Authority Clears the Air on Tax on Interest from Savings

Exemptions for those over 55 years and also those earning less than $200 highlighted
FIJI REVENUE AND CUSTOMS AUTHORITY
The Fiji Revenue and Customs Authority has clarified that tax on interest earned from your savings or Resident Interest Withholding Tax as it is known, only applies on the interest earned and not on the Principle savings amount.
Chief executive, Jitoko Tikolevu, has also reiterated that effective January 1 this year, all senior citizens over 55 years and pensioners have been exempted from paying Resident Interest Withholding Tax.
However, the interest earned should be the only source of income and is less than $16,000.
“Those who are over 55 years and are earning interest on their savings are urged to come forward to FRCA to obtain certificate of exemption,” he said.
“The certificate of exemption then should be submitted to the respective banks.
“Exemption also applies where the interest earned is $200 or less in a year. Non-profit organisations are also exempted from Resident Interest Withholding Tax.”
Resident Interest Withholding Tax is a final tax and if deducted correctly, it cannot be refunded.
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