Vanuatu: corporate tax guide

What the tax system covers

There is no general corporate income tax under the framework described by Vanuatu's government. Business licensing, VAT, gross-rent tax and foreign-investment approvals are separate. Another country may still tax a Vanuatu company through residence, source or shareholder-attribution rules.

When a company becomes tax resident

Vanuatu's lack of a general income-tax system means that the residence question is not an ordinary worldwide-income charge. Its reporting guidance still requires reliable residence self-certification for financial accounts. A local passport or permit does not remove a residence connection to another country; record where the person actually lives and where the business is controlled.

Rates and the tax base

No general income tax. Vanuatu does not impose a general income tax. VAT, business licensing and other domestic charges, and tax imposed by a foreign residence or source country, remain separate obligations.

Outbound dividends, interest and royalties

Dividends: 0%. The national investment-promotion agency expressly states that Vanuatu imposes no withholding taxes. This is the domestic outbound-payment position, not an exemption from tax in the recipient’s jurisdiction or from Vanuatu’s separate business and indirect-tax obligations.

Interest: 0%. The national investment-promotion agency expressly states that Vanuatu imposes no withholding taxes. This is the domestic outbound-payment position, not an exemption from tax in the recipient’s jurisdiction or from Vanuatu’s separate business and indirect-tax obligations.

Royalties: 0%. The national investment-promotion agency expressly states that Vanuatu imposes no withholding taxes. This is the domestic outbound-payment position, not an exemption from tax in the recipient’s jurisdiction or from Vanuatu’s separate business and indirect-tax obligations.

VAT is a real operating cost and compliance system

Customs and Inland Revenue states a 15% VAT rate on most taxable supplies by registered persons and on most imports. The relevant framework includes the VAT Act, Cap 247, and the Tax Administration Act 37 of 2018. Registration is required when taxable supplies exceed, or are expected to exceed, VT4 million in a twelve-month period; voluntary registration can be available below that level.

Track taxable turnover rather than waiting for annual accounts. Determine which entity makes the supply and retain invoices supporting output tax and any input claim. Import VAT may affect working capital even when an export or other sale has different treatment. The absence of a conventional income-tax headline should never be used as shorthand for a business having no tax obligations.

The official guidance excludes certain activities from the definition of taxable activity, including activities carried on by international companies. That is a legal entity-and-activity distinction to verify under the relevant legislation, not a label any company can adopt because it sells abroad.

Exempt and zero-rated supplies are different

The official VAT explanation identifies residential rental accommodation and certain financial and educational supplies as exempt. It also identifies categories of zero-rated supply, including qualifying exports and certain services to nonresidents outside Vanuatu. The precise facts and statutory conditions must be checked before applying either treatment.

An exempt activity generally does not charge VAT and does not recover the related input tax. A zero-rated taxable supply can retain input-tax recovery. For an international service business, record the customer, location, nature and use of the service and the evidence supporting the selected category. Mixed activities require a consistent accounting approach; a foreign customer’s address alone is not a complete analysis of every transaction.

Rent tax uses gross receipts and different owner allowances

The rent-tax guide describes a 12.5% tax on gross rental income within the regime. Individuals receive a VT200,000 exemption in each six-month period, while a company does not receive that individual allowance. Expenses such as interest, repairs or management fees do not reduce the gross-rent base in the ordinary calculation described by the guide.

The reporting periods run from December through May and June through November, with payment dates stated in the official guide. Review the VAT interaction for commercial or short-term rentals and whether the landlord is registered. A projected net yield should therefore include the applicable tax rather than multiply the purchase price by an advertised gross rental percentage. Ownership through a company can change the allowance and reporting position.

Business licences and foreign-country taxes remain separate

The business-licensing framework applies to profit-making business activity, requires a TIN and can require approvals from other authorities for particular sectors. Confirm the actual licence category, business activity and renewal responsibilities. Incorporation, foreign-investment approval, immigration permission and the operating licence are separate records.

This research verifies the local VAT, rent-tax and licence mechanisms above; it does not establish a universal absence of every possible direct, transaction, CFC or departure tax. For a cross-border structure, the owner’s residence country may tax worldwide income or attribute retained profits, while effective management or local operations can create company taxation elsewhere. Document where work and decisions occur, and obtain the specific local-law analysis for the proposed arrangement before comparing total costs.

Local business has real registration and tax obligations

Customs and Inland Revenue requires a business licence for profit-making business activity and a tax identification number. Certain activities need additional approvals. Foreign-investor authorisation should be checked before operations start, not treated as an administrative detail that follows the first sale. Assign someone to maintain licences and accounting records after establishment.

VAT is generally 15% on taxable supplies and imports. Registration turns on the statutory taxable-supply threshold, with voluntary registration possible in some cases. Exempt and zero-rated supplies have different input-tax consequences. A business serving overseas customers should analyse the actual supply and evidence for its treatment; simply invoicing in foreign currency does not establish that every receipt is outside VAT.

Repatriating income and documenting the payment

The investment agency’s explicit no-withholding statement supports the outbound dividend, interest and royalty comparison. It does not determine the recipient’s foreign tax treatment. Keep the company resolution, loan or licence supporting the payment and reconcile it to the accounts; the receiving country may treat each category differently. VAT, rent tax and business-licence obligations remain separate from withholding.

This evidence is a national investment-agency statement on an undated public page, checked on 12 October 2026. It is not a transaction-specific tax ruling or a complete review of every sectoral charge.

Foreign companies and income attribution

No domestic CFC income-tax charge is identified within the general framework described by the revenue authority, which states that Vanuatu has no income-tax system. This does not prevent another country from attributing income of a Vanuatu entity to its resident owners.

Departure, migration and continuing obligations

Personal departure does not cancel company licences, VAT or rent obligations. Transaction-specific closing and receiving-country rules require separate review.