Step #4: Tax Registration

The Tax Division from the Ministry of Finance and Economic Development (MFED) is responsible for Tax registration and administration. 

An Individual or Company is required to register for TIN with the Tax office at which point a TIN confirmation letter is to be issued, containing the type of taxes they are subjected to. The TIN registration form must be completed and signed by the authorized person (owner, director or others) with attachments as follow:

• Proof of identity (Passport)
• ANZ Bank confirmation letter

Tax Obligations 

The two main tax obligations of a taxpayer include tax filing and tax payment. These are subject to the type of tax which a Taxpayer’s TIN has been registered for. There are four different types of taxes administered by the Tax office including excise tax, Pay as You Earn Tax (PAYE), Value Added Tax (VAT), and income Tax: 

• The Excise Tax is a tax on imports that are considered to have negative impacts to the people of Kiribati. Some goods/services are known to be exempted from Excise as per the approved list (refer attachment). There is no obligation to lodge any tax return on this type of tax. All taxes are to be paid at the Customs Office (division of the MFED that works closely with the Tax office).
• Pay As You Earn Tax (PAYE) is the tax on employee’s income to be collected by the Employer and remitted to the Tax office every month within 15 days after end of the month. The Annual PAYE return is also expected to be lodged within 3 months after end of the year. Prescribed forms (Monthly & Annual) are available at the tax office.
• Value-Added-Tax (VAT) is an indirect consumption tax imposed at the rate of 12.5% on most goods and services supplied in Kiribati by registered persons during a taxable activity. Some supplies are specifically exempted from VAT, while others are zero-rated (i.e., treated as taxable supplies but at a rate of 0%).
• According to the VAT Act 2013 any person with total value of taxable supplies exceeding $100,000 within a tax year should apply for registration of VAT by filling out the VAT Application Form. A VAT registered person is obliged to display its VAT certificate for the public information, design a Tax Invoice showing TIN and other required details, charge VAT (12.5%) on taxable supplies, to submit & pay a quarterly VAT return within 15 days after end of the quarter to the Tax office, and others. A VAT registered person may also appoint a VAT representative who shall carry out VAT obligations on their behalf.  VAT forms and other important VAT information are available at the Tax office.
• Under the Income Tax Act 2023, an individual and company must lodge an Income Tax Return annually within 3 months after end of the tax year. There is a separate Income Tax Return form for an individual and a company taxpayer. These forms are available at the Tax office.

Required information

• Completed, signed application form. 
• Certificate of Business Name or Foreign Investment Certificate from MTCIC.
• Application fee: Free. 
• Processing time: Up to 3 days.

Contact information

• Office location: MFED, Bairiki, Tarawa 
• Telephone #: 72021806 & 73033777 
• Officer in Charge: Ms Reta Ubati 
• Email: dcot@mfep.gov.ki  -  tax@mfep.gov.ki
• Website: www.mfed.gov.ki/our-work/taxation/business