Palau is in the process of finalizing legislation for a comprehensive tax reform, effective January 1, 2023. The proposed reforms include a transition from the gross revenue tax to a VAT regime, which will be known as a Palau goods and services tax (PGST). The proposed rate for the PGST is 10 percent. Taxpayers would be required to register for PGST if their taxable sales exceed $300,000 in a 12-month period. In addition, the 3 percent general import duty and special import duties will be replaced by the PGST on imports.
Source KPMG
