Timor-Leste Corporate Income Tax
Detailed corporate income tax rates and rules for Timor-Leste in 2026.
Corporate TaxUSD
Timor-Leste's income tax on business activities is 10% of taxable income. Petroleum operations in the Joint Petroleum Development Area (JPDA) are subject to a 30% supplemental tax in addition to the standard rate. Contractors and subcontractors in the petroleum sector face specific withholding requirements.
Standard Rate
10%
Additional Notes
The low 10% corporate tax rate is designed to attract foreign investment. Timor-Leste's Special Economic Zone in Oecusse offers additional incentives for qualifying businesses.
How Timor-Leste Corporate Tax compares
Timor-Leste’s corporate tax rate of 10% is the 180th highest of 203 countries TaxAtlas tracks, below the global average of 22.2% and Asia’s regional average of 19.7%.
Timor-Leste
10%
Asia average
19.7%
Global average
22.2%
