Cook Islands RMD number guide
RMD number
RMD number is issued by Revenue Management Division. The entities incorporated at the Ministry of Justice under the Companies Act 1971 has to apply to Revenue Management Division for the RMD number. The Cook Islands' tax identifiers are catalogued in the worldwide directory of VAT and tax ID names.
Format - Numeric and must be 5 digits, e.g. NNNNN
Frequently Asked Questions
How do I apply for an RMD number in the Cook Islands?
For individuals, complete the RM1 (Individual Application) form. For businesses, complete the RM2 (Business Application) form and submit it to the Revenue Management Division (RMD) under the Ministry of Finance and Economic Management (MFEM). Entities incorporated under the Companies Act 1971 at the Ministry of Justice must apply for an RMD number separately — company registration alone does not automatically generate one. International companies incorporated after December 17, 2019 must apply within 28 days of incorporation. Once you have your RMD number, you can register for the eTax online system at tax.cookislands.gov.ck. (MFEM)
Are international companies in the Cook Islands still tax-exempt?
No. The International Companies (Removal of Tax Exemption) Amendment Act 2019, effective December 17, 2019, removed all tax exemptions for international companies (ICs). ICs are now required to register with RMD, file company tax returns (including NIL returns with financial statements), and pay tax on Cook Islands-sourced income. An IC is treated as tax resident (subject to 20% tax on worldwide income) if three or more directors reside in the Cook Islands or if effective management is exercised from within the Cook Islands. (MFEM)
What is the VAT registration threshold in the Cook Islands?
VAT registration is mandatory when annual turnover from taxable activities reaches NZD 40,000. Compare this with VAT registration thresholds in other countries. Voluntary registration is available for businesses with turnover above NZD 20,000 but below NZD 40,000 — you cannot register if turnover is under NZD 20,000. The VAT rate is 15% on goods and services supplied in the Cook Islands, as listed in our worldwide tax rates reference. Once registered, VAT returns must be filed monthly by the 20th of the following month. There are two accounting methods: payments basis or invoice basis. (BTIB)
What withholding taxes apply to payments to non-residents from the Cook Islands?
A 15% withholding tax applies to dividends, interest, and royalties paid from the Cook Islands to non-residents. Payments of the same types to residents are subject to a lower 5% withholding rate. Banks paying interest to non-residents are exempt from withholding. There are no capital gains taxes, inheritance taxes, estate duties, gift taxes, or wealth taxes in the Cook Islands. The standard corporate income tax rate is 20%. (BTIB)
What happens if an international company fails to register for an RMD number?
International companies incorporated after December 17, 2019 are legally required to apply for an RMD number within 28 days of incorporation. In most cases, a service provider (such as a Cook Islands Licensed Trustee Company) acts as agent for the RMD application and ongoing tax compliance. The service provider must confirm that Know Your Client (KYC) and Customer Due Diligence (CDD) procedures comply with the Financial Transactions Reporting Act 2017 and international standards including CRS, FATF, and FATCA. Failure to register and file returns exposes the company to penalties. (MFEM)
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