Southeast Asia
Timor-Leste: tax at a glance
A 10% flat corporate rate, among the lowest in Asia, with the US dollar as legal tender and a sovereign petroleum fund financing most of the budget. A CPLP member.
Worldwide (residence-based)
Last verified
The taxes
- Personal income (top)
- 10%A flat 10% rate applies to taxable income above the exempt threshold for residents.
- Corporate income
- 10%
- Capital gains
- Included in ordinary income. There is no separate capital gains tax.
- VAT / Sales tax
- None
- Dividends (WHT)
- None
- Interest (WHT)
- 10%
- Royalties (WHT)
- 10%
- Social security (employee)
- None
- Social security (employer)
- None
- Wealth tax
- None
- Inheritance / estate
- None
- Property tax
- No general property tax.
- Other
- The US dollar is legal tender. Petroleum operations are taxed under a separate regime. Timor-Leste is a member of the CPLP and joined ASEAN in 2025.
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Not participating
- Special regime
- Petroleum regime: separate fiscal terms for upstream operations under the Timor Sea arrangements
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.