This page contains the tax table information used for the calculation of tax and payroll deductions in Solomon Islands in 2024. These tax tables are used for the tax and payroll calculators published on iCalculator™ SB, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Solomon Islands or would like to add to or suggest amendments to the information herein then please contact us.
The Income tax rates and personal allowances in Solomon Islands are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Solomon Islands Tax Calculator 2024.
Solomon Islands provides an annual "Standard Deduction" that is deducted from your total income to produce your taxable income in Solomon Islands in 2024:
| Residence Status | Standard Deduction |
|---|---|
| Resident | $ 30,080.00 |
| Non-resident | $ 30,080.00 |
| Tax Rate | Taxable Income Threshold | ||
|---|---|---|---|
| 11% | Income from $ 0.000.00 | to | $ 15,000.00 |
| 23% | Income from $ 15,000.01 | to | $ 30,000.00 |
| 35% | Income from $ 30,000.01 | to | $ 60,000.00 |
| 40% | Income from $ 60,000.01 | and above | |
| Tax Rate | Taxable Income Threshold | ||
|---|---|---|---|
| 11% | Income from $ 0.000.00 | to | $ 15,000.00 |
| 23% | Income from $ 15,000.01 | to | $ 30,000.00 |
| 35% | Income from $ 30,000.01 | to | $ 60,000.00 |
| 40% | Income from $ 60,000.01 | and above | |
In the Solomon Islands, contributions made by employees to the Solomon Islands National Provident Fund (SINPF) are deductible for tax purposes. This means that when calculating taxable income, employees can subtract their contributions to the SINPF from their gross income, thereby potentially lowering the amount of income subject to personal income tax. This provision encourages saving for retirement while providing immediate tax benefits to employees.
In the Solomon Islands, the social security system is evolving, with various types of deductions from salaries and wages aimed at providing benefits for employees and employers. While the country does not have a comprehensive social security system like those found in more developed countries, there are specific contributions and deductions related to employment. This overview outlines the primary types of payroll deductions and their intended purposes.
| Category | Employee | Employer | Total |
|---|---|---|---|
| Solomon Island National Provident Fund (SINPF) | 5% | 7.5% | 12.5% |
| Category | Employee | Employer | ||
|---|---|---|---|---|
| Min. | Max. | Min. | Max. | |
| Solomon Island National Provident Fund (SINPF) | n/a | n/a | n/a | n/a |
The Solomon Islands National Provident Fund (SINPF) is a key component of the country's social security framework. Both employees and employers contribute to the SINPF, which serves as a retirement savings scheme for workers. The fund provides financial security for members upon retirement, disability, or under specific circumstances that allow for early withdrawal.
While there is no mandatory health insurance scheme funded through payroll deductions in the Solomon Islands, employers often provide private health insurance as a benefit to their employees. These contributions help cover medical and hospital expenses, offering financial protection against health-related costs.
Employment insurance, covering scenarios such as job loss or redundancy, is not currently a standardized feature of the Solomon Islands' social security system. However, some employers may offer severance pay or redundancy packages to their employees as part of their employment terms and conditions.
The Solomon Islands has legislation in place to protect workers and compensate them for injuries or illnesses sustained due to their employment. Employers are responsible for contributing to work injury compensation, which covers medical expenses and provides support in the event of work-related injuries or diseases.
Payroll tax deductions are also a significant part of the employment landscape in the Solomon Islands. These deductions include personal income tax, which is levied on employees' salaries and wages according to progressive tax rates. The collected taxes are used to fund public services and infrastructure development, contributing to the overall welfare of the Solomon Islands' populace.
The social security and payroll deduction system in the Solomon Islands plays a crucial role in providing financial protection and support to workers. While the system may not be as comprehensive as those in more developed countries, it reflects the government's efforts to balance economic growth with social welfare needs. As the country continues to develop, it is likely that the social security system will expand and evolve to offer more extensive benefits to its citizens.
VAT rates for Solomon Islands are reviewed annually, you can use the VAT Calculator to calculate VAT due in Solomon Islands or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.
| VAT Rate | VAT Description |
|---|---|
| 0% | Zero Rated |
| 15% | Standard Rate |
The following tax tables are supported by iCalculator™ SB as part of the suite of free tax tools we provide for Solomon Islands.
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