Inc

www.mfem.gov.ck/tax ~ eTax tax.cookislands.gov.ck ~ Phone 29365 Rarotonga/ 31187 Aitutaki ~ PO Box 120, Rarotonga