Samoa Investment Income Guide: Dividends 15%, Interest 15%, Royalties 15% 2026
Samoa applies a uniform 15% withholding tax on investment income paid to non-residents: dividends, interest, and royalties. Double Taxation Treaties with Australia and New Zealand may reduce these rates. Here is how investment income is taxed in 2026.
The taxation of investment income in Samoa is governed by the Income Tax Act 2012. A flat 15% withholding tax applies to dividends, interest, and royalties paid to non-residents. The Ministry of Revenue (MOR) administers withholding tax obligations — the payer is responsible for withholding and remitting the tax. Cross-border tax guide →
Real-world example: A Samoan company pays WST 50,000 in dividends to a non-resident shareholder. WHT at 15% = WST 7,500, net payment = WST 42,500. If the shareholder is resident in a treaty country (e.g., Australia with a reduced rate), the WHT may be lower. Interest of WST 20,000 paid to a non-resident lender: WHT 15% = WST 3,000. Royalties of WST 30,000 paid to a non-resident: WHT 15% = WST 4,500. Corporate tax overview →
Withholding Tax Rates on Investment Income
- Dividends — non-residents: 15% WHT — may be reduced under applicable DTT
- Interest — non-residents: 15% WHT — may be reduced under applicable DTT
- Royalties — non-residents: 15% WHT — may be reduced under applicable DTT
The uniform 15% rate across all three categories simplifies compliance. The rates are competitive with other Pacific island nations.
Double Taxation Treaty Network
Samoa has Double Taxation Treaties with Australia and New Zealand. Treaties generally reduce withholding tax rates:
- Dividends: Treaty rates may be lower than the domestic 15% rate
- Interest: Treaty rates may be lower than the domestic 15% rate
- Royalties: Treaty rates may be lower than the domestic 15% rate
Treaty benefits require the recipient to be the beneficial owner and provide a Certificate of Tax Residency from the treaty jurisdiction.
Taxation of Other Investment Income
- Bank interest: Interest on savings accounts and deposits earned by residents is generally not subject to withholding tax
- Government bonds: Interest on Samoan government securities may have specific tax treatment
- Capital gains on investments: No separate CGT — generally not taxable for long-term holders
Compliance and Reporting
Samoan companies paying dividends, interest, or royalties to non-residents must withhold the appropriate tax and remit it to the MOR within the prescribed timeframe (typically by the 15th of the following month). The payer must also file an annual withholding tax return. Recipients seeking treaty relief must provide a Certificate of Tax Residency and a declaration of beneficial ownership. Failure to withhold correctly results in the payer being liable for the unpaid tax plus penalties.
What is the procedure for claiming treaty relief?
The non-resident recipient must submit a Treaty Relief Application to the Samoan payer, along with a Certificate of Tax Residency from their home country. The payer then applies the reduced rate at source. If tax has been over-withheld, the non-resident can file a refund claim with the MOR.