No tax to overseas agents promoting operators in Solomon Islands

Asia-Pacific

The Solomon Island’s government is to implement a plan to make sure tourist operators in Solomon Islands who have agents’ overseas working on their bookings and arrangements to be relieved of paying taxes which are…

The Solomon Island’s government is to implement a plan to make sure tourist operators in Solomon Islands who have agents’ overseas working on their bookings and arrangements to be relieved of paying taxes which are currently being charged.

Minister for Finance and Treasury Gordon Darcy announced that Tourist Operators will not be required to withhold tax from certain payments made to offshore agents. Mr Darcy said this is good news to Tourist Operators.

the Minister of Finance, Hon Gordon Darcy Lilo said.

Tourist operators who make payments to offshore agents to facilitate the booking of holidays, dive trips, and accommodation will be exempted from the requirement to withhold tax provided commissions do not exceed the international industry standard of 10 percent. Any payment in excess of that amount will be still liable for the withholding tax.

“The small amount of revenue the Government will forgo will be more than offset by the fiscal and economic gains of an efficient, competitive and well operating tourism industry,” he said.

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