DoubleTaxationTaxes on salary: Timor-Leste preliminary data
How much income tax and social contributions are paid on a salary in Timor-Leste, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | $70,326 ≈ €60,000 |
|---|---|
| Income tax | $6,433 ≈ €5,488 |
| Employee contributions | $2,813 ≈ €2,400 |
| Take-home pay | $61,080 ≈ €52,112 |
| Employer contributions and payroll taxes | $4,220 ≈ €3,600 |
| Employer's labour cost | $74,546 ≈ €63,600 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 $35,163 | €60,000 $70,326 | €120,000 $140,652 |
|---|---|---|---|
| Sole proprietor | $2,565 8.1 % | $5,729 9.1 % | $12,059 9.5 % |
| Company | $3,165 10.0 % | $6,329 10.0 % | $12,659 10.0 % |
Special tax regimes
There are no special regimes for individuals.
Tax residence
The tax residence check does not cover Timor-Leste yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 1.1721 USD (US dollar is the official currency of Timor-Leste, 2026-01-02) ↗
Sources
- Government of Timor-Leste (timor-leste.gov.tl) — Taxes and Duties Act, Law No. 8/2008, English text: Schedules V (wage income tax) and VI (income tax), s 29(f) dividends exempt
- Government of Timor-Leste (timor-leste.gov.tl) — Lei Tributária, Lei n.º 8/2008, Portuguese text
- Jornal da República, Série I, N.º 48 B (27 Nov 2025) — Lei n.º 8/2025, Orçamento Geral do Estado para 2026, art. 3(5): social security contribution 10% in 2026 (6% employer, 4% worker); art. 3(1): taxes per legislation in force
- IMF — Democratic Republic of Timor-Leste: 2025 Article IV Consultation, Staff Report
Data checked: 2026-11-08. An indicative calculation for a typical case. Not tax advice.