(Last updated: 4 Aug 2011)

Business etiquette

Business tips

The handshake is the most common form of greeting in East Timor. Men shake hands when meeting a woman from a foreign culture but rarely when greeting a Timorese woman.

Timorese traditions of clothing are modest. Garments above the knee (for both men and woman) are rarely acceptable in a professional or traditional social occation. A relaxed dress code applies with short-sleeved shirt/pants appropriate for most business meetings. Light-coloured, natural fabrics such as cotton and linen are recommended for protection against mosquitoes. More formal attire is suggested if visiting senior East Timorese business and political leaders, however, men don't need to wear coats/jackets and ties.

Pre-arranged appointments are highly recommended as contacts frequently move around East Timor and to and from Australia, often at short notice. It's a good idea to confirm meetings a day before the scheduled time and be prepared to reschedule at the last minute.

It is polite to wait until your host invites you to sit down, or to eat and drink.

Taxation

All businesses operating in East Timor must obtain a Tax Identification Number from the Internal Revenue Service.

The three taxes assessable on exporting goods to East Timor are:

• import duty
• excise or excise equivalent duty
• sales tax

The application of the import duty is equivalent to five per cent of the customs value once it's determined. The excise or excise equivalent duty applies equally to goods imported or made in East Timor.