Asia-Pacific · Tax guide

Palau

Palau uses the US dollar, taxes business profits at 12% and charges the Palau Goods and Services Tax (PGST) at 10%, both introduced in its 2023 tax reform. Taxes are administered by the Bureau of Revenue and Taxation.

Updated 2 October 2026 · 0 of 3 figures checked against official sources

Check your obligations

At a glance

Business profits tax: 12%
PGST: 10%
Withholding on payments abroad: 0%

Business profits tax

Since 2023, businesses pay 12% on net profits, replacing the old gross revenue tax. Small businesses below a revenue threshold are exempt.

PGST

The Palau Goods and Services Tax is 10%, charged by registered businesses and filed monthly.

Key dates

MonthlyPGST return
After the year-endAnnual business profits tax return

Figures and sources

3 figures

Corporate income tax rate12%

Income or business tax legislation
Under professional review
PGST rate10%

PGST legislation
Under professional review
Withholding on payments to non-residents0%

Income or business tax legislation
Under professional review

Indicative only. This assessment is a high-level overview of tax obligations in Palau based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a qualified tax adviser in Palau (a tax adviser in Palau) before making compliance decisions.