Tonga capital gains tax: none on personal investments
Tonga has no capital gains tax on personal investments, so the tax on your gain is zero. Shares, funds, crypto and property alike, a sale outside a business carries no tax on the gain, whatever the holding period. Only a gain on a business asset is taxed, as business income on the resident individual scale, which tops out at 25%.
Verified as of 2026-09-30 against the Income Tax Act and the Ministry of Revenue and Customs rate table.
Current rules
Taxes on selling shares, crypto and property in Tonga
What you pay when you sell
| Asset | Tax on the gain |
|---|---|
| Shares (personal investment) | Nothing. Private capital gains are not part of gross income under section 11 of the Income Tax Act |
| Funds and ETFs | Nothing on the gain |
| Crypto | Nothing on the gain |
| Property (personal investment) | Nothing on the gain |
| Business asset, including shares or interests that derive 50% or more of their value from immovable property | Taxed as business income: the consideration less the cost, at 0% to T$12,000, 10% to T$30,000, 15% to T$50,000, 20% to T$70,000 and 25% above |
| Dividends from a resident company to a resident member | Exempt income under section 21 |
Questions
Tonga capital gains tax questions
Does Tonga have a capital gains tax?
No. Section 11 of the Income Tax Act makes gross income the total of business income, employment income, property income and any other income, and the gain on a private capital asset is none of these. Whether you sell shares after a week or land after twenty years, the gain itself is not taxed.
When is a gain taxed?
When the asset is a business asset. Section 12(1)(c) makes the gain on disposing of a business asset business income, worked out as the consideration less the cost. The Act counts shares in a company, or an interest in a partnership or trust, as a business asset when they derive 50% or more of their value, directly or indirectly, from immovable property.
What rate applies to a taxed gain?
The resident individual scale in force from 1 July 2021: nothing up to T$12,000, 10% from T$12,001 to T$30,000, 15% to T$50,000, 20% to T$70,000 and 25% above T$70,000. The fiscal year runs to 30 June.
Is crypto taxed in Tonga?
Not as a capital gain. Crypto held as a personal investment is a private capital asset like any other, and no provision of the Income Tax Act taxes the gain on one.
What does the Income Tax Act say about capital gains?
Tonga has no capital gains tax on an individual's sale of a personal investment. Section 11 of the Income Tax Act makes gross income the total of business income, employment income, property income and any other income, and a gain on a private capital asset is none of these. Source: https://www.revenue.gov.to/sites/default/files/inline-files/IncomeTaxAct2007.pdf
What is the business-asset rule?
Only a gain on a business asset is taxed, as business income under section 12(1)(c): the consideration received on disposal less the cost of the asset. A business asset is an asset used or held ready for use in a business, and section 12(2) adds shares in a company, or an interest in a partnership or trust, that derive 50% or more of their value, directly or indirectly, from immovable property. Source: https://tonga.tradeportal.org/media/IncomeTaxAct_2.pdf
Are dividends taxed?
A dividend paid by a resident company to a resident member is exempt income under section 21, so dividends on shares are not taxed either. Source: https://www.revenue.gov.to/sites/default/files/inline-files/IncomeTaxAct2007.pdf
What scale taxes a business gain?
Gains taxed as business income go through the resident individual scale: nil to T$12,000, 10% to T$30,000, 15% to T$50,000, 20% to T$70,000 and 25% above, from 1 July 2021. Source: https://www.revenue.gov.to/paye