Palau
Palau: 3 company types, its taxes, banking and business environment.
Forming a company
Company types in Palau
The 3 forms 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 Palau. 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 Palau.
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 Palau: where to register, file and check.
Blocs and agreements
The trade arrangements Palau 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 Palau 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
- 12%Official palaugov.pw as of 2026-10-15 · the rate for the Palau corporation (for-profit)
Quote
Business Profits Tax is assessed an applied at the rate of 12% on the person’s net income for each tax year.
- 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
- USD 100Official The registry or ministry page as of 2026-10-15
Quote
Annual report for Palau for-profit corporation $100.00 $200.00 AR-1
VAT
The tax on what the company sells in Palau, and when it must register, as the tax authority states it.
- Standard rate
- Not in our recordsThe tax authority’s pages have not been read for Palau.
Tax calendar
When the main returns and payments fall due in Palau, tax year 2025, as the tax authority states it.
- Corporate tax return
- 3 months after the end of the accounting period · each year
The BPT annual return must be filed within 3 months of the end of the tax year; the tax year is the calendar year for most taxpayers.
Quote
An annual return for a tax year must be filed within 3 months of the end of the tax year.
- Corporate tax, final payment
- Not in our records
palaugov.pw/executive-branch/ministries/finance/brt/ inaccessible when checked
- Corporate tax, instalments
- Day 15 of the following month · each quarter
Instalments are due by the 15th day of the month following the end of the 3rd, 6th, 9th and 12th months of the tax year.
Quote
Payment installments are due by the 15 th day of the month following the end of the 3 rd , 6 th , 9 th, and 12 th months of your tax year.
- Personal income-tax return
- Not in our records
palaugov.pw/executive-branch/ministries/finance/brt/ inaccessible when checked
- Personal income tax, final payment
- Not in our records
palaugov.pw/executive-branch/ministries/finance/brt/ inaccessible when checked
- Personal income tax, instalments
- Not in our records
palaugov.pw/executive-branch/ministries/finance/brt/ inaccessible when checked
- VAT return
- Day 30 of the following month · each month
The PGST return is monthly and due on the 30th day following the end of the PGST period. Because months have 28 to 31 days, 'the 30th day following' is a number of days rather than a day of the following month; the rule records day 30 of the following month as the nearest computable form.
Quote
due on the 30 th day following the end of the PGST period
- Payroll withholding
- Not in our records
palaugov.pw/executive-branch/ministries/finance/brt/ inaccessible when checked
Running the company
Running a company here
Not in our records The authorities’ pages on running a company have not been read for Palau yet.
Economy and trade
What it exports
Goods Palau exported, by product, as a share of its goods exports each year. Exports include goods passing through for re-export. A share describes Palau’s own trade; it does not compare places.
| Product (HS heading) | 2022 | 2023 | 2024 | Value, 2024 |
|---|---|---|---|---|
| Yachts and other vessels for pleasure or sports; rowing boats and canoes HS 8903 | 31.2% | 4.6% | 53.9% | US$11 m |
| Cruise ships, excursion boats, ferry-boats, cargo ships, barges and similar vessels for the transport of persons or goods HS 8901 | 18.1% | 1.8% | 22.7% | US$4 m |
| Light-vessels, fire-floats, dredgers, floating cranes, and other vessels the navigability of which is subsidiary to their main function; floating docks; floating or submersible drilling or production platforms HS 8905 | under 0.05% | under 0.05% | 7.6% | US$2 m |
| Live fish HS 0301 | 5.5% | 4.9% | 2.6% | US$1 m |
| Ferrous waste and scrap; remelting scrap ingots of iron or steel HS 7204 | 3.1% | 6.5% | 2.3% | US$0 m |
| Turbojets, turbopropellers and other gas turbines HS 8411 | 0.13% | under 0.05% | 2.1% | US$0 m |
| Other vessels, including warships and lifeboats other than rowing boats HS 8906 | under 0.05% | under 0.05% | 1.8% | US$0 m |
| Insulated (including enamelled or anodised) wire, cable (including coaxial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fibre cables, made up of individually sheathed fibres, whether or not assembled with electric conductors or fitted with connectors HS 8544 | under 0.05% | under 0.05% | 1.3% | US$0 m |
| Aluminium waste and scrap HS 7602 | 0.22% | 2.6% | 0.99% | US$0 m |
| Electrical and electronic waste and scrap HS 8549 | 1.0% | 0.83% | 0.62% | US$0 m |
Total goods exports, 2024: US$20 m. The ten largest headings are shown.