Micronesia
Micronesia: 1 company type, its taxes, banking and business environment.
Forming a company
Company types in Micronesia
The form a founder can choose here, each with its own figures. Open one for its sources.
Doing business here
Business accounts
Providers whose own published list of countries names Micronesia. A listing means a company formed here may apply, not that it will be accepted.
Not in our records No provider's country list has been read for Micronesia.
EU listings
Two lists a bank checks when it opens an account for a company or its owner.
- EU high-risk third countries (AML)
- Not listed
- EU non-cooperative jurisdictions for tax purposes
- Not listedOfficial EUR-Lex, 52026XG01465, Annex I as of 2026-02-17
Official sites
The authorities’ own sites for Micronesia: where to register, file and check.
Blocs and agreements
The trade arrangements Micronesia belongs to, as each arrangement’s own texts state them: since when, and what each covers. What a membership means for a business is for you to judge.
None of the 36 arrangements we hold lists Micronesia as a member.
Regional and customs arrangements only, 36 of them; bilateral trade agreements are not yet in our records.
Tax
Company tax
Tax, and what the company owes the registry each year.
- Corporate income tax
- 3%Official fsmlaw.org as of 2026-10-14 · the rate for the Corporation (national charter, Title 36 FSM Code)
Quote
a tax of three percent per year upon that portion of the amount of gross revenues earned by every business
- Distributions
- Not in our records
- Audit
- Not in our records
- Small-company relief
- Not in our records
- Annual obligations
- Not in our records
- Annual registry fee
- 25 (currency not stated by the source)Official The registry or ministry page as of 2026-10-25
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The following fees shall be paid to the Registrar upon the filing of corporate documents:
VAT
The tax on what the company sells in Micronesia, and when it must register, as the tax authority states it.
- VAT or sales tax
- None levied
At national level the Federated States of Micronesia levies no VAT or GST. The Department of Finance and Administration's Title 54: Taxation and Customs materials, listed on its legislation page, cover the Duties & Customs Act, exchange of tax information, the corporate income tax regime, penalties, customs regulations, revenue administration and the taxation of wages, salaries and gross revenues — with no consumption tax among them. The record is the national position only; the four states' own revenue taxes sit outside the national pages read.
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Duties & Customs Act ... FSMCode Taxation of Wages Salaries Gross Revenues
Tax calendar
When the main returns and payments fall due in Micronesia, tax year 2026, as the tax authority states it.
- Corporate tax return
- Not levied here
The Federated States of Micronesia levies no corporate income tax. Title 54, Chapter 1 of the FSM Code (the Income Tax Law) taxes wages and salaries and, in subchapter IV (§§ 141-144), the gross revenue of businesses; no annual net-income return for companies is imposed. Read at https://www.fsmlaw.org/fsm/code/title54/T54_Ch01.htm on 22 October 2026.
- Corporate tax, final payment
- Not levied here
No corporate income tax is levied, so there is no balancing payment of corporate tax. The business tax is the gross revenue tax paid quarterly under § 143 (see cit_estimated_payment and https://www.fsmlaw.org/fsm/code/title54/T54_Ch01.htm, read 22 October 2026).
- Corporate tax, instalments
- Not levied here
No corporate income tax or corporate instalment regime exists. Businesses instead pay the gross revenue tax quarterly: § 143 requires payment 'on or before April 30, July 31, October 31, January 31' based on the preceding quarter's gross revenue. Source https://www.fsmlaw.org/fsm/code/title54/T54_Ch01.htm, read 22 October 2026.
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Every business, on or before the last day of the month following the close of each quarter, to wit: on or before April 30, July 31, October 31, January 31, shall pay, based on its gross revenue of the preceding quarter, the amount of tax imposed by this chapter
- Personal income-tax return
- Not required here
Resident individuals file no annual return: the FSM Income Tax Law collects tax on wages and salaries by employer withholding under §§ 131-139, and § 115 leaves the forms of return to the Secretary of Finance without imposing an annual return on employees. Read at https://www.fsmlaw.org/fsm/code/title54/T54_Ch01.htm on 22 October 2026.
- Personal income tax, final payment
- Not required here
There is no annual assessment and so no balancing payment for employees; tax on wages and salaries is withheld by the employer and remitted quarterly under § 131. Refund claims are dealt with in § 123. Read at https://www.fsmlaw.org/fsm/code/title54/T54_Ch01.htm on 22 October 2026.
- Personal income tax, instalments
- Not required here
No advance-payment regime applies to resident individuals; the wage and salary tax is withheld at source by the employer under §§ 131-139. Read at https://www.fsmlaw.org/fsm/code/title54/T54_Ch01.htm on 22 October 2026.
- VAT return
- Not levied here
The Federated States of Micronesia levies no VAT or GST. Title 54 imposes the wage and salary tax, the gross revenue tax and customs duties; no general consumption-tax return exists. Read at https://www.fsmlaw.org/fsm/code/title54/ and https://www.fsmlaw.org/fsm/code/title54/T54_Ch01.htm on 22 October 2026.
- Payroll withholding
- Day 31 of the following month · each quarter
The return and payment of tax withheld are due on the last day of the month following each quarter: 30 April, 31 July, 31 October and 31 January. The rule records day 31 of the month after the quarter; April's deadline is the 30th because that month has 30 days.
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on or before the last day of the month following the close of each quarter, to wit, on or before April 30, July 31, October 31, and January 31, pay the tax withheld
Running the company
Running a company here
Not in our records The authorities’ pages on running a company have not been read for Micronesia yet.
Economy and trade
What it exports
Goods Micronesia exported, by product, as a share of its goods exports each year. Exports include goods passing through for re-export. A share describes Micronesia’s own trade; it does not compare places.
| Product (HS heading) | 2022 | 2023 | 2024 | Value, 2024 |
|---|---|---|---|---|
| Fish, frozen, excluding fish fillets and other fish meat of heading 0304 HS 0303 | 95.6% | 93.7% | 96.3% | US$318 m |
| Fish fillets and other fish meat (whether or not minced), fresh, chilled or frozen HS 0304 | 2.4% | 3.1% | 1.3% | US$4 m |
| Parts suitable for use solely or principally with the apparatus of headings 8524 to 8528 HS 8529 | under 0.05% | under 0.05% | 0.75% | US$2 m |
| Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scintigraphic apparatus, other electromedical apparatus and sight-testing instruments HS 9018 | under 0.05% | under 0.05% | 0.30% | US$1 m |
| Parts of goods of heading 8801, 8802 or 8806 HS 8807 | under 0.05% | under 0.05% | 0.14% | US$0 m |
| Telephone sets, including smartphones and other telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528 HS 8517 | 0.12% | 0.07% | 0.09% | US$0 m |
| Women's or girls' suits, ensembles, jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear) HS 6204 | 0.27% | 0.34% | 0.09% | US$0 m |
| Unwrought aluminium HS 7601 | under 0.05% | under 0.05% | 0.08% | US$0 m |
| Animal products not elsewhere specified or included; dead animals of Chapter 1 or 3, unfit for human consumption HS 0511 | under 0.05% | 0.06% | 0.08% | US$0 m |
| Insecticides, rodenticides, fungicides, herbicides, anti-sprouting products and plant-growth regulators, disinfectants and similar products, put up in forms or packings for retail sale or as preparations or articles (for example, sulphur-treated bands, wicks and candles, and fly-papers) HS 3808 | under 0.05% | under 0.05% | 0.07% | US$0 m |
Total goods exports, 2024: US$330 m. The ten largest headings are shown.