American Samoa seeks changes to income tax law and to close a biz license loophole

Gov. Lolo Matalasi Moliga has proposed legislation, which will update two components of local income tax laws, and to close, what the governor says is a “loophole in our business licensing procedures.”

In his cover letter to the Fono leaders, that accompanied the proposed law, the governor explained that since freezing the income tax in American Samoa as of Dec. 31, 2000, there have been several changes in the federal Internal Revenue Code (IRC) that have not been implemented in the territory.

“We believe one of these changes to the amounts that can be deducted from gross income for contributions to retirement savings plans — such as individual IRA plan — to be worthwhile for local application,” he explained.

According to the governor, current local deduction per individual taxpayer is $2,000 while the deduction level under the IRC has increased to $5,500 and to $6,500 for taxpayers over the age of 50.

Read more: http://www.samoanews.com/content/en/admin-seeks-changes-income-tax-law-and-close-biz-license-loophole