Employer Tax Contributions

Tax Type	Rate	Base
Income Tax	0%	N/A (no personal income tax)
Value Added Tax (VAT)	12.5% or 15%	Most goods and services (if annual turnover exceeds VT4 Million)
Vanuatu National Provident Fund (VNPF)	4%	Employee's gross monthly salary
Annual Registration Fee (Corporate)	$300 - $1,000 USD	Company type and structure (replaces corporate tax)

Filing & Compliance

• VNPF contributions (employer and employee portions) are due monthly by the 15th of the following month.
• VAT returns and payments are due on the 27th day of the month following the end of the taxable period.
• Employers must register with the VNPF and obtain an employer registration number.

Vanuatu's tax system is characterized by its minimal direct taxation, making it attractive for businesses and individuals.

Personal Income Tax

Vanuatu does not levy personal income tax on its citizens or residents, regardless of whether the income source is domestic or international. This means that individuals retain 100% of their earned income. There are also no capital gains, inheritance, or wealth taxes.

Corporate Tax

Companies registered in Vanuatu and generating income from outside the country are exempt from corporate taxes. There is an annual company registration fee, varying based on the company's type and size. Companies doing business within Vanuatu are also subject to this exemption but may be subject to other fees or taxes.

Value Added Tax (VAT)

Vanuatu levies a Value Added Tax (VAT) on most goods and services at a rate of 15%. This rate may be subject to change, and it's essential to verify the current rate. Some goods and services are exempt, while others are zero-rated (taxable at 0%). Businesses registered for VAT charge VAT on their sales but can claim a credit for the VAT they paid on their purchases. The final consumer bears the burden of the VAT.

Customs Duties

Import duties are levied on goods imported into Vanuatu, with varying rates depending on the specific items. Certain sectors, such as tourism, manufacturing, and mineral exploration, may qualify for exemptions. Personal effects and baggage brought into the country may also have customs concessions. VAT is payable on imported goods at the same time as customs duty, typically when goods are cleared from customs.

Vanuatu National Provident Fund (VNPF)

Both employers and employees are required to contribute to the VNPF. Employees contribute 4% of their gross salary, which is deducted by the employer. Employers also contribute 4% of the employee's salary. These contributions are mandatory for employees earning a minimum monthly salary of VT 3,000. Payments are due to the VNPF by the last day of the month following the salary payment.

Other Taxes and Fees

• Business Licenses: All businesses operating within Vanuatu must obtain a license. Fees vary by business category and turnover.
• Stamp Duty: Applies to transfers of local land leases (2% registration fee and 5% stamp duty) and share transfers in companies.
• Motor Vehicle Tax: An annual tax is levied on all vehicles.
• Work and Residence Permits: Foreign employees require work and residence permits, each with an annual fee.

It's important to note that while Vanuatu offers a low-tax environment, it adheres to international tax reporting standards. It's advisable to seek professional tax advice for specific situations. This information is current as of February 5, 2025, and may be subject to change.