FRCA CLARIFIES INTEREST EARNED ON SAVINGS

FRCA CEO Jitoko Tikolevu.?

The Fiji Revenue and Customs Authority wishes to clarify that tax on interest earned from your savings or Resident Interest Withholding Tax as it is known, only applies on the interest earned and not on the Principle savings amount.

Chief Executive Officer, Mr. Jitoko Tikolevu has also reiterated that effective 1st January this year, all senior citizens over 55 years and pensioners have been exempted from paying Resident Interest Withholding Tax. However, the interest earned should be the only source of income and is less than $16,000.

?Those who are over 55 years and are earning interest on their savings are urged to come forward to FRCA to obtain certificate of exemption. The certificate of exemption then should be submitted to the respective banks?, Mr. Tikolevu said.

?Exemption also applies where the interest earned is $200 or less in a year. Non-profit organizations are also exempted from Resident Interest Withholding Tax?, Mr. Tikolevu stressed.

FRCA has designed Resident Interest Withholding Tax calculator which people can use to calculate whether they are paying the right amount of tax.

Resident Interest Withholding Tax is a final tax and if deducted correctly, it cannot be refunded.

ENDS