- Top income tax rate 20 25
- Capital gains tax rate none 25
- Income tax brackets updated
Top income tax
25.0%
Worldwide system
Corporate tax
25.0%
Consumption Tax
15.0%
standard rate
Tax residency
183 days
Tonga tax profile
Data year: 2026
- Tax system
- Worldwide Residents are taxed on worldwide income; non-residents on Tongan-source income (Income Tax Act 2007). The fiscal year is the calendar year. Employment income is subject to PAYE on gross pay with no personal deductions at source. Companies and other businesses pay income tax on chargeable income (net profit, including gains on business assets) at a flat 25%. Consumption tax at 15% applies to most taxable supplies and imports. Qualifying small businesses with annual gross turnover under TOP 100,000 may pay small business tax at 2% of quarterly gross turnover instead of normal income tax when not registered for consumption tax.
- Top PIT rate
- 25.0%
- Corporate tax rate
- 25.0%
- Consumption Tax
- 15.0%
- Capital gains tax
- 25.0% There is no separate capital gains tax schedule. Gains on the disposal of business assets are included in business income and taxed at the 25% company rate or at progressive personal rates (up to 25%) for sole traders and individuals.
- Social security (employee)
- 5.0%
- Social security (employer)
- 7.5%
- Dividend withholding
- 15.0%
- Interest withholding
- 15.0%
- Royalty withholding
- 15.0%
- Treaty count
- Treaty count not recorded
Income tax brackets
Corporate
| Bracket min | Bracket max | Rate |
|---|---|---|
| TOP 0 | and above | 25.0% |
Personal income
| Bracket min | Bracket max | Rate |
|---|---|---|
| TOP 0 | TOP 12,000 | 0.0% |
| TOP 12,001 | TOP 30,000 | 10.0% |
| TOP 30,001 | TOP 50,000 | 15.0% |
| TOP 50,001 | TOP 70,000 | 20.0% |
| TOP 70,001 | and above | 25.0% |
Tax residency
- Days threshold
- 183 days
- Residency rules
- An individual is a resident for a fiscal year if they have a home in Tonga at any time during the year, are present in Tonga for 183 days in any 12-month period that commences or ends during the year, or are a Government of Tonga employee posted abroad. Part-year arrival and departure rules apply when residency status changes between years. A company is resident if incorporated in Tonga, has its centre of administrative management in Tonga during the year, or is a partnership with any resident partner.
- Exit tax
- No
- CFC rules
- No
Filing information
- Fiscal year
- 01-01 – 12-31
- Filing deadline
- October 31
Sources
- MORC — Individual employee (PAYE) (accessed Oct 9, 2026) Progressive employment income rates from 1 July 2021; no employee deductions
- MORC — Company, partnership and trust (accessed Oct 9, 2026) CIT 25% on chargeable income; company residence tests
- MORC — Consumption tax overview (accessed Oct 9, 2026) Standard CT 15% from 1 April 2005
- MORC — Non-residents and visitors (accessed Oct 9, 2026) 183-day and home tests; non-resident WHT 5–15%; source-based liability
- MORC — Tax due dates and extensions (accessed Oct 9, 2026) Annual business returns 31 October; PAYE reconciliation 31 August
- Income Tax Act 2007 (WTO accession text) (accessed Oct 9, 2026) Chargeable income, foreign-source rules, withholding structure
- National Retirement Benefits Fund — contributions (accessed Oct 9, 2026) Cross-check 5% employee and 7.5% employer minimum contributions