Tonga's Parliament has passed a series of tax reforms.
The Finance Minister Siosuia 'Utoikamanu says the Income Tax Act simplifies and rationalises tax rates, deductions and withholding tax.
It also modernises income tax applying to international transactions and provides measures to prevent tax avoidance, which has been a major problem in Tonga.
The minister says the changes are designed to give taxpayers greater equity and fairness, increased certainty and simplicity.
He says the passing of the new Act is a major achievement for Tonga and demonstrates the Government 's commitment and determination to building a fairer and better tax system for its citizens and businesses.