Tonga corporate tax rate
Income tax on the chargeable income of a company. Tonga applies a single flat rate to both resident and non-resident companies, with no reduced small-company rate on the standard scale (very small traders may instead fall under the separate small business tax). Imposed under the Income Tax Act 2007 (Act 10 of 2007) by Ministerial Order made with Cabinet approval, administered by the Ministry of Revenue and Customs.
| Current value | 25 percent |
|---|---|
| In force from | 2021-07-01 |
| Official source | Ministry of Revenue and Customs — 'Company/Partnership/Corporative Society/Trust', Business Income Tax Rates: 'Both resident and non-residents companies pay 25% on their chargeable income'; statutory basis Income Tax Act 2007, s.5 (rates imposed by Order of the Minister with the approval of Cabinet) |
| Last verified | 2026-07-23 |
| Verification | primary — No verification limitation recorded — read from the official source cited. |
| Provenance | source fingerprint |
What this value means
TRAP — THE RATE IS NOT IN THE ACT. Income Tax Act 2007 s.5(1) provides only that 'The Minister shall, with the approval of Cabinet by Order impose, revoke, suspend, reduce or increase income tax for each fiscal year on a person who has chargeable income for the year', and s.5(2) computes tax 'by applying the rate or rates of tax applicable to the person under the Order'. Reading the Act alone yields NO rate; the operative figure lives in the Income Tax Order, and the served value is therefore taken from the revenue authority's own published rate statement. 25% is a genuinely flat corporate rate — the same for resident and non-resident companies — and a partnership is treated as a company under the Act, so partnership profits are taxed at 25% before distribution (dividends paid by a resident company to resident partners are then not taxed again). Residence test (s.4 / MORC): a company is resident if incorporated, created or formed in Tonga, or if the centre of its administrative management is in Tonga at any time in the fiscal year, or if it is a partnership with any resident partner at any time in the year — one resident partner makes the whole partnership resident. Sector carve-outs inside the Act, unchanged: mining licensees (s.67D(3)) and petroleum contractors (s.67P(3)) are also taxed at 25%, so there is no divergent extractives rate. Separate regime not modelled here: very small traders may be taxed under the SMALL BUSINESS TAX (s.8, Third Schedule) as a fixed dollar amount rather than a percentage — TOP 100 on annual gross turnover of $10,000 or less, $250 for $10,001-$30,000, $500 for $30,001-$50,000 — this is a lump sum, not a rate, and must not be converted into a percentage. The AGO alphabetical index shows the most recent amendment to the principal Act as the Income Tax (Amendment) Act 2020, and MORC published no rate change in its news feed through 31 March 2026. ACCESS PROBLEMS: revenue.gov.to serves an incomplete TLS certificate chain and needs relaxed validation; MORC's Tax Legislations index is stale (its newest income tax item is the Income Tax (Amendment) Order 2017 and it does not publish the Order that set the current rates); the AGO 'acts by year' browse is JavaScript-driven and returns 404 on a plain ?year= query, so the amending Order PDF could not be retrieved directly — re-verify the Order text if the rate is ever reported to have moved.
Get it programmatically
curl https://ausref.dev/v1/to/corporate-tax
# $0.001 per call — x402 on Base (USDC). No key, no signup.
# History: curl https://ausref.dev/v1/to/corporate-tax/history?from=2020-01-01
# Provenance: curl https://ausref.dev/provenance/to/corporate-taxOther Tonga series: policy interest rate · VAT rate · minimum wage · public holidays · inflation rate (CPI) · income tax rates