Tuvalu

{"ftc_utility":"medium","fbar_trigger_notes":"US expats working in Tuvalu may hold accounts at the National Bank of Tuvalu. Any such account with an aggregate balance exceeding USD 10,000 at any point in the calendar year triggers FBAR (FinCEN 114) filing. The banking infrastructure is very limited; many expats may hold funds in offshore accounts instead, which independently triggers FBAR.","ftc_utility_reason":"Tuvalu taxes resident earned income at rates up to 30%, which is below the US top marginal rate. Foreign Tax Credits can shelter US tax on income taxed by Tuvalu, but because the Tuvalu rate is lower than the US rate, a residual US liability may remain on higher-income earners. FEIE is generally more advantageous for most expat income levels. No treaty exists to coordinate credits.","presence_day_count_notes":"Tuvalu does not impose a formal visa or entry-permit duration cap that would disrupt the 330-day count for most stays, but the extreme remoteness and limited air links to Funafuti make sustained physical presence challenging in practice. Entry is typically via a visitor permit extendable up to 12 months; longer stays require a residence permit. Permit gaps could interrupt qualifying days.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":8400,"local_tax_rate_on_earned_income":0.3,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Foreign pension income received by a Tuvalu tax resident is assessable income subject to progressive rates up to 30%. Local civil-service and provident-fund pensions are similarly assessable. No exemptions for foreign government pensions exist absent a treaty.","tax_rate":0.3,"locally_taxed":true},"social_security":{"notes":"No US-Tuvalu totalization or income tax treaty. US Social Security benefits received by a Tuvalu resident are treated as foreign pension income and are assessable under Tuvalu tax law. The US taxes up to 85% of Social Security benefits at the federal level regardless of residence; no treaty relief exists to prevent double taxation.","locally_taxed":true,"treaty_protection":false},"roth_distributions":{"notes":"Qualified Roth distributions represent a return of after-tax contributions and post-tax growth. In the absence of specific Tuvalu guidance, qualified distributions would likely not be treated as assessable income since no ongoing income accrual or pension payment structure applies. This position carries uncertainty given the absence of treaty or local guidance.","locally_taxed":false},"us_401k_ira_distributions":{"notes":"No US-Tuvalu tax treaty exists. Distributions from US 401(k) or IRA accounts received by a Tuvalu tax resident are treated as foreign-source income and are assessable under the Tuvalu Income Tax Act at ordinary rates up to 30%. US citizens must also report and may owe US tax; no treaty credits are available to offset double taxation.","tax_rate":0.3,"locally_taxed":true,"treaty_protection":false}}

{"rate":0.3,"notes":"Tuvalu does not have a separate capital gains tax. Gains of a capital nature are generally not taxed, but where gains are deemed trading income they fall under ordinary income tax at the top rate of 30%.","details":{"tax_type":"Capital Gains Tax","country_name":"Tuvalu","country_iso_code":"TUV","source_references":["Tuvalu Income Tax Act","Pacific Islands Tax Administrators Association (PITAA) country notes"],"last_verified_date":"2026-06-03","general_description":"No standalone CGT exists in Tuvalu. Capital gains are not taxed unless the underlying activity is treated as a trading transaction, in which case ordinary income tax rates apply. The top personal income tax rate is 30%.","corporate_capital_gains":{"rate":0.3,"tax_treatment":"No separate corporate CGT. Trading gains taxed as corporate income at the standard 30% rate; purely capital gains generally not taxed."},"individual_capital_gains":{"rate":0.3,"tax_treatment":"No separate individual CGT. Capital gains on passive investments are generally not taxable. Gains deemed to be trading income are taxed at the individual income tax rate, which reaches a top marginal rate of 30%."}}}

{"notes":"Tuvalu imposes a withholding tax on dividends paid to non-residents. Dividends paid to resident individuals are generally included in assessable income and taxed at ordinary rates up to 30%. The standard non-resident withholding rate is 30%. No reduced treaty rates apply as Tuvalu has not concluded double tax treaties with major jurisdictions.","rates":[{"rate":0.3,"type":"withholding","notes":"Non-resident withholding tax on dividends; no treaty network to reduce this rate."},{"rate":0.3,"type":"progressive","notes":"Resident individual dividends included in assessable income and taxed at progressive rates up to 30%."}]}