Taxes in Solomon Islands

The main domestic taxes are Income Tax, Provisional Tax, PAYE, Withholding Tax, Goods Tax, Sales Tax and Stamp Duty. The IRD handles registration, assessment, returns, refunds, audits and objections. SICED operates under the Ministry of Finance and Treasury for import and export clearance, customs valuation, duties and excise. IRD offices are located in Honiara, Noro, Auki, Gizo and Panatina; no separate provincial or municipal income-tax system is established in the available sources. Individuals who are resident in Solomon Islands through their stay or intention to stay for more than six months are generally taxed on worldwide income. Non-residents are generally taxed on income from Solomon Islands. The first SBD 30,080 of personal income is exempt, with current IRD tax-table rates of 11% up to SBD 15,000, 23% from SBD 15,001 to SBD 30,000, 35% from SBD 30,001 to SBD 60,000 and 40% above SBD 60,001. PAYE is deducted by employers from salaries and wages. An employee whose only income is salary subject to correct PAYE deductions will usually not need an annual return, but other income such as dividends, director's fees or interest may create a return obligation. Businesses and employers register with the IRD. A TIN is the identifier used for tax administration: a sole trader normally has one TIN, a partnership has its own TIN and the partners also have individual TINs, and a company or trust has its own TIN. Registration uses TAA Form 1 for individuals and TAA Form 1A for non-individuals. Online registration is free, and IRD normally sends the password contact after about three to five working days. E-Tax supports returns, payments, account balances and messages. A business reports its profit or loss through an income-tax return. Sole traders and partners generally use IR21, while companies and partnerships use IR22. A partnership normally files a return but the partners are taxed on their respective shares. Resident companies are generally taxed at 30% of profit and non-resident companies at 35%. Provisional Tax is normally paid in four instalments based on one quarter of the last assessed annual tax, or on an estimate in the first year. The usual dates are 20 March, 20 June, 20 September and 20 December. Goods Tax applies to locally manufactured goods used in Solomon Islands and to imported goods. The usual rates are 10% for local goods, 15% for imports and 5% for rice where the applicable schedule provides that rate. Importers pay at the customs point, while manufacturers and wholesalers may have registration and return duties. Goods Tax returns and payments are generally due on the 30th of the following month. Sales Tax applies to prescribed goods and services, commonly at 10%, including telecommunications, restaurants, accounting, legal, security, vehicle hire, real-estate agency, professional, repair, beauty and laundry services. Special charges apply to some fuel, travel, cinema, video and casino transactions. Withholding Tax requires a payer to deduct tax from specified payments and remit it to the IRD. Examples include 7.5% on resident contracting payments, 10% on resident interest and property rent, 20% on dividends to individuals or companies, and different rates for non-resident interest, professional services, royalties, leases, management services and dividends. The applicable rate depends on the payment and recipient. Withholding Tax is generally due by the 15th of the following month; the payer also provides an annual IR14 certificate by 31 January. Stamp Duty applies to documents and transactions such as property transfers, leases, share transfers, guarantees, powers of attorney and insurance documents. Standard documents often carry SBD 50, while percentage rates apply to property, shares and leases according to their value. A Stamp Duty return is generally due within two months after signing or execution. Import duties commonly use ad-valorem rates of 5%, 10%, 15% or 20%, although the tariff position and goods can produce different rates. Excise applies especially to tobacco, alcohol, fuel and related products. Importers use the Single Administrative Document through ASYCUDA World, and Customs may check documents, value or examine cargo. An income-tax return is generally due by 31 March after the income year, with a different balance date usually allowing three months after year-end. Income-tax balances are generally due by 30 September. Tax records must normally be kept for seven years after the end of the tax period and should include invoices, receipts, cashbooks, bank reconciliations and evidence for expenses. The IRD can audit individual transactions or conduct a wider examination; taxpayers must provide access, copies, assistance and complete answers. An objection to a tax decision uses TAA Form 5 and normally must be filed within 60 days after notice. The tax normally remains payable while disputed. A dissatisfied taxpayer may appeal to the High Court and then the Court of Appeal, subject to the applicable grounds. Overpaid PAYE or Provisional Tax may be refundable, but no general refund or processing-time guarantee applies. TAA Form 8 is used for tax clearance and TAA Form 9 for clearance connected with transferring money abroad. Non-resident withholding obligations should be checked before an overseas payment. Solomon Islands has domestic residence and source rules for cross-border income, and the consulted IRD material identifies a United Kingdom–Solomon Islands double-taxation arrangement with amendments. Foreign-tax relief is generally limited by the lower applicable foreign or Solomon Islands tax rate. A VAT system, wider Goods Tax and Sales Tax changes, transfer-pricing rules and other reforms appear in the 2026–2028 policy work programme, but proposed reforms are not current law unless enacted.