Solomon Islands

Type of profile
Country
Overview

Recent reform steps

Since 2017, the Solomon Islands introduced six public rulings, three guides and six operational policies. Furthermore, eight technical training packages were prepared and presented to the staff.

Some amendments to the Tax Acts have been implemented in 2018, such as orders to increase types of income subject to withholding tax. A complete tax reform planned to be undertaken over next 3 years has commenced in early 2018. Three advisors have been funded by the Asian Development Bank and a new Tax Administration Bill has been drafted.

Progress achieved

The revenue of Solomon Islands increased by 9% in both 2017 and 2018. In part, this is due to the localisation of the Commissioner’s position, who concentrated more on results through:

  • Increased audits and decreasing debt;
  • The introduction of online filing and payment for all taxes by end of 2018;
  • Online objections and automated individual income tax assessments;
  • Improved customer understanding and compliance through increased filling of returns, issuing of public rulings, improved staff capacity, and including technical capacity of staff in providing customer service.

Building a strong organisation, the Solomon Islands have reviewed their structure while the Pacific Financial Technical Assistance Centre (PFTAC)/IMF have made recommendations. These will be implemented shortly.

Outlook: DRM priorities in 2019

Priority activities
  • Fully participate in tax reform consultations and implement the new Tax Administration Act
  • Introduce online filing and payment as well as online objections
  • Improve registration and taxpayer services
  • Establish a legal enforcement unit and develop an ongoing legislative change programme to implement improvements
Expected outcomes
  • Simplify tax acts and making them easily understandable, improving compliance

  • Make it easy for taxpayer to file and pay tax, whereby objections are handled online and internal business processes are streamlined
  • Embed ID registration policy into operations to manage registration
  • Tax lawyer is appointed to provide legal advice to Inland Revenue Division staff and policy developments
  • Legislative programme is agreed upon and implementation begins
  • Work to be checked more professionally for quality and made sure that it is transparent and accountable
  • Develop a sustainable framework
  • Get management sign-off and establish business ownership

DRM Project Data as Recipient

all
2015
2016
2017
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
New Zealand
year all
3 projects
amount 0.00 USD
disbursement 5 674 496.01 USD
Solomon Islands Inland Revenue Division
year 2015
1 project
amount 0.00 USD
disbursement 2 175 710.00 USD
Solomon Islands Inland Revenue Division
year 2016
1 project
amount 0.00 USD
disbursement 2 172 226.40 USD
Solomon Islands Inland Revenue Division
year 2017
1 project
amount 0.00 USD
disbursement 1 326 559.61 USD
Australia
year all
4 projects
amount 3 825 828.63 USD
disbursement 3 825 828.66 USD
Solomon Islands Growth Program
year 2016
1 project
amount 2 462 409.87 USD
disbursement 2 462 409.90 USD
Economic and Public Sector Governance Program
year 2017
1 project
amount 386 665.65 USD
disbursement 386 665.65 USD
Solomon Islands Growth Program
year 2017
1 project
amount 382 793.21 USD
disbursement 382 793.21 USD
Solomon Islands Governance Program 2017-2021
year 2017
1 project
amount 593 959.90 USD
disbursement 593 959.90 USD
Totals
year all
7 projects
amount 3 825 828.63 USD
disbursement 9 500 324.67 USD
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
New Zealand
year 2015
1 project
amount 0.00 USD
disbursement 2 175 710.00 USD
Solomon Islands Inland Revenue Division
year 2015
1 project
amount 0.00 USD
disbursement 2 175 710.00 USD
Totals
year 2015
1 project
amount 0.00 USD
disbursement 2 175 710.00 USD
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
Australia
year 2016
1 project
amount 2 462 409.87 USD
disbursement 2 462 409.90 USD
Solomon Islands Growth Program
year 2016
1 project
amount 2 462 409.87 USD
disbursement 2 462 409.90 USD
New Zealand
year 2016
1 project
amount 0.00 USD
disbursement 2 172 226.40 USD
Solomon Islands Inland Revenue Division
year 2016
1 project
amount 0.00 USD
disbursement 2 172 226.40 USD
Totals
year 2016
2 projects
amount 2 462 409.87 USD
disbursement 4 634 636.30 USD
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
Australia
year 2017
3 projects
amount 1 363 418.76 USD
disbursement 1 363 418.76 USD
Economic and Public Sector Governance Program
year 2017
1 project
amount 386 665.65 USD
disbursement 386 665.65 USD
Solomon Islands Growth Program
year 2017
1 project
amount 382 793.21 USD
disbursement 382 793.21 USD
Solomon Islands Governance Program 2017-2021
year 2017
1 project
amount 593 959.90 USD
disbursement 593 959.90 USD
New Zealand
year 2017
1 project
amount 0.00 USD
disbursement 1 326 559.61 USD
Solomon Islands Inland Revenue Division
year 2017
1 project
amount 0.00 USD
disbursement 1 326 559.61 USD
Totals
year 2017
4 projects
amount 1 363 418.76 USD
disbursement 2 689 978.37 USD

Resources

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