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Investment Guide SAMOA INVESTMENT GUIDE © Government of Samoa, June 2020 COPYRIGHT INFORMATION Apart from any use as permitted under the Copyright Act 1998, no part of this publication may be reproduced by any process without written permission from the Government of Samoa. Requests and inquiries concerning reproduction and rights should be addressed to: CHIEF EXECUTIVE OFFICER Ministry of Commerce, Industry & Labour PO Box 862 Apia, SAMOA Telephone: (685) 20441 Email: [email protected] Website: www.mcil.gov.ws DISCLAIMER: The information in this publication is accurate at the time of printing, however, course and price information are subject to change SAMOA INVESTMENT GUIDE Talofa Investors, The Investment Guide 2020 is an important publication intended to provide basic information that every investor needs to know about the investment environment of Samoa, including: (i) Investment Opportunities; (ii) Processes & Procedures for setting up a business in Samoa; and who to contact on these processes. Trust you will find the information useful and will serve as a roadmap in your quest to take advantage of the investment opportunities in Samoa that are suitable to your business interest. We welcome you and will do all that is possible to facilitate your enquiries about the investment environment of Samoa. Fa’afetai, Pulotu Lyndon Chu Ling CHIEF EXECUTIVE OFFICER ABOUT SAMOA Government Samoa is a Parliamentary democracy where the Parliament is elected through universal suffrage every five years. It has a unicameral Legislative Assembly consisting of 54 members, who are all matais (chiefly titleholders) and at least five are women elected by citizens aged 21 years and over. The Prime Minister selects 12 other parliamentarians to form a Cabinet. The Human Rights Protection Party (HRPP) has been in power for an uninterrupted 34 years. Constitution Established in 1960 and it blends traditional and democratic institutions and processes. The Constitution also recognizes the separation of powers between the Legislature, Judiciary and Executive. Legal System Samoa follows the Common Law system which is similar to the English Legal system. Official Name Independent State of Samoa Head of State His Highness Tuimalealiifano Va’aletoa Sualauvi II Head of Hon. Tuilaepa Fatialofa Lupesoliai Government Sailele Malielegaoi (Prime Minister) Population Approximately 195,979 (2016) Capital Apia Urban Area : 37,391 Official Languages Samoan and English Economy Agriculture, Fisheries, Tourism, Manufacturing, Services GDP Nominal: SAT$2,369,264 Real: SAT$2,050,844 Minimum Wage SAT$3.00 Major Export Australia, American Samoa, USA, Markets Japan, Tokelau, Fiji, Singapore Major Import New Zealand, Fiji, Singapore, Markets Australia, China CONTENTS 1 – Investment Information .........................................................................................11 1.1 – Why invest in Samoa? .....................................................................................11 1.2 – Investment Opportunities ...............................................................................12 1.2.1 – Tourism ....................................................................................................12 1.2.2 – Fisheries ...................................................................................................12 1.2.3 – Food Processing .......................................................................................12 1.2.4 – Engineering ..............................................................................................13 1.2.5 – Timber & Furniture ..................................................................................14 1.2.6 – Coconut ....................................................................................................14 1.2.7 – Garment & Textile Industry ......................................................................15 1.2.8 – Services Sector .........................................................................................15 1.2.9 – Other Investment Opportunities..............................................................16 2 – Processes & Procedures .........................................................................................17 2.1 – Setting up a business in Samoa .......................................................................17 2.1.1 – Ministry of Commerce, Industry & Labour...............................................17 2.1.2 – Ministry of Customs and Revenue ...........................................................17 2.2 – Company Registration .....................................................................................17 2.3 – Foreign Investment Registration .....................................................................18 2.3.1 – Cancellation of Certificates ......................................................................19 2.3.2 – Renewal of FIC: ........................................................................................19 2.4 – Business License ..............................................................................................20 2.4.1 – Sole Trader/Individual Business Application ............................................20 2.4.2 – New Business Application (Excluding Sole Traders) .................................20 2.4.3 – Business type and the associated fees .....................................................21 2.5 – Employment Permits .......................................................................................21 2.6 – DEVELOPMENT CONSENT ...............................................................................22 2.7 – BUILDING PERMIT ...........................................................................................22 2.8 – Land .................................................................................................................23 2.8.1 – Ministry of Natural Resources and Environment .....................................23 2.8.2 – Samoa Land Corporation ..........................................................................23 2.8.3 – Samoa Trust Estates Corporation.............................................................24 2.9 – Labour .............................................................................................................24 2.9.1 – Labour and Employment Act 2013 ...........................................................24 2.9.2 – Apprenticeship Scheme ...........................................................................25 2.10 – Statutory Contributions.................................................................................25 2.10.1 – Accident Compensation Corporation .....................................................25 2.10.2 – Samoa National Provident Fund ............................................................26 2.11 – Taxes .............................................................................................................26 2.11.1 – Income Tax .............................................................................................26 2.11.2 – Company Tax ..........................................................................................27 2.11.3 – Small Business Tax .................................................................................27 2.11.4 – Individual’s Salary & Wage Tax ..............................................................27 2.11.5 – Capital Gains Tax ....................................................................................28 2.11.6 – Other Taxes ............................................................................................28 2.11.7 – Value-Added-Goods-Services-Tax (VAGST) ............................................28 2.11.8 – Indirect Taxes .........................................................................................29 2.11.9 – The Tariff Structure ................................................................................29 2.12 – Government Assistance ................................................................................30 2.12.1 – Duty Concession Scheme .......................................................................30 2.12.2 – Code 121 ................................................................................................30 2.12.3 – Tax Incentives .........................................................................................31 2.12.4 – Duty Drawback .......................................................................................31 2.12.5 – Code 113 ................................................................................................31 .....................................................................................................................................33 3 – Services ..................................................................................................................34 3.1 – Financial Services ............................................................................................34 3.1.1 – The Central Bank of Samoa ......................................................................34 3.1.2 – Commercial Banks ....................................................................................34 3.1.3 – Development Bank of Samoa ...................................................................35 3.1.4 – Insurance Companies ...............................................................................36 3.2 – Air & Sea Services ............................................................................................37 3.2.1 – Air Access
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