Latitax

Not a Latitax destination

Timor-Leste

Very low flat rates (reportedly 10% on wages and profits) in a US-dollar economy, but no UK treaty and the figures here are not yet confirmed against the tax authority.

Income tax, top rate

Unverified

10%

Reported as 10% on resident wage income above USD 500 a month; not confirmed against the Ministry of Finance.

Source: Timor-Leste Ministry of Finance (rates not read; best readings) · checked 2026-09-29

Capital gains

Unverified

10% (as income)

No separate CGT reported; gains taxed as income. Unconfirmed.

Source: Timor-Leste Ministry of Finance (rates not read; best readings) · checked 2026-09-29

Corporate

Unverified

10%

Reported income tax rate on business profits; unconfirmed.

Source: Timor-Leste Ministry of Finance (rates not read; best readings) · checked 2026-09-29

VAT

Unverified

2.5% sales tax

Reported sales tax rate; a move to VAT has been discussed. Unconfirmed.

Source: Timor-Leste Ministry of Finance (rates not read; best readings) · checked 2026-09-29

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  1. s1Timor-Leste Ministry of Finance (rates not read; best readings)primary · checked 2026-09-29
  2. s2GOV.UK - Tax treatiesprimary · checked 2026-09-29