Business in Tuvalu

A Sole Trader has one owner, while a Partnership has two to 25 owners. A Company is formed under the Companies Act and may be public or proprietary; member liability is generally limited to paid-up shares. Sole Traders and Partnerships are taxed as individuals, while resident companies pay Business Tax at 30% of net profit and non-resident companies at 40%. A foreign company or non-Tuvaluan should contact the Department of Business directly because additional financial, character and security information may apply to foreign pecuniary interests or officers and directors. A Sole Trader submits the Business, Revenue & Customs Registration Form to business@gov.tv. A Partnership adds a signed Partnership Agreement. Company incorporation requires the registration form, Form 1 Application for Incorporation, Form 2 Consent of each director, Company Model Rules and proof of payment through the Government Cashier; the company registration fee is $100. Every registered business activity also requires an Operational License under the Licenses Act 2008. The relevant Kaupule depends on the operating location: Nanumea, Nanumaga, Niutao, Nui, Vaitupu, Nukufetau, Funafuti or Nukulaelae. The licensing process is therefore location-dependent rather than handled by a single country-wide desk. Additional permits may apply to imports and exports, animal or plant products, marine products and food. The Tuvalu Trade Portal provides a procedural overview, but the responsible authority and current local handling should be confirmed for the specific activity. A Sole Trader or Partnership can use the Presumptive Tax system when annual sales are below $100,000: the amounts are $100 for sales up to $10,000, $250 for $10,001 to $30,000, $500 for $30,001 to $50,000 and 2% of sales income for $50,001 to $100,000. Presumptive Tax returns are filed quarterly within 15 days after the quarter ends. Individuals and partners also have a $10,000 tax-free threshold each, followed by 30% income tax. When taxable income is expected to exceed $50,000, provisional tax requires at least one-third by 30 September and the remaining two-thirds by the last day of February after the tax year. Tuvalu Consumption Tax applies to taxable supplies and imports, with compulsory registration from taxable supplies of $100,000 or more in any 12-month period. The rate shown in the current Registration Form is 7%, and quarterly returns are due on 30 April, 31 July, 31 October and 31 January for the preceding quarters. Exports are zero-rated, while examples of exemptions include health, education, financial services, residential land leases and certain basic foods. Customs duty and excise form part of the taxable import value where applicable. A Company must keep proper books showing assets, liabilities, purchases, receipts and expenditure. It files an annual return at least once a year, with lodgement within 42 days after the annual general meeting, and follows the applicable annual accounts and audit framework. The Development Bank of Tuvalu offers Business Savings and Business Loan products, with published materials referring to agriculture, fishing, women’s entrepreneurship and youth entrepreneurship; current interest rates and eligibility should be confirmed directly. The Tuvalu National Private Sector Organisation provides private-sector representation and business networking through the Tuvalu Trade Portal. No reliable evidence establishes a nationwide incubator or mentoring service, and the UNDP TIPS project from 2020 to 2025 should not be treated as a current programme. A going concern transfer can be zero-rated under the Consumption Tax Act when the parties make a written agreement and notify the Taxation Officer. A Company may be closed through members’ voluntary or creditors’ voluntary winding up, involving a liquidator, creditor meetings where applicable, a final meeting and dissolution; the Registrar may also strike off a defunct company. Official sources do not provide a complete current close-out workflow for a Sole Trader, so the Department of Business and Tuvalu Revenue & Customs Service should confirm the required deregistration and tax steps.