The economy of Vanuatu 

The economy of Vanuatu is largely dependent on agriculture, fishing, and tourism. Agriculture is the mainstay of the economy, accounting for about one-third of GDP and providing employment for two-thirds of the population. The main agricultural exports are copra, kava, beef, and cocoa. Fishing is also an important sector, with tuna being the main export. Tourism is a major source of foreign exchange, with over 200,000 visitors per year. The government has also been encouraging foreign investment in the tourism sector. Other important industries include manufacturing, construction, and financial services.

How does Vanuatu regulate financial markets?  

Vanuatu regulates financial markets through its Financial Services Commission (FSC). The FSC is responsible for the licensing, supervision, and regulation of all financial services providers in the country, including banks, insurance companies, money remitters, and other financial institutions. The FSC also monitors and enforces compliance with the country’s financial regulations and laws. The FSC works closely with the Reserve Bank of Vanuatu to ensure the stability of the country’s financial system.

How to register a company in Vanuatu?  

1. Choose a Company Name: The first step in registering a company in Vanuatu is to choose a company name. The name must not be identical or similar to any existing company name, and must not be offensive or misleading.  

2. Prepare the Company Documents: The company documents must be prepared in accordance with the Companies Act and must include the Memorandum of Association, Articles of Association and the Register of Directors.  

3. Submit the Documents to the Registrar: The documents must be submitted to the Registrar of Companies in Vanuatu. The Registrar will review the documents and issue a Certificate of Incorporation if all requirements are met.  

4. Register the Company with the Tax Office: The company must be registered with the Vanuatu Tax Office in order to obtain a Tax Identification Number (TIN).  

5. Open a Bank Account: The company must open a bank account in order to receive payments and make payments.  

6. Obtain a Business License: The company must obtain a business license from the Vanuatu Investment Promotion Authority (VIPA) in order to operate legally.  

7. Register for VAT: The company must register for Value Added Tax (VAT) in order to charge and collect VAT from customers.  

8. Register Employees: The company must register all employees with the Vanuatu Department of Labour in order to comply with labour laws.

Taxation in Vanuatu

 

Vanuatu is a small island nation located in the South Pacific Ocean.t has a population of approximately 270,000 people and a total land area of 12,189 km2. The country has a small and open economy, with a Gross Domestic Product (GDP) of US$1.4 billion in 2019.

Vanuatu has a relatively simple taxation system, with a flat rate of 15% for both individuals and companies. The government also levies a Value Added Tax (VAT) of 12.5%. There is no capital gains tax, inheritance tax, or payroll tax. 

Income tax is the main source of revenue for the government, accounting for around 60% of total revenue. Other sources of revenue include customs duties, stamp duties, and taxes on goods and services.  

The government also provides various tax incentives, such as tax holidays and tax deductions, to encourage foreign investment. In addition, the government has implemented a number of tax reforms in recent years, including the introduction of a new tax on the sale of luxury goods and services.  

Vanuatu is a member of the Organisation for Economic Co-operation and Development (OECD) and the Pacific Islands Forum (PIF). It is also a signatory to the Pacific Agreement on Closer Economic Relations (PACER) Plus.