The Fiji Revenue and Customs Authority (FRCA) has reiterated that international investors wanting a real estate license have the same requirements as local applicants and must also undertake a rental income reporting system, as with anyone else involved in the industry.
“International real estate agents, who deal in properties situated in Fiji, are also deriving income from sources in Fiji,” it stated in a published column this week.
“Commissions payable to these agents are subject to 5 per cent withholding tax.”
FRCA noted that many former residents who now resides elsewhere still derived income from renting out their local properties, for which rent was collected by real estate agents or other parties on their behalf.
“Income tax and VAT, where it is correctly due, have to be paid by the real estate agents. FRCA has also come across a number of people acting as real estate agents but are not registered.
“A person is deemed to be a real estate agent if he or she acts, or holds himself or herself out to the public as ready to act, for reward as an agent in respect of the sale or other disposition of land or business or the purchase or other acquisition of land or of business, in respect of the leasing and letting of land, whether or not the person carries on any other business.”
FRCA noted that challenges included unfiled rental income reporting returns (stating the rent collected), expenses that were claimed without proper invoices, verifying costs of properties for Capital Gains Tax purposes and depreciation, and the incorrect classifications of expenses – capital from revenue.
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