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5.5. Source Rules with Respect to Income Derived by Non-Residents

Income earned by non-residents from sources in Kiribati is subject to tax in the country. The following types of income are considered to be derived/sourced from Kiribati:

  • income derived from a business activity in Kiribati;
  • income derived from the performance of services or employment in Kiribati;
  • rental income from real property, including land, located in Kiribati and gains from the sale of such property;
  • income derived from the sale or licensing of industrial or intellectual property used in Kiribati;
  • income from the sale of intangible property used in Kiribati, other than property used in business or property referred above;
  • interest earned in Kiribati subject to certain conditions;
  • dividends or management fee received from a resident company in Kiribati;
  • payment towards natural resources taken from Kiribati. This includes payment for minerals or any living or non-living resource of the land, sea or seabed.

Taxes are collected through withholding tax which is deemed to be the final tax on such income.