6 Jul 2011

New tax to come into effect in Cook Islands

6:58 pm on 6 July 2011

A new tax is set to come into force in the Cook Islands in September.

In an effort to generate an additional one million US dollars annually the Cook Islands Government plans to implement a withholding tax, taking 15 percent of all interest earned on bank accounts within the country.

It is a new tax for the Cook Islands and is included in the country's national budget for the next financial year.

By the end of next June the government expects to have garnered nearly a million dollars from the tax.