Individual Income Tax

Income Tax is paid on all income earned in the Cook Islands and all worldwide income received by Cook Island tax residents.

Taxpayers are required to file annual income tax returns. Individual income tax returns are due on 1 March the following year.

The Cook Islands tax year is 1 January - 31 December. Tax payments due to RMD 1 October. Subject to additional tax as of 1 November.

Example: Income received in tax year 2018. Declared 1 March 2019. Tax payable 1 October 2019. Subject to additional tax 1 November 2019.

Businesses not incorporated, such as most shops, must declare their revenue as personal income, either as a sole proprietor or in a partnership.

Individual income tax rates for the 2020 period are as follows:

 Taxable Income  Rate  Tax on this Income
 Income under 12,800  Tax Free  Nil
 Income from 12,801 - 30,000  17%  17c for each $1 over $12,800
 Income from 30,001 - 80,000  27%  *$2,924 plus 27c for each $1 over $30,00
 Income from 80,001 plus  30%  *$16,242 plus 30c for each $1 over $80,000

*For income earned above the tax free threshold, the tax payable must be calculated at each income bracket. For example, the tax payable on income between 12,801 – 30,000 is $2,924 (taxed at17% or 17c for each dollar). An income balance after the 30,000 is then taxed at 27c for each dollar. Same applies to income earned over 80,000. Add the tax payable at each income bracket (if more than one) to get your total tax payable.

Note: the $12,800 exemption (as of 1 January 2020) is for a full year of residence in the Cook Islands. The exemption is apportioned to the number of days of residence for individuals who have not been present in the Cook Islands for a full year.

Secondary Tax Code Application Form

Updated 21.08.2020 (PD)