Fiji to Declare Mobile Wallets as Assets in Tax Reforms

The Fiji Revenue and Customs Service (FRCS) has announced that mobile money accounts, including M-PAiSA, will now be recognized as assets that individuals and businesses must declare. In a recent meeting of the Standing Committee on Foreign Affairs and Defence reviewing the FRCS’s 2022–2023 Annual Report, FRCS Director of Taxation Ms. Momina Beg stated that this initiative aims to enhance transparency and accountability in financial reporting.

Ms. Beg indicated that the standard asset declaration will establish a clear date for reporting, specifically December 31st each year. Each asset, including mobile money accounts, will need to be accurately declared, as they are considered equivalent to cash holdings, similar to funds held in traditional bank accounts. This requirement underscores a significant regulatory shift as Fiji progresses toward improving compliance in its taxation system.

To facilitate this transition, the FRCS is currently developing a standardized asset declaration form that will help taxpayers understand exactly what assets they are required to report. This new measure is also consistent with broader efforts in Fiji to combat tax evasion, particularly through enforcing the use of Tax Identification Numbers (TINs) for users of mobile wallets, as highlighted in previous articles. With recent regulations requiring users to submit valid identification documents to access M-PAiSA services, the government is striving for a more regulated and accountable financial environment.

The integration of M-PAiSA into the formal economy reflects Fiji’s commitment to enhancing financial integrity and addresses issues related to the shadow economy. Through collaboration with financial institutions and advancements in regulatory frameworks, the government aims to ensure that all citizens and businesses contribute fairly to national development, thus promoting economic accessibility and fairness.

As Fiji navigates these changes, it is poised to witness a positive transformation in its economic landscape. This move towards inclusivity via digital financial services demonstrates a proactive approach to fostering economic stability and prosperity for all citizens, paving the way for a more transparent financial system in the future.