The Fiji Revenue and Customs Service (FRCS) has announced a new requirement for individuals and businesses to declare their M-PAiSA balances as part of their annual financial statements and asset disclosures. This decision was made during discussions with the Standing Committee on Foreign Affairs and Defence, where committee member Rinesh Sharma raised the question of whether businesses receiving payments through M-PAiSA would need to report these earnings.
Momina Beg, the FRCS Director of Taxation, responded by affirming that all financial assets, including holdings in mobile money, are required to be reported in taxpayers’ financial disclosures. She highlighted that all assets need to be declared as of a specific date, with December 31st being the standard cutoff for businesses. As part of this initiative, the FRCS is working on creating a new declaration form that will provide detailed guidelines for taxpayers, clarifying what must be disclosed.
This regulatory change is part of the Fijian government’s ongoing efforts to enhance financial transparency and accountability, especially concerning digital assets. Recognizing M-PAiSA as a taxable asset marks a significant advancement toward the formal integration of mobile money into economic reporting. This initiative is in line with previous measures aimed at improving compliance and tackling tax evasion, which include requiring the use of Tax Identification Numbers (TINs) for mobile wallet users.
Fiji’s government is committed to combating the shadow economy by ensuring that all financial transactions are adequately recorded and taxed. The inclusion of electronic financial services like M-PAiSA into the formal economy reflects a strong dedication to creating a fair and responsible financial environment.
As these changes take shape, they signify a move towards a more structured financial system, emphasizing the need for compliance in fostering national development. This proactive stance not only aims to close existing regulatory gaps but also encourages a culture of accountability and transparency among both businesses and individuals in Fiji. Ultimately, the government seeks to ensure that all citizens contribute equitably to the nation’s growth and stability, promoting sustainable economic progress for the country.