Samoa is an island nation in the center of Polynesia. Although it is classified as a lower-middle-income country, its economy is supported by tourism, agriculture, and remittances from Samoans living abroad.  Three main government bodies oversee Samoa’s tax system: 

  • The Ministry of Customs and Revenue (MCR) manages and collects all national taxes, including the personal income tax system. 
  • The Samoa National Provident Fund (SNPF) runs the country’s compulsory retirement savings program, a core part of worker benefits.
  • The Accident Compensation Corporation (ACC) oversees the no-fault accident insurance scheme, funded by mandatory wage levies.

Employers no longer have to wonder how to hire in Samoa because of its relative obscurity.  We’ve got it covered. Note that this guide applies only to the Independent State of Samoa. It does not cover American Samoa, a U.S. territory, which follows a separate tax system based on U.S. law.  So, let’s get into it.

What is Payroll Tax in Samoa?

The main payroll levies are contributions to the Samoa National Provident Fund and the Accident Compensation Corporation. 

The SNPF was created under the SNPF Act of 1972 as a compulsory retirement savings program. It covers all employees working for registered organizations in Samoa and is one of the most important parts of the payroll system.

The ACC, established under the Accident Compensation Act 1989, provides no-fault insurance coverage for personal injuries from accidents. Workers receive support immediately without having to go through long legal processes. The ACC pays for medical expenses, rehabilitation, and up to 70% of lost earnings. Coverage applies 24 hours a day, both at work and out of work.

Employer and Employee Responsibilities

Employees must contribute 10% of their gross income into the SNPF, which is deducted directly from their salary each pay period. 

Employers must then match that amount by contributing another 10% of the same gross income, paid on top of the employee’s wages. 

In addition, both employee and employer pay a 1% levy on wages to ACC. Together, the NPF and ACC levies total 22% of income (10%+10%+1%+1%). There is no minimum wage floor for these payroll contributions. They apply to all earned wages, with no exemption or earnings cap.

Managing these contributions accurately each month can be time-consuming, especially for foreign companies new to Samoa’s system. Remote People’s payroll outsourcing services handle all calculations, withholdings, and submissions for SNPF, ACC, and PAYE so that employers stay compliant without the administrative stress. 

Employers can also use our free Global Payroll Calculator to estimate the true cost of employment in Samoa, including all mandatory employer contributions. This makes it easier to budget, compare costs across countries, and plan hiring accurately and confidently.

Personal Income Tax in Samoa

All residents and companies must register with MCR for income tax. Individuals in Samoa for 183 days or more per year are treated as tax residents and taxed on worldwide income. Non-residents pay tax only on income sourced in Samoa. The current PAYE brackets in Samoan Tala (SAT) are:

Annual Taxable Income (SAT) Tax Rate
Up to 15,000 0%
15,001 – 25,000 20%
More than 25,000 27%

Employers withhold PAYE each pay period based on these brackets. A fortnightly salary above SAT576 starts to incur PAYE at 20% on that excess (since SAT576 fortnightly equals SAT15,000 annually). Employees whose income stays below the threshold have no PAYE, but employers still register them and file returns.

These rates apply to employee wages and to business income earned by individuals. If an employee earns only wages or salary from a single employer, the PAYE withheld from their paycheck is considered their final tax liability. Foreign workers pay tax at the same rates on their Samoa-sourced pay. There are no special flat rates for non-residents beyond the usual brackets.

Income Tax Exemptions

Under Schedule 2 of the Income Tax Act 2012, certain non-citizen employees are exempt from paying income tax. These include staff of approved international organizations, trustee companies, or international banks, provided they are in Samoa solely for that work.

Business Tax in Samoa

Companies planning to set up in Samoa need to look beyond payroll and understand the wider tax system. The government’s decision not to introduce new taxes in the 2024/2025 budget strengthens Samoa’s economic and regulatory stability.

Corporate Income Tax (CIT)

Incorporated companies pay a flat CIT rate of 27% on their net taxable profits. The rules are different for unincorporated businesses. Sole traders and partnerships do not pay CIT. Instead, they pay personal income tax on profits, using the same progressive tax brackets that apply to individuals.

Value Added Goods and Services Tax (VAGST)

VAGST works like a value-added tax (VAT) in other countries. The standard rate is 15%, charged on the final price of most goods and services sold in Samoa. Registered businesses collect this tax on behalf of the government.

Any business with an expected annual turnover of SAT 130,000 or more must register for VAGST with the Ministry of Customs and Revenue. Once registered, businesses must include VAGST in their invoices, collect it from customers, and file returns regularly.

Tax Filing Compliance in Samoa

Employers must remit PAYE to MCR by the 7th day of the following month and pay SNPF/ACC contributions by the 14th day of the following month. They must also file a monthly payroll return (Form P4) even if no PAYE is due, and an annual reconciliation of all wages and tax with MCR (generally due by September 30 after year-end). 

Most businesses operate on a calendar tax year, with annual income tax returns (for companies or sole proprietors) due by March 31 of the next year. If a business or individual expects to owe more than SAT1,000 in tax, they must make provisional tax payments (quarterly installments) throughout the year.

Employees must ensure their pay stubs reflect the correct deductions and may need to file an individual tax return if they have other income or pay tax at year-end.

In general, employee duties include:

  • Confirming Deductions: Employees should verify that each paycheck shows the correct NPF and ACC contributions and PAYE withholding.
  • Paying Annual Tax (if required): If an employee’s total income (after contributions) triggers additional tax beyond PAYE, they may need to file an individual tax return or pay provisional tax.

Most salaried employees with only PAYE income have their tax settled through payroll and do not file separately, unless they have significant other income.

Businesses that set up a local establishment in Samoa still face the challenge of recruiting staff and managing payroll. Working with an international recruitment agency makes it easier to find and screen qualified local talent, helping you hire the best professionals in the Samoan market. 

Once your team is in place, a Professional Employer Organization (PEO) service can take over the heavy administrative work. A PEO handles payroll, tax filings, and mandatory contributions on your behalf, keeping you fully compliant while you remain in direct control of your employees.

Employer of Record (EOR) in Samoa

Remote People’s Samoa EOR service helps international employers navigate the above without setting up a Samoan entity. With an EOR, Remote People becomes the legal employer of your Samoa staff, handling payroll, tax compliance, and local benefits on your behalf. 

We provide full payroll processing, including payslips, tax certificates, and year-end reporting, so you do not have to worry about local paperwork. In addition to payroll, our service includes onboarding and HR compliance. We prepare employment contracts in line with Samoan labor law, enroll workers in the required insurance and pension plans, and manage any statutory benefits (holiday pay or leave entitlements). 

The value of using an Employer of Record service in Samoa is that it gives you unmatched speed, lets you onboard employees and start operations within days instead of spending months setting up a local company. It also saves costs by removing the need for expensive entity registration, maintenance, and in-house payroll staff. Most importantly, it offers peace of mind. With just $199 per employee per month, you can focus on growing your business while our experts handle all local HR and payroll requirements.

Start your expansion into Samoa with a smooth, risk-free path. Contact Remote People today.