Solomon Islands Tax Rates
The Solomon Islands operates a progressive income tax system administered by the Inland Revenue Division of the Ministry of Finance and Treasury. As a small island developing state, the country relies heavily on logging, fishing, and aid revenues. The tax system includes a goods tax on imports and selected domestic goods, personal and corporate income taxes, and various withholding taxes. There is no VAT/GST, though a goods tax applies to certain items.
Top Income Tax Rate
40%
Corporate Tax Rate
30%
VAT / Sales Tax
0%
Capital Gains Tax
0%
Detailed Tax Information
Income Tax Brackets
The Solomon Islands uses a progressive income tax system with a tax-free threshold of SBD 15,000. Income from SBD 15,001 to SBD 30,000 is taxed at 11%, SBD 30,001 to SBD 60,000 at 23%, SBD 60,001 to SBD 90,000 at 35%, and income exceeding SBD 90,000 at 40%. Employment income is subject to PAYE withholding by employers.
| Income Range | Tax Rate |
|---|---|
| SI$0 – SI$15K | 0% |
| SI$15K – SI$30K | 11% |
| SI$30K – SI$60K | 23% |
| SI$60K – SI$90K | 35% |
| SI$90K+ | 40% |
Corporate Tax
The standard corporate tax rate in the Solomon Islands is 30% for resident companies. Non-resident companies are also taxed at 30% on Solomon Islands-sourced income. The mining and forestry sectors are subject to specific tax provisions. Tax incentives are available for approved investments, including pioneer industry tax holidays and accelerated depreciation for qualifying assets.
Standard Rate
30%
Capital Gains Tax
The Solomon Islands does not impose a capital gains tax. Gains from the disposal of capital assets are generally not subject to income tax unless the disposal constitutes a trading activity that generates ordinary income.
Rate
0%
VAT / Sales Tax
The Solomon Islands does not have a VAT or GST system. Instead, a goods tax is levied on imported goods and selected domestically manufactured goods at various rates. Import duties also apply to goods entering the country. The government has considered introducing a broad-based consumption tax but has not yet implemented one.
Standard Rate
0%
Cryptocurrency Tax
The Solomon Islands does not have specific legislation or guidance on cryptocurrency taxation. The Central Bank of Solomon Islands has not issued formal regulations on digital currencies. Any income from crypto activities would theoretically fall under general income tax provisions if conducted as a business activity.
Tax Treaties
The Solomon Islands has a very limited tax treaty network, with a double taxation agreement inherited from the colonial era with the United Kingdom. The country is working to develop its international tax relationships as it seeks to attract foreign investment.
Treaty Network
1
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Solomon Islands
See how much you could save by moving here from your current country.
$-3,687
Tax in United States
$24K
24.4% effective
Tax in Solomon Islands
$28K
28.0% effective
Additional Cost
15.1%
more tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
