For small businesses that are not registered for PGST and have an annual gross revenue that is more than $50,000.
Gross revenue tax (GRT) is retained for any non-PGST registered person (individual or entity) with an annual gross income that is more than $50,000. GRT of 4% of the person’s gross revenue is payable.
Gross revenue derived by the person is reduced by the following amounts:
- The entire amount paid in salaries to citizens who are residents of the Republic of Palau
- Salary paid to resident workers or non-resident workers up to a maximum of $5,000 per quarter.
When would a person file a return?
A person who continues to operate under GRT must make and file a quarterly return on or before the 30th day of each month following the end of each quarter.
A full amount of the tax liability must accompany the return.
Businesses with an annual gross income less than $50,000 will not be subject to GRT, however, they will pay a small additional business license fee of $100 to be paid in quarterly installments to ensure tax compliance.