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 income year in the Cook Islands is 1 January - 31 December. The due date for payment of terminal tax is 1 October the following year.
Individual Income Tax
Businesses not legally incorporated, such as most shops, must declare their revenue as personal income, either as a sole proprietor or in a partnership, whatever the case may be.
Individual income tax rates are as follows:
- 0 - $11,000 exempt
- $11,001 - $30,000 17.5%
- $30,001 - $80,000 27.5%
- $80,001 & above 30%
Note: the $11,000 exemption is for a full year of residence in the Cook Islands. The exemption is apportioned to days resident for individuals who have not been resident for a full year.
Non residents only receive the exemption for the days they are personally present in the Cook Islands.