Expense management module › Global expense management › Timor-Leste
Last updated : 11.05.2026
Expense rules in Timor-Leste.
Timor-Leste applies no VAT (sales tax 2.5% on imports). Timor Sea oil country, dollarized (USD).
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1Expense rules & reclaimable VAT
No domestic VAT. Sales tax 2.5% on imports (except essentials).
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Meals | 0% | Deductible | Commercial invoice |
| Lodging | 0% | Deductible | Invoice |
| Alcohol | Excise | Limited | Excluded |
| Fuel | Excise | Deductible | Invoice |
| Transport | 0% | Deductible | Taxi/airfare |
| Gifts | 0% | Non-deductible | Cap |
Receipt
Commercial invoice
TIN mandatory
SourcesTimor-Leste Tax Authority
2Mileage allowance
Actual.
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Personal car | – | Fuel | Invoice |
| Company car | – | Card | – |
| Taxi | – | 100% receipt | Invoice |
Tracking
Logbook
Date, distance
SourcesTimor-Leste Tax Authority
3Per diem and travel allowances
Company policy.
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| Dili | $20 | $75 | $150 |
| Baucau | $17 | $60 | $120 |
| Maliana | $15 | $55 | $100 |
| Other | $13 | $45 | $85 |
Currency
USD
Dollarization
SourcesTimor-Leste Tax Authority
4Foreign VAT recovery
No VAT, so no recovery.
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| All companies | No VAT | – | Import sales tax |
| Oil | Conventions | Per contract | TLA contracts |
| Import | 2.5% sales tax | On entry | Customs code |
Limitations
5 years
Keep
SourcesTimor-Leste Tax Authority
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