iCalculator™ PW: Palau Tax Calculators
Welcome to iCalculator™ PW, your comprehensive suite of free tax calculators for Palau. iCalculator™ has provided free tax calculators for Palau since 2019. Since those early days we have extended our resources for Palau to includes Tax Guides, Tax Videos and enhanced the tax calculators and supporting tax information. The Palau Tax Calculator and salary calculators within our Palau tax section are based on the latest tax rates published by the Tax Administration in Palau. In this dedicated Tax Portal for Palau you can access:
Palau Tax Calculator 2024/25
The Palau Tax Calculator below is for the 2024 tax year, the calculator allows you to calculate income tax and payroll taxes and deductions in Palau. This includes calculations for
- Employees in Palau to calculate their annual salary after tax.
- Employers to calculate their cost of employment for their employees in Palau.
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Discover Palau
Palau is a captivating island country located in the western Pacific Ocean, renowned for its pristine natural beauty, rich cultural heritage, and vibrant economy. This overview delves into Palau's geographical setting, cultural dynamics, and economic landscape, offering insights into this unique island nation.
Palau is part of the Micronesia region in the western Pacific Ocean, situated southeast of the Philippines and north of Indonesia. It consists of approximately 340 islands, forming the western chain of the Caroline Islands. The country is known for its stunning coral reefs, diverse marine life, and lush tropical landscapes. Neighboring country links: Philippines and Indonesia.
Palau's culture is deeply rooted in its history, traditional customs, and the natural environment. The Palauan society is matrilineal, with a strong emphasis on family and community ties. Traditional practices and ceremonies play a significant role in Palauan life, reflecting the community's respect for nature and ancestral heritage. The arts, including story-telling, dance, and carving, are important cultural expressions that preserve Palau's rich heritage.
The economy of Palau is diverse, with tourism, agriculture, and fishing being the primary sectors. The country's spectacular natural environment, including world-renowned diving spots, attracts tourists from around the globe, making tourism a crucial driver of the economy. Sustainable tourism practices are emphasized to protect Palau's delicate ecosystems and cultural sites.
Tourism is the backbone of Palau's economy, with the country's islands offering unique experiences for eco-tourism, adventure tourism, and cultural tourism. Palau's commitment to environmental conservation, including the establishment of marine sanctuaries and protected areas, enhances its appeal as a tourist destination. The sector provides significant employment opportunities and is a major source of revenue.
Although limited by land area, agriculture plays an essential role in the local economy and sustenance of the population. Taro, cassava, and sweet potatoes are among the key crops. Fishing is also a vital activity, with the surrounding Pacific waters rich in marine resources. Sustainable practices are promoted to ensure the longevity of fishing as an economic activity.
Palau is exploring diversification of its economy through the development of sectors like renewable energy, aquaculture, and information technology. These emerging sectors represent potential growth areas, contributing to economic resilience and sustainability.
In conclusion, Palau is a country where natural beauty, cultural richness, and economic potential converge. Its strategic location, combined with a commitment to environmental conservation and sustainable development, positions Palau as a unique destination and a vibrant economy in the Pacific region.
Tax Overview of Palau
The Republic of Palau offers a unique tax system that reflects its economic structure, cultural values, and development objectives. This overview provides insights into the types of taxes, tax administration, and the implications for individuals and businesses operating within Palau's borders.
Palau's tax system encompasses a variety of taxes including income taxes, business gross revenue tax, import duties, and other indirect taxes. The government of Palau has designed its tax system to encourage economic growth, attract investment, and ensure fairness. A key feature of Palau’s taxation is its emphasis on indirect taxes, which helps to spread the tax burden and reduce direct taxation on individuals and businesses.
Income Tax
Individuals and businesses in Palau are subject to income tax. The income tax system is structured to be progressive for individuals, ensuring that the tax rate increases with the ability to pay. For businesses, income tax is levied on net profits, encouraging reinvestment and growth within the local economy.
Business Gross Revenue Tax
The Business Gross Revenue Tax (BGRT) is a tax on the gross revenue of businesses operating in Palau. This tax is designed to simplify the tax obligations for businesses, reducing the administrative burden and encouraging compliance. The BGRT reflects Palau's strategy to provide a business-friendly environment while ensuring that companies contribute their fair share to the economy.
Import Duties and Other Indirect Taxes
Import duties are levied on goods brought into Palau, with the aim of raising revenue and, in some cases, protecting local industries. Other indirect taxes, including excise taxes on specific goods, are used to manage consumption patterns and contribute to public funding. These taxes are crucial for diversifying government revenue and funding essential services.
Administration and Compliance
The Bureau of Revenue and Taxation is responsible for tax administration in Palau. The bureau's role includes tax collection, enforcement of tax laws, and providing taxpayer assistance. Efforts to modernize tax administration and improve compliance are ongoing, with a focus on making tax payment processes more efficient and transparent.
In conclusion, Palau's tax system plays a critical role in supporting the government's revenue needs while promoting economic activity. The balance between direct and indirect taxes, along with efforts to ensure a business-friendly environment, underscores Palau’s approach to taxation. For detailed information on the current tax rates, tools, and tables, offering a comprehensive resource for navigating Palau's tax system, visit our tax hub.