Paying Taxes in


Below is a detailed summary of the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as administrative burden in paying taxes and complying with postfiling procedures.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed on June 1, 2016 covering for the Paying Taxes indicator calendar year 2015 (January 1, 2015 – December 31, 2015).

Compare Palau to 189 other economies.

Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% of profit) Notes on TTR
Gross revenue tax 4 46 4% revenue minus labor costs 65.82
Employer paid - Social security contributions 4 96 6% gross salaries 6.67
Employer paid - Health insurance contributions 0 jointly 2.5% gross salaries 2.82
Road tax 1 $200 to $750 depending on weight fixed fee 0.13
Business license 1 $50 fixed fee 0.01
Fuel tax 1 included into the fuel price 0.00 small amount
Employee paid - Social security contributions 0 jointly 6% gross salaries 0.00 withheld
Employee paid - Health insurance contributions 0 jointly 2.5% gross salaries 0.00 withheld
Totals: 11.0 142.0 75.4
  • Taxes by type Answer
    Profit tax (% of profit) 65.8
    Labor tax and contributions (% of profit) 9.5
    Other taxes (% of profit) 0.1
    Answer Score
    Postfiling index (0-100)
    VAT refunds
    Does VAT/GST exist? No
    Frequency of VAT/GST refund submission N/A
    Does a VAT/GST refund process exist per the case study? N/A
    Restrictions on VAT refund process N/A
    Likelihood of VAT audit N/A
    Time to comply with VAT refund (hours) N/A No VAT
    Time to obtain a VAT refund (weeks) N/A No VAT
    Corporate income tax audits
    Does corporate income tax exist? No
    Likelihood of corporate income tax audit N/A
    Time to comply with a corporate income tax audit (hours) N/A No CIT
    Time to complete a corporate income tax audit (weeks) N/A No CIT
    Administrative appeal process
    First level administrative appeal authority N/A
    Is the appeal authority independent? N/A
    Are appeal guidelines accessible to the public? N/A
    Source of appeal guidelines N/A
    Is there a legal time limit for the appeal authority to issue a decision on the tax appeal? N/A
    Legal time limit N/A