Article
3 min read
Author
Anja Simic
Published
August 12, 2021
Last Update
July 04, 2024
Table of Contents
What is a sole trader?
Registering as a sole trader in Samoa
Employing people in Samoa
Taxes in Samoa
Samoa is situated in the South Pacific Ocean and composed of 9 islands - two main ones and seven smaller isles. The country's full name is the Independent State of Samoa, and it has been independent since 1962. The country's administrative and commercial center is its capital city, Apia. About 2000,000 People live in Samoa, most of which (92%) are of native Samoan origin. The basic local language is English.
A sole trader is a person trading on their own.
The sole trader in Samoa:
The registration process is easy and requires little time spent at the counter. Unfortunately, all applications have to be done in person_,_ and almost all fees must be paid in cash or check. Here's
Every business must be registered with the Ministry of Commerce, Industry and Labour. A sole trader can use their own business name as the name of their business or register their business under a different name.
After an application has been reviewed, the sole trader will receive a company registration certificate.
All foreign citizens planning to do business in Samoa must register for an FIC with the Ministry of Commerce, Industry and Labour.
Sole traders must register their business with the Ministry of Revenue and obtain a business license after paying fees.
Fees are paid per business activity, so businesses with more activities will pay higher fees.
The license is valid for a year and needs to be renewed.
Filed with the MPMC Immigrations Office, this permit is required for every business activity, and it is recommended for the foreign sole trader to get one as soon as possible.
Documentation: Copy of passport, confirmation of residence (some document containing the address and a signed statement from the landlord)
Fees: WST 900 or 1,800 depending on whether you're applying off-island or in-country
Duration: processing takes up 10 working days
Sole traders can employ people to assist them with running their business. However, every business owner whose business is based in Samoa and who wants to hire foreign nationals needs to obtain a Foreign Employment Employee Permit.
Income Tax is paid on all income generated or earned in Samoa. The tax year in Samoa is from January 1st to December 31st, while the returns for any tax payments are due by March 31st the following year. Sole traders can file a sole trader tax return for any income that qualifies.
Every business with a turnover higher than $130,000 is required to apply for Value Added Goods and Services Tax, which is 15%.
Furthermore, Samoa has a double taxation agreement with New Zealand, which means that income taxed in each of the countries cannot be taxed again in the other one.
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Disclaimer: Be aware that this article is not a substitute for legal advice. Please always check official websites or seek legal advice before you take action.
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