Timor-Leste Personal Income Tax
Detailed personal income tax rates and rules for Timor-Leste in 2026.
Timor-Leste imposes a flat 10% wage income tax on monthly income exceeding $500. Residents are taxed on worldwide income. Non-residents are subject to 10% withholding on Timor-Leste-sourced income. The simple flat-rate system is designed to be easy to administer.
| Income Range (USD) | Tax Rate |
|---|---|
| $0 – $500 | 0% |
| $501+ | 10% |
Filing Deadline
Monthly withholding by employers; annual returns by March 31
Residency Rule
An individual present in Timor-Leste for more than 183 days in a 12-month period is considered a resident.
Additional Notes
Timor-Leste uses the U.S. dollar as its official currency, simplifying international transactions but limiting monetary policy flexibility.
How Timor-Leste Income Tax compares
Timor-Leste’s top personal income tax rate of 10% is the 169th highest of 203 countries TaxAtlas tracks, below the global average of 27.7% and Asia’s regional average of 22.2%.
