Vanuatu has NO personal income tax — your salary is yours to keep!
Vanuatu is one of the world's few zero-tax jurisdictions. No income tax, no capital gains tax, no inheritance tax, no wealth tax. The only payroll deduction is VNPF 4% (national provident fund). Your gross salary is essentially your net salary!
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📌 Vanuatu — Zero Tax Paradise:No Income Tax: Salaries, wages, dividends, interest — all tax-free. No Capital Gains Tax: Profits from asset sales are untaxed. No Inheritance Tax: Wealth transfers are tax-free. No Wealth Tax: No tax on net worth. No Withholding Tax: Dividends, interest, and royalties paid to non-residents are not taxed. VNPF: Only mandatory deduction — employee 4%, employer 4%. Government revenue: Funded entirely by VAT (15%), customs duties (0-25%), and business license fees. Currency: Vanuatu Vatu (VUV/VT), ~120 VUV = 1 USD. GDP: ~US$1 billion. Population: ~320,000.
📊 Vanuatu Tax Rates Overview 2026
🌟 ZERO Direct Taxation
One of the world's most favorable tax systems
Tax Type
Rate
Details
Personal Income Tax
0%
NO income tax — zero!
Corporate Income Tax
0%
NO corporate tax — zero!
Capital Gains Tax
0%
No CGT
Inheritance / Estate Tax
0%
No inheritance tax
Withholding Tax
0%
No WHT on dividends/interest/royalties
Dividend Tax
0%
Tax-free dividends
VAT (Standard)
15%
Goods & Services Tax
VNPF Employee
4%
National Provident Fund
VNPF Employer
4%
Employer contribution
Customs Duty (Max)
0-25%
Depending on product type
Stamp Duty (Property)
2-5%
On property transactions
Business License
VT 5K-50K
Annual fee by activity type
📌 Tax System Overview:
Vanuatu operates one of the world's most favorable tax systems. Government revenue is derived entirely from indirect taxes: VAT (15%), customs duties (0-25%), business license fees, and stamp duty. No direct taxes are levied on individuals or corporations. VAT registration: Mandatory for businesses with annual turnover exceeding VT 4,000,000 (~USD 33,600). Zero-rated VAT: Basic unprocessed foods, prescription medicines, education services, healthcare, exports. Customs duties: 0-25% on imports; essential goods and industrial equipment receive reduced rates; luxury items face higher duties. VNPF: Mandatory provident fund — employee 4%, employer 4% (combined 8%). Offshore companies: International companies conducting business exclusively outside Vanuatu pay zero tax. CRS/FATCA: Vanuatu participates in automatic information exchange. Currency: Vanuatu Vatu (VUV), ~120 VUV = 1 USD.
🏦 VNPF Calculator (Vanuatu National Provident Fund)
VNPF: Employee 4%. Employer 4%. Combined: 8%. Individual capitalization account. Withdrawable at age 55, permanent departure, disability, or first home purchase.
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📌 VNPF 2026:Employee (4%): Mandatory deduction from gross salary. Employer (4%): Compulsory employer contribution. Must be remitted monthly to VNPF. Combined (8%): Total monthly contribution to individual account. Withdrawal age: 55 years (retirement). Early withdrawal: Allowed for permanent departure from Vanuatu, disability, or first home purchase. Individual accounts: Each member has a personal capitalization account accumulating contributions and interest. Investment returns: VNPF invests in government securities, real estate, and equities. Historically 3-5% p.a. Death benefit: Balance paid to nominated beneficiaries. Self-employed: May join voluntarily. Foreign workers: Full withdrawal upon permanent departure. No healthcare coverage: VNPF does not cover routine healthcare — secure international health insurance separately.
🧾 VAT Calculator (Value Added Tax)
Vanuatu VAT standard rate: 15%. Registration threshold: VT 4,000,000/year. Input tax credits available. Primary government revenue source.
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📌 VAT 2026:15% (Standard): Most goods & services supplied within Vanuatu and imports. Zero-rated: Basic unprocessed foods, prescription medicines, education services, certain healthcare, exports. Exempt: Financial services. Registration threshold: VT 4,000,000/year turnover (~USD 33,600, mandatory). Input tax credits: Registered businesses can claim VAT on purchases. Filing: Monthly or quarterly returns depending on business volume. Customs duties: Separate from VAT — 0-25% on imports depending on product. Essential goods: Reduced or zero customs duty rates. Luxury items: Higher customs duty rates apply. Regional agreements: Pacific trade agreements may reduce duties on goods from Pacific countries.
🏢 Business Cost Calculator
No corporate tax! But businesses face: VAT 15%, customs duties 0-25%, stamp duty 2-5%, and business license fees. Calculate your import costs and property transactions.
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🏠 Employer Cost — Total Employment Cost
Calculate total employer cost. No payroll tax beyond VNPF 4%. No income tax withholding needed.
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📌 Business & Employment Notes:No corporate tax: Vanuatu has 0% corporate income tax. No payroll tax: Beyond VNPF 4%, no additional payroll taxes. No income tax withholding: Employers don't need to withhold income tax. VNPF employer (4%): Only mandatory employer contribution. Business license: VT 5,000-50,000/year depending on activity type. VIPA approval: Required for sensitive sectors (real estate, tourism, import-export, financial services) — typically minimum USD 50,000 investment for residency permits. Customs duties: 0-25% on imports; essential goods reduced rates; luxury items higher rates. Stamp duty: 2-5% on property transactions. VAT: 15% on most goods/services; registration mandatory above VT 4M/year. Employment law: Written contracts required; 12 days annual paid leave; 40-44 hour standard work week; minimum wage applies. Offshore companies: International companies operating outside Vanuatu pay zero tax on worldwide income.