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Palau Goods and Services Tax (PGST)

A 10% tax on the supply of most goods and services consumed in the Republic of Palau whether imported, manufactured or produced locally.

Who must register for PGST? 

    • Businesses with a taxable supply of more than $300,000
    • All Foreign Investment Approval Certificate (FIAC) holders must register for PGST regardless if the person meets the registration threshold.
    • Voluntary registration option is given to businesses and with a gross revenue that ranges between $50,000 – $300,000.

Exempt from Compulsory Application

    • Person operating a public or private hospital
    • Person operating a public or private medical clinic
    • Not-for-profit education institution
    • Palau Community College
    • Government entity i.e state governments (other than the following entities which are still required to register):
      • Palau Public Utilities Corporation;
      • Palau National Communications Corporation; and
      • Belau Submarine Cable Corporation.
    • Nonprofit Corporation

What is PGST charged on?

    • Taxable supplies made by the registered person however, non-PGST registered persons do not charge PGST.
    • Supply of imported services made to a registered person
    • Taxable imports made by any person

Resources:

More information regarding PGST can be found by clicking the link below https://drive.google.com/drive/folders/1OqIQpMAQ3kwn1mfZY5lSasOFJWRhEJIP?usp=shari