Press Release 34 –
Foreign Currency Accounts Scheme in Fiji
Press Release No : 34/2008
Date : 30/12/2008
As part of the initiative to assist Fiji’s balance of payments, the Interim Prime Minister and Minister for Finance announced the opening of Foreign Currency Accounts Scheme in Fiji for non-residents. This new initiative by the Government of Fiji will be effective
from 1 January 2009.
The Scheme offers tax-exemption on interest earned on term deposits held with local banks and deposit taking institutions. Under the Scheme, non-residents can either hold foreign currency denominated deposits or Fiji dollar accounts. However, on foreign currency deposits, investors with deposits of more than the equivalent of F$300,000 will be eligible for tax exemptions on the interest income. However, participants are encouraged to hold funds in Fiji dollar term deposits as there is no threshold to qualify for tax free exemption on interest income.
Details of the Scheme is attached. The Scheme is expected not only to benefit participants but also the country in terms of the expected foreign exchange that would be brought in. All enquiries can be forwarded to the commercial banks and the Reserve Bank of Fiji.