Tl Income Tax

---
name: tl-income-tax
description: "Source-cited draft: personal 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-income-tax"
  jurisdiction: "TL"
  tax_year: "2025"
  last_updated: "2026-07-13"
---

# Timor-Leste Personal Income Tax

## Personal income tax rates and thresholds

Timor-Leste distinguishes Wage Income Tax (WIT, withheld by employers) from income tax on non-wage income. Rates are low and flat above a tax-free threshold. These are unverified draft figures.

- **Wage Income Tax — resident employees** — 0% on monthly wages up to USD 500; 10% on the portion above USD 500 percent ((approx — confirm monthly threshold))  _(Taxes and Duties Act (Law No. 8/2008) — https://attl.gov.tl/wage-income-tax/)_
- **Wage Income Tax — non-resident employees** — 10% flat on all Timor-Leste-source wages, with no tax-free threshold percent  _(Taxes and Duties Act (Law No. 8/2008) — https://taxsummaries.pwc.com/timor-leste/individual/taxes-on-personal-income)_
- **Income tax on non-wage income — band 1** — 0% on annual taxable non-wage income up to USD 6,000 percent  _(Taxes and Duties Act (Law No. 8/2008) — https://taxsummaries.pwc.com/timor-leste/individual/taxes-on-personal-income)_
- **Income tax on non-wage income — band 2** — 10% on annual taxable non-wage income over USD 6,000 percent  _(Taxes and Duties Act (Law No. 8/2008) — https://taxsummaries.pwc.com/timor-leste/individual/taxes-on-personal-income)_
- **Income tax — non-resident individuals** — 10% flat on all Timor-Leste-source taxable income, with no tax-free threshold percent  _(Taxes and Duties Act (Law No. 8/2008) — https://taxsummaries.pwc.com/timor-leste/individual/taxes-on-personal-income)_
- **Annual tax-free threshold (non-wage income, residents)** — USD 6,000 per year USD  _(Taxes and Duties Act (Law No. 8/2008) — https://taxsummaries.pwc.com/timor-leste/individual/taxes-on-personal-income)_
- **Individual residence test** — An individual is resident if present in Timor-Leste for more than 182 days in the tax year, or has a permanent home / habitual abode in Timor-Leste ((approx — confirm day count))  _(Taxes and Duties Act (Law No. 8/2008) — https://taxsummaries.pwc.com/timor-leste/individual/residence)_
- **Treatment of WIT on resident wages** — Wage Income Tax withheld by the employer is generally a final tax for employees with a single employer  _(Taxes and Duties Act (Law No. 8/2008) — https://attl.gov.tl/wage-income-tax/)_
- **WIT remittance deadline** — Employer must remit withheld WIT by the 15th day of the month following the deduction  _(Taxes and Duties Act (Law No. 8/2008) — https://attl.gov.tl/wage-income-tax/)_
- **Annual income tax return deadline (non-wage income)** — By the last day of the third month following year-end (≈ 31 March) ((approx — confirm individual deadline))  _(Taxes and Duties Act (Law No. 8/2008) — https://taxsummaries.pwc.com/timor-leste/corporate/tax-administration)_
- **Deductions for non-wage business income** — Ordinary and necessary expenses incurred in deriving taxable income are generally deductible; specific limits and capital allowance rules apply  _(Taxes and Duties Act (Law No. 8/2008) — https://taxsummaries.pwc.com/timor-leste/individual/deductions)_

## 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-income-tax` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/tl-income-tax. If neither is available, confirm every figure against the official source pages cited above before relying on it.