Over $5 Million, 4.7% Of GDP, Remitted Out Of Palau In 6 Months

Funds sent overseas subject to 4% tax; $222.045 raised this year

 By L. N. Reklai

KOROR, Palau (Island Times, May 31, 2016) – $5,549,203.76 million dollars was remitted out of Palau in the last 6 months of this year according to Revenue and Tax 2nd Quarter Report.  This represents roughly 4.7% of Palau’s gross domestic product or GDP.  

Funds remittance means any money sent outside of the Republic of Palau that is not for the purpose of buying goods or services, or for government purposes or in accordance with FDIC regulations.  These means funds remitted by Palauans and contract workers to family members overseas, or business income sent to business or personal accounts overseas or for other purposes that do not fall within the exemptions.

RPPL 9-2 mandated that funds sent out of Palau, not for purchase of goods and services, not for government purposes or to meet FDIC regulations, shall be assessed a tax of 4% to be remitted each month to the Ministry of Finance.  This first 2 quarters of fiscal year 2016, Palau has received $222,045.51 or 4% of this income remittance in compliance with RPPL 9-2.  This fund, according to the law, is allocated to fund government’s Pension Plan’s unfunded liability.

Island Times
Copyright © 2016 Island Times. All Rights Reserved

Rate this article: 
No votes yet

Add new comment