Investing in Vanuatu
Vanuatu encourages foreign investment, and to do so the Government enacted a Foreign Investment Act 1998 to create a favourable environment for private sector investment.
For example we understand that investments in developments that are likely to create local employment are sometimes provided with an import duty discount or exemption.
Vanuatu has no income or capital gains taxes. Tax revenue extends from:
- (a) Import duties- which can be considerable and result in imported goods being very expensive.
- (b) 12.5 % Value Added Tax (VAT) on goods and services. This is equivalent of the GST collection system in Australia and New Zealand.
Economic development is hindered by dependence on relatively few commodity exports, vulnerability to natural disasters and long distances from main markets and islands.