Information about East Timor Minimum wage and taxes.
Information about East Timor's minimum wage and tax policies is as follows: The minimum wage in East Timor is set at $202 per month as of 2021. This wage represents the lowest salary of employees. Tax policies in East Timor are quite simple. The nationwide income tax rate is a flat 10%. This rate is applied on personal income and is not subject to any tax bracket. Additionally, an income tax is also imposed on companies in Timor-Leste. A 30% tax deduction is made on the profits of companies. There are also social security contributions in Timor-Leste. 8% of the gross salary of the employees is paid to the social security fund by the employer. In addition, indirect taxes such as VAT (Value Added Tax) are also applied in East Timor. The VAT rate is usually 2%, but for some products it can also be applied at 10%. The information stated above reflects tax and minimum wage policies in effect as of 2021. However, tax rates and minimum wage may change over time, so it is important to confirm up-to-date information with local authorities.
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