Asia-Pacific · Tax guide
Timor-Leste
Timor-Leste uses the US dollar, taxes company profits at 10% and charges sales tax at 2.5%. Taxes are administered by the Timor-Leste Tax Authority.
At a glance
- Corporate income tax
- 10%
- Sales tax
- 2.5%
- Withholding on payments abroad
- 10%
Flat rate
On some goods and services
Before treaty relief
Corporate income tax
Companies pay 10%, with monthly instalments and the annual return due by the end of March. Petroleum operations in the Timor Sea follow their own rules.
Sales tax
Sales tax is 2.5% on imports and on some services such as hotels, restaurants and telecoms, filed monthly by the 15th.
Payments abroad
Payments to non-residents carry 10% withholding.
Key dates
- By the 15th of each monthSales tax and income tax instalments
- End of MarchAnnual income tax return
Figures and sources
3 figures- Corporate income tax rate10%Under professional review
- Sales tax rate2.5%Under professional review
- Withholding on payments to non-residents10%Under professional review
Indicative only. This assessment is a high-level overview of tax obligations in Timor-Leste based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a qualified tax adviser in Timor-Leste (a Timor-Leste tax adviser) before making compliance decisions.