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
PGST Input Tax Credit, Tax Return & Record Keeping
More information regarding PGST can be found by clicking the link below https://drive.google.com/drive/folders/1OqIQpMAQ3kwn1mfZY5lSasOFJWRhEJIP?usp=shari