Company Tax

A resident company is charged at the rate of 27% in its global taxable income while non-resident is charged at the rate of 27% on its taxable income derived from the Samoa source. Note that company income tax rate was 29% but now reduced to 27% as from 01 January 2007.

Small Business Tax

The taxable income of the sole trader is subject to income tax at progressive rates set out in the Income Tax Rates 1974, depending on the level of taxable income (or net profit) derived by the taxpayers. Note that there is now a reduction of the income tax top rate from 29% to 27% and the threshold amount of non taxable income has increased from SAT10,000 to SAT12,000 as from 01 January 2007.

Applicable progressive rates on small business annual income is summarized below which are the same rates applicable for individual’s (i.e. employee) salary and wage income.