Tl Corporate Income Tax

---
name: tl-corporate-income-tax
description: "Source-cited draft: corporate income tax for Timor-Leste (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/tl-corporate-income-tax"
  jurisdiction: "TL"
  tax_year: "2025"
  last_updated: "2026-07-13"
---

# Timor-Leste Corporate Income Tax

## Corporate income tax rates and base

Companies pay corporate income tax (CIT) at a flat rate, with special rates for the petroleum sector. Several payments are taxed by way of final withholding. Unverified draft figures.

- **General corporate income tax rate** — 10 percent (flat)  _([Taxes and Duties Act (Law No. 8/2008)](https://taxsummaries.pwc.com/timor-leste/corporate/taxes-on-corporate-income))_
- **CIT — oil & gas contractors** — 30 percent (flat)  _([Taxation of Bayu-Undan Contractors Act / Taxes and Duties Act (Law No. 8/2008)](https://taxsummaries.pwc.com/timor-leste/corporate/taxes-on-corporate-income))_
- **CIT — petroleum sub-contractors** — Generally 6 percent (flat)  _([Taxes and Duties Act (Law No. 8/2008)](https://taxsummaries.pwc.com/timor-leste/corporate/taxes-on-corporate-income))_
- **Tax base** — Net taxable income = gross income less allowable deductions; residents taxed on worldwide income, non-residents on Timor-Leste-source income  _([Taxes and Duties Act (Law No. 8/2008)](https://taxsummaries.pwc.com/timor-leste/corporate/income-determination))_
- **Withholding tax — dividends (resident to resident)** — 0 percent (final)  _([Taxes and Duties Act (Law No. 8/2008)](https://taxsummaries.pwc.com/timor-leste/corporate/withholding-taxes))_
- **Withholding tax — interest (resident to resident)** — 0 percent (non-final)  _([Taxes and Duties Act (Law No. 8/2008)](https://taxsummaries.pwc.com/timor-leste/corporate/withholding-taxes))_
- **Withholding tax — royalties (resident)** — 10 percent  _([Taxes and Duties Act (Law No. 8/2008)](https://taxsummaries.pwc.com/timor-leste/corporate/withholding-taxes))_
- **Withholding tax — rent of land/buildings (resident)** — 10 percent  _([Taxes and Duties Act (Law No. 8/2008)](https://taxsummaries.pwc.com/timor-leste/corporate/withholding-taxes))_
- **Withholding tax — construction/building activity** — 2 percent (final)  _([Taxes and Duties Act (Law No. 8/2008)](https://taxsummaries.pwc.com/timor-leste/corporate/withholding-taxes))_
- **Withholding tax — construction consulting** — 4 percent (final)  _([Taxes and Duties Act (Law No. 8/2008)](https://taxsummaries.pwc.com/timor-leste/corporate/withholding-taxes))_
- **Withholding tax — mining/mining support services** — 4.5 percent (final)  _([Taxes and Duties Act (Law No. 8/2008)](https://taxsummaries.pwc.com/timor-leste/corporate/withholding-taxes))_
- **Withholding tax — payments to non-residents** — 10 percent (on Timor-Leste-source income paid by a resident to a non-resident)  _([Taxes and Duties Act (Law No. 8/2008)](https://taxsummaries.pwc.com/timor-leste/corporate/withholding-taxes))_
- **Annual CIT return filing deadline** — Last day of the third month after the tax year-end (≈ 31 March for calendar-year filers)  _([Taxes and Duties Act (Law No. 8/2008)](https://taxsummaries.pwc.com/timor-leste/corporate/tax-administration))_
- **CIT payment deadline** — Final tax due by the annual return filing date  _([Taxes and Duties Act (Law No. 8/2008)](https://taxsummaries.pwc.com/timor-leste/corporate/tax-administration))_

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-07-13. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `tl-corporate-income-tax` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/tl-corporate-income-tax. If neither is available, confirm every figure against the official source pages cited above before relying on it.