Find Accountancy, Audit and Tax expertise in Tuvalu
There are very few accountants in Tuvalu and a virtual absence of firms. The country’s few accountants are in-house affiliates to local corporations such as the Telecoms Company and the Tuvalu Philatelic Bureau. Public sector audits are performed by the government audit office which is home to the auditor general and the senior auditor. The Companies Act (2008) stipulates that companies must appoint an auditor to prepare a financial report on an annual basis. There is partial adoption of the International Financial Reporting Standards (IFRS) with some companies and entities complying with the guidelines but with no obligation to do so.
There is no professional body for accounting professionals in Tuvalu. It is possible to follow Association of Chartered Certified Accountants (ACCA) courses online and to sit the exams in Australia or New Zealand.
The Income Tax Act 1992 stipulates the rate of income tax for those individual earning more than AUD$4,000, whereby non-individual and local entities are taxed at 30% and 40% for foreign entities. Business income is taxed on net profits, however exemptions may be applied. Additional taxes put in place include taxes on dividends, rents, and royalties. Sales tax is imposed on imported goods. Customs duties are placed on all imports and a special import levy applies in addition to the normal customs duties. Most capital items, including plant, machinery and vehicles for newly established businesses, are exempt from duty upon application and all building materials are imported duty free.