- Income tax brackets updated
Refreshed from ATTL and Taxes and Duties Act 2008: worldwide tax system, brackets, WHT, social security, filing, authority URL, treaty count 1, sources (attl.gov.tl) Source
TL
East Timor
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
Income tax brackets
Corporate
| Bracket min | Bracket max | Rate |
|---|---|---|
| USD 0 | and above | 10.0% |
Personal income
| Bracket min | Bracket max | Rate |
|---|---|---|
| USD 0 | USD 6,000 | 0.0% |
| USD 6,000 | and above | 10.0% |
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
Sources
- ATTL — Annual income tax return guidelines (accessed Oct 9, 2026) Resident PIT brackets, residency test, business filing rules
- ATTL — Wage income tax (accessed Oct 9, 2026) Monthly wage withholding for residents and non-residents; employer annual form due 31 March
- Taxes and Duties Act 2008 (English consolidation) (accessed Oct 9, 2026) Worldwide income for residents, source rules, CIT and WHT rates, sales and services taxes, social-security context
- TradeInvest Timor-Leste — Personal taxation factsheet (accessed Oct 9, 2026) Cross-check PIT/CIT, filing deadline, treaty references, social security 4%/6%
Change history
-
-
- Income tax brackets updated
Refreshed from ATTL and Taxes and Duties Act 2008: worldwide tax system, brackets, WHT, social security, filing, authority URL, treaty count 1, sources (attl.gov.tl) Source
-
- Income tax brackets updated
Refreshed from ATTL and Taxes and Duties Act 2008: worldwide tax system, brackets, WHT, social security, filing, authority URL, treaty count 1, sources (attl.gov.tl) Source
-
- Income tax brackets updated
Refreshed from ATTL and Taxes and Duties Act 2008: worldwide tax system, brackets, WHT, social security, filing, authority URL, treaty count 1, sources (attl.gov.tl) Source
-
- Income tax brackets updated
Refreshed from ATTL and Taxes and Duties Act 2008: worldwide tax system, brackets, WHT, social security, filing, authority URL, treaty count 1, sources (attl.gov.tl) Source
-
- Income tax brackets updated
Refreshed from ATTL and Taxes and Duties Act 2008: worldwide tax system, brackets, WHT, social security, filing, authority URL, treaty count 1, sources (attl.gov.tl) Source
-
- Income tax brackets updated
Refreshed from ATTL and Taxes and Duties Act 2008: worldwide tax system, brackets, WHT, social security, filing, authority URL, treaty count 1, sources (attl.gov.tl) Source
-
- Income tax brackets updated
Refreshed from ATTL and Taxes and Duties Act 2008: worldwide tax system, brackets, WHT, social security, filing, authority URL, treaty count 1, sources (attl.gov.tl) Source
-
- Income tax brackets updated
Refreshed from ATTL and Taxes and Duties Act 2008: worldwide tax system, brackets, WHT, social security, filing, authority URL, treaty count 1, sources (attl.gov.tl) Source
-
- Income tax brackets updated
Refreshed from ATTL and Taxes and Duties Act 2008: worldwide tax system, brackets, WHT, social security, filing, authority URL, treaty count 1, sources (attl.gov.tl) Source