The Payer’s Tax Obligation on International Payments (Sections 90, 117 & 121 – Income Tax Act)

Under Sections 90, 117, and 121 of the Kiribati Income Tax Act, any person or entity making payments to non-residents for services, interest, royalties, or other income sourced in Kiribati is legally required to withhold tax at the applicable rate and remit it to the Kiribati Tax Office. This withholding ensures that income earned in Kiribati by non-residents is properly taxed, even if the recipients are located overseas.

Failure to comply may result in penalties, interest, or disallowance of deductions. Payers must ensure they understand their obligations, apply the correct withholding rate, and submit payments and documentation on time.

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