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Income Tax

Person working in Timor-Leste

Income tax is levied on tax subjects:

  • individuals
  • companies
  • undivided estates
  • trusts
  • partnerships
  • government enterprises, and
  • associations, cooperatives and similar organisations.

Types of Income Tax

How Income Tax is Paid

All Businesses are Required to:

 

  • Wage Income Tax

    This tax is deducted from the wages paid to employees and is paid to the Timor-Leste Revenue Service by the employer. Employers are responsible for providing information to employees about Wage Income Tax deducted from employee wages. Employees shoul ... continue reading »

  • Withholding Tax

    Income for certain payments and activities or services is taxed when the income is paid or received. Residents and ‘Timor-Leste Permanent Establishments of Non-residents’ The types of income and rates of tax applicable to residents of Timor-Leste ... continue reading »

  • Income Tax Installments

    All businesses are required to pay income tax installments, either monthly or quarterly. Income tax installment rate Income tax installments are calculated as 0.5% of total turnover of the business enterprise for either the month or quarter. Pay mon ... continue reading »

  • Annual Income Tax Return

    Tax on other income is calculated when you complete an Annual Income Tax Form, which details your assessable income and any expenditure you can deduct against income. Who Must Lodge an Annual Income Tax Return? Each tax subject that derives incom ... continue reading »

  • Businesses Must Register

    Each business operating in Timor-Leste is required to register with the Timor-Leste Revenue Service by completing a registration form. The business will then be issued with a Tax Identification Number (TIN). In addition, businesses are required to ... continue reading »