Fiji’s Revenue and Customs Service (FRCS) has unveiled new taxation measures aimed at improving oversight of transactions conducted through e-wallets, as part of the 2025-2026 budget announced recently. To enhance tax compliance and tackle issues related to tax evasion and money laundering, businesses will be mandated to maintain separate e-wallet accounts for business transactions.
The regulations, included in the Tax Administration Act, stipulate that non-compliance can lead to severe penalties, including fines of up to $25,000 or imprisonment for up to ten years, or both. Furthermore, individuals will be required to provide a Tax Identification Number (TIN) when registering for mobile wallet accounts and when purchasing new SIM cards. This TIN requirement must be implemented by December 31, 2025.
Additionally, e-wallets and their associated services will be exempt from Value Added Tax (VAT), while any unexplained or unidentified deposits credited to taxpayer e-wallet accounts will be included in the computation of gross income if they can be traced to the individual.
The initiative reflects Fiji’s broader commitment to addressing its underground economy. Previous efforts highlighted the establishment of a specialized tax crime task force, which aims to investigate unreported economic activities and combat tax evasion actively. This collaboration includes partnering with international entities such as the Australian Tax Office to enhance transparency and efficiency in tax administration.
By pursuing these new measures, Fiji aims to create a fairer economic environment. The government’s proactive strategies signal progress toward greater accountability and financial integrity, asserting that all citizens must contribute their fair share to support national development. Such initiatives are vital for fostering long-term economic stability and sustainability in Fiji.
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