Cook Islands personal income tax rates are progressive up to 30%. Income tax is payable by those residing and working in the Cook Islands. It has a scalable nature and reaches the maximum rate of 30% on a sliding scale as follows:
Taxable Income / Tax Rate %
NZD 0 - 10,000 Exempt
NZD 10,001 - 30,000 25%
NZD 30,001 and above 30%
Persons are not liable to capital gains, inheritance, gift, estate and wealth tax in Cook Islands.
The NZD 10,000 exemption is for a full year of residence in the Cook Islands. The exemption is apportioned to days resident for individuals who have not been resident for a full year. Non residents do not receive the exemption.
Nonresident income tax rates are as follows:
Taxable Income / Tax Rate %
NZD 0 - NZD 4,000 20%
NZD 4,001 - NZD 24,000 25%
NZD 24,001 and above 30%
Provisional tax is required to be paid by any taxpayer who in any income year derives assessable income other than from source deduction payments and their tax payable on the assessable income is over NZD 1,000.
Payments of provisional tax are due in two equal instalments during the income year. On a standard balance date of December 31 the instalments are due on June 1 and December 1 respectively. The total amount of provisional tax payable is the terminal tax calculated in the preceding year, however provisional tax can be estimated in some circumstances.
The standard rate of corporate income tax in Cook Islands is 20%.
A resident domestic company is liable to pay 20% on its worldwide income, a nonresident domestic company pays 20% on profits derived from business activities conducted within the territory of the Cook Islands.
Withholding tax at a rate of 15% is levied on paying out dividends, interests or royalties, but the rate of 5% is withheld in the same transactions paid to residents. Withholding tax is not levied on interests paid by banks to nonresidents.
Exchange Control: Only in relation to certain dealings in New Zealand Dollars. There are no local restrictions on the movement of funds to or from the Cook Islands in other currencies and funds may be held and business transacted in the Cook Islands in any currency.
Offshore investors in the Cook Islands pay no income tax, capital gains tax or death duties, although locals pay personal and company taxes.
The standard rate of Value added tax (VAT) in Cook Islands is 12.5%. Value Added Tax (VAT) is on all goods and services.
Income Tax Rate
Corporate Tax Rate
Sales Tax / VAT Rate
Last Update: 2009
ANTIGUA & BARBUDA
BOSNIA & HERZEGOVINA
BRITISH VIRGIN ISLANDS
CENTRAL AFRICAN REP.
CONGO, DEM. REPUBLIC
CONGO, REPUBLIC OF
ISLE OF MAN
PAPUA NEW GUINEA
TURKS AND CAICOS
UNITED ARAB EMIRATES
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