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Gross Revenue Tax (GRT)

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.