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[Media Release - MFEM] Tax Updates 2021



MINISTRY OF FINANCE AND ECONOMIC MANAGEMENT

GOVERNMENT OF THECOOK ISLANDS


Revenue Management – Inland Revenue



The Revenue Management wish to provide some information about recent changes, the taxability of Economic Response Package (ERP) payments and highlight some important dates.


Increase in the tax free threshold


The standard deduction is commonly referred to as the ‘tax free threshold’. It is the amount of income that is included in your income tax return but is not taxed. In 2020 and 2021 the standard deduction for individual taxpayers increased.


Tax year ended 31 December 2019


The standard deduction was $11,000. This means the first $11,000 of income included in your tax return will not be taxed.


Tax year ended 31 December 2020


For the tax year ended 31 December 2020 the standard deduction increased from $11,000 to $12,800. This increase provides individuals with an additional $1,800 tax free income. In total $12,800 of your income will not be taxed. Tax year ended 31 December 2021 For the tax year ending 31 December 2021 the standard deduction increases from $12,800 to $14,600. This increase provides an additional $1,800 tax free income for individuals. In total $14, 600 of your income will not be taxed.


How should payments received under the ERP be treated for tax purposes?

Need more information about the ERP?


Additional information regarding all of the ERP measures can be located on the MFEM website at Economic Planning - Cook Islands - Ministry of Finance and Economic Management (mfem.gov.ck). All documents are accessed via the ‘Economic Planning Menu’ which is located at the top right of the page.


Online services

Our eTax online system provides quick access to account balances, allows you to file tax returns online and provides instant notices of assessments. You can register for free to use our eTax online system at tax.cookislands.gov.ck.


Need further assistance?


We have a dedicated outreach and education team that can help you file your tax returns. If you have queries they can be contacted at tax.info@cookislands.gov.ck.


[End]

11 March 2021