Question 1

What is the standard Corporate Income Tax (CIT) rate in Timor-Leste?

Accepted Answer

Under the Taxes and Duties Act (Law No. 8/2008), the standard corporate income tax rate is 10% on net taxable commercial profits.

Question 2

What is the Minimum Income Tax (MIT) on corporate turnover?

Accepted Answer

Companies are subject to a minimum income tax of 0.5% on gross annual turnover, payable as monthly installments credited against the annual 10% CIT liability.

Question 3

What tax incentives are available under the Private Investment Law (TradeInvest)?

Accepted Answer

Qualifying domestic and foreign investments can receive corporate tax exemptions and customs duty relief for 5 to 10 years depending on the investment zone (Special Zones like Oecusse-Ambeno or rural zones).

Question 4

How long can tax operating losses be carried forward in Timor-Leste?

Accepted Answer

Tax losses incurred in ordinary business operations can be carried forward for up to three (3) consecutive tax years to offset against future taxable profits.

Question 5

When must the annual corporate income tax return (Form 203) be submitted?

Accepted Answer

The annual corporate tax return must be filed and final tax settled on or before the last business day of March following the end of the tax year.

Timor-Leste Corporate Income Tax (CIT) Calculator

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Statutory Calculation Breakdown

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📊 Tabela Comparativa Estatutaria de Timor-Leste (Autoridade Tributaria & INSS)

Engr. Muhammad Shahzad