4. Competitive operational costs

Tonga offers one of the most cost-competitive environments in the Pacific. With lower wages, affordable electricity and mobile data prices, and a straightforward tax regime, the country provides a significant advantage for businesses looking to operate efficiently and sustainably in the region.

Competitive salaries in the Pacific region

• 3^rd most competitive salary among the Pacific States with a monthly average minimum wage³ of US$195.
• Friendly and business-oriented labor regime, fostering the creation of new employment.

^{Note: Values only for reference. These may change according to exchange rate fluctuations. Salaries do not include mandatory social benefits.  -  ¹ Average monthly salary corresponds to 195 hrs./month avg. (9 hours per day x 5 days per week x 4.33 weeks per month – exceptions may apply).   -   ² Minimum wages are set according to province, industry and skill level. In this case an average is taken.  -  ³ There is no statutory minimum wage. Lowest average salary is used in stead.} 

^{⁴ Labor regime in Tonga: Working hours: No legal minimum but standard is 8hrs per day - 40hrs per week not exceeding 6 days. Overtime: 125% rate (without exceeding 48hrs per week). Annual leave: 12 paid days (plus 10 more for sickness). Health insurance: No obligation. For more info review Employment Contracts Act 2006 - Employment Relations Act 2002.  -  Source: www.wageindicator.org - www.salaryexplorer.com - www.rivermate.com - www.globalexpansion.com}

Competitive electricity prices in the Pacific

• Tonga offers competitive electricity prices at an average of US$0.35 per kWh, lower than regional average* of US$ 0.38 per kWh

^{¹ Pacific (Oceania including Australia and New Zealand) is the most expensive continent in the world, averaging US$ 0.30 kWh. In this case The Pacific region average (US$0.35 kWh) is estimated based on the Pacific Island States, excluding developed economies and overseas territories.   -  Source: www.cable.co.uk - IRENA (International Renewable Energy Agency) – World Bank Database}

Competitive mobile data in the Pacific

• 3^rd most competitive mobile data prices among the Pacific States averaging US$1.19 per 1GB, lower than the regional avg. (US$ 3.72) and New Zealand (US$5.89).
• Most competitive broadband prices among the Pacific States averaging US$17.6, lower than the regional avg. of US$105, New Zealand (US$48.6) and Australia (US$52.2).
• Excellent connectivity: 4^th best connected country among Pacific Islands, after Fiji, Micronesia and Samoa, with 2 submarine cables providing high-speed and reliable internet.

^{¹ Pacific (Oceania including Australia and New Zealand) is one of the most expensive continents in the world per 1GB per 30 days.  -  Source: www.cable.co.uk - www.submarinecablemap.com}

Competitive taxes for confident investment

• Competitive corporate tax rate of 25%, ranking among the most competitive Pacific economies, lower than Australia (30%), New Zealand (27%), and many regional peers. 
• Standard Sales Tax Rate of 15%, aligns with regional norms, offering consistency for business planning and cross-border transactions.

^{Note: Rates only for reference. They may vary according to company’s  sector, revenue, size, new legislation, etc.  -  Tonga Withholding tax: Dividends 15%, interest 15% and royalties 15%.  -  * Includes Australia and New Zealand  -  Source: www.taxfoundation.org - www.tradingeconomics.com - www.rivermate.com}