Timor-Leste Tax Calculator (2026)

Timor-Leste Income Tax Brackets (2025)

What is the income tax rate in Timor-Leste for employees?

Timor-Leste uses a Wage Income Tax (WIT) system with a simple two-bracket structure. Income up to $500 USD is tax-exempt, and income above $500 is taxed at a flat rate of 10%. This makes it a relatively straightforward tax system for employees earning wages in the country.

Do I need to pay social security contributions if I work in Timor-Leste?

Social security contributions for employees in Timor-Leste are currently limited, and there is no material mandatory employee scheme in effect. This means most employees do not face significant mandatory social security deductions on top of their income tax.

Are there any deductions or tax credits available to reduce my tax bill in Timor-Leste?

No, Timor-Leste does not allow personal deductions, allowances, or tax credits for individual employees. Your tax is calculated directly on your wage income based on the WIT brackets, with no adjustments for dependents, expenses, or other personal circumstances.

What types of income are taxed differently in Timor-Leste?

Employment income is subject to Wage Income Tax (WIT), while other income sources like investments or self-employment income are subject to standard income tax at potentially different rates. For a typical employee receiving wages, WIT is the primary tax that applies.

Are there any other taxes I should expect as an employee in Timor-Leste?

As an individual employee in Timor-Leste, you will not face consumption taxes, wealth taxes, inheritance taxes, or property taxes that affect your employment income. Your main tax obligation is the Wage Income Tax on wages earned in the country.

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