Income Tax

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

  • Wage Income Tax paid by employers, and
  • Withholding Tax on various types of income like royalties, rent and income from prizes.

How Income Tax is Paid

  • Income tax installments either monthly or quarterly, and
  • Annual Income Tax Return completed each year by businesses and people who operate businesses.

All Businesses are Required to:

  • Register to operate in Timor-Leste.