Tax in Timor-Leste
Last reviewed: · by TaxProsRated editorial
TL;DR
Timor-Leste's Tax Authority administers personal income tax at progressive 0/10 percent (top 10 percent above USD 6,000 monthly), corporate income tax at 10 percent, and Sales Tax at varying rates. Timor-Leste uses USD as its currency.
Tax authority
Tax Authority under the Ministry of Finance [SC1]. Substantive law: Taxes and Duties Act 2008.
Filing framework
Individual annual returns due 31 March. Corporate annual returns due 31 March. Sales Tax monthly.
Residency
Residents are physically present 183+ days [SC2].
Personal income tax
Two bands: 0 percent up to USD 6,000 monthly; 10 percent above.
Corporate tax
10 percent flat. Petroleum sector under specific Production Sharing Contract framework with elevated rates. Withholding on non-resident dividends 10 percent.
Indirect tax
Sales Tax at varying rates (typically 2.5-5 percent on imports plus specific excise) [SC3]. Timor-Leste does not have credit-method VAT.
Cryptoassets
No dedicated framework.
Treaties
Limited DTT network. ASEAN observer.
Frequently asked
What is the Timor-Leste personal income tax rate?
Two bands: 0 percent up to USD 6,000 monthly; 10 percent above. Timor-Leste uses USD as its currency.
What is the Timor-Leste corporate tax rate?
10 percent flat. Petroleum sector under specific PSC framework. Withholding on non-resident dividends 10 percent.
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The figures, dates, and rules on this page are sourced from the documents listed below. Where two sources disagree, both are listed.
- Tax Authority (Timor-Leste) · accessed
- Government of Timor-Leste · accessed
Important disclaimer
Informational only — not tax advice. This page summarises publicly available information about tax in Timor-Leste as of May 2026. Tax laws change, individual circumstances vary, and the application of any rule depends on your specific facts.
TaxProsRated does not provide tax, legal, accounting, or financial advice. Before acting on anything you read here, consult a qualified tax professional licensed in your jurisdiction (in the US: CPA, Enrolled Agent, or attorney; in the UK: CIOT- or ATT-qualified adviser; in Australia: TPB-registered tax agent; elsewhere: a locally-licensed equivalent). TaxProsRated, its operators, and its contributors disclaim all liability for action taken in reliance on this page.