Southeast Asia
Timor-Leste tax rates 2026
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
Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.