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TL

East Timor

South-Eastern Asia USD

TL · TLS · #154 · 5 cities

Nomad score 44/100 Compare
Top income tax 10.0% Worldwide system
Corporate tax 10.0%
VAT/GST None standard rate
Tax residency 183 days 1 tax treaties

East Timor tax profile

Data year: 2026

Tax system
Worldwide Residents are taxed on worldwide income; non-residents are taxed on Timor-Leste-source income (Taxes and Duties Act 2008, Section 28.4). Resident natural persons pay income tax at 0% on annual taxable income up to USD 6,000 and 10% on the excess; non-resident natural persons and legal persons pay a flat 10% on taxable income (Schedule VI). Employment wages are taxed separately through wage income tax (0% on monthly wages up to USD 500 for residents, 10% above; 10% on all wages for non-residents). There is no VAT; indirect taxes include a 2.5% sales tax on imported goods and a 5% services tax on designated services (hotel, restaurant and bar, telecommunications) above turnover thresholds. The legal tender is USD.
Top PIT rate
10.0%
Corporate tax rate
10.0%
VAT/GST
No VAT/GST
Capital gains tax
10.0% There is no separate capital gains tax. Gains on the disposal of assets (other than personal-use assets) are included in property or business income and taxed at the ordinary income tax rates above (Section 28.3). Dividends received by individuals are exempt income (Section 29(f)).
Social security (employee)
4.0%
Social security (employer)
6.0%
Dividend withholding
10.0%
Interest withholding
10.0%
Royalty withholding
10.0%
Treaty count
1
Tax authority: Autoridade Tributária Timor-Leste Website

Income tax brackets

Corporate
Corporate brackets
Bracket min Bracket max Rate USD equivalent
USD 0 and above 10.0% $0 +
Personal income
Personal income brackets
Bracket min Bracket max Rate USD equivalent
USD 0 USD 6,000 0.0% $0 – $6,000
USD 6,000 and above 10.0% $6,000 +
Local currency: USD

Tax residency

Days threshold
183 days
Residency rules
A resident natural person is present in Timor-Leste for 183 days or more in any 12-month period that starts or ends during the year, unless the person’s permanent place of abode is outside Timor-Leste, or is a Government of Timor-Leste employee posted abroad during the year (Section 1 definition; ATTL guidelines). Resident legal persons are entities incorporated or established in Timor-Leste.
Exit tax
No
CFC rules
No

Filing information

Fiscal year
01-01 – 12-31
Filing deadline
March 31
Business income taxpayers file an annual income tax return for the calendar year; tax due with the return is generally payable by 31 March following the year end. Employees whose only income is wages correctly subject to wage income tax do not file an annual return. Employers remit wage tax monthly by the 15th of the following month and file an annual employer wage withholding form by 31 March.

Sources

Change history

    • Brackets updated

    Refreshed from ATTL and Taxes and Duties Act 2008 — tax_system worldwide, brackets, WHT, social security, filing, authority URL, treaty_count 1, sources (https://attl.gov.tl/annual-income-tax-return-guidelines/) Source

    • Brackets updated

    Refreshed from ATTL and Taxes and Duties Act 2008 — tax_system worldwide, brackets, WHT, social security, filing, authority URL, treaty_count 1, sources (https://attl.gov.tl/annual-income-tax-return-guidelines/) Source

    • Brackets updated

    Refreshed from ATTL and Taxes and Duties Act 2008 — tax_system worldwide, brackets, WHT, social security, filing, authority URL, treaty_count 1, sources (https://attl.gov.tl/annual-income-tax-return-guidelines/) Source

    • Brackets updated

    Refreshed from ATTL and Taxes and Duties Act 2008 — tax_system worldwide, brackets, WHT, social security, filing, authority URL, treaty_count 1, sources (https://attl.gov.tl/annual-income-tax-return-guidelines/) Source

    • Brackets updated

    Refreshed from ATTL and Taxes and Duties Act 2008 — tax_system worldwide, brackets, WHT, social security, filing, authority URL, treaty_count 1, sources (https://attl.gov.tl/annual-income-tax-return-guidelines/) Source

    • Brackets updated

    Refreshed from ATTL and Taxes and Duties Act 2008 — tax_system worldwide, brackets, WHT, social security, filing, authority URL, treaty_count 1, sources (https://attl.gov.tl/annual-income-tax-return-guidelines/) Source

    • Brackets updated

    Refreshed from ATTL and Taxes and Duties Act 2008 — tax_system worldwide, brackets, WHT, social security, filing, authority URL, treaty_count 1, sources (https://attl.gov.tl/annual-income-tax-return-guidelines/) Source

    • Brackets updated

    Refreshed from ATTL and Taxes and Duties Act 2008 — tax_system worldwide, brackets, WHT, social security, filing, authority URL, treaty_count 1, sources (https://attl.gov.tl/annual-income-tax-return-guidelines/) Source

    • Brackets updated

    Refreshed from ATTL and Taxes and Duties Act 2008 — tax_system worldwide, brackets, WHT, social security, filing, authority URL, treaty_count 1, sources (https://attl.gov.tl/annual-income-tax-return-guidelines/) Source

    • Brackets updated

    Refreshed from ATTL and Taxes and Duties Act 2008 — tax_system worldwide, brackets, WHT, social security, filing, authority URL, treaty_count 1, sources (https://attl.gov.tl/annual-income-tax-return-guidelines/) Source

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