Tax laws Marshall Islands
The Republic of the Marshall Islands (RMI) maintains a straightforward taxation system characterized by turnover taxes, import duties, and personal income tax.
1. Income Tax:
Individual Income Tax:
- Personal income tax is levied at rates of 8% and 12%, applied progressively.
Corporate Income Tax:
- Resident companies are subject to an $80 tax on the first $10,000 of income, with a 3% tax applied to income exceeding this threshold.
- Non-resident companies not conducting business within the Marshall Islands are exempt from all taxes, including income, profits, dividends, royalties, and compensation.
2. Turnover Tax:
- The current Business Profits Tax (BPT) structure includes a presumptive tax of $80 for businesses with annual turnover less than $10,000, and a 3% tax for turnover between $10,000 and $100,000.
3. Consumption Tax:
- The Marshall Islands Consumption Tax (MICT) is set at a rate of 10%, applicable to businesses with annual turnover exceeding $100,000.
4. Import Duties:
- Goods in transit are exempt from import tax, and import tax on re-exported goods is refundable. There are no taxes on exports.
5. Social Security Contributions:
- Employers and employees each contribute 8% of wages to the Social Security Administration. The maximum quarterly taxable wages are $10,000 as of March 6, 2017.
Recent Developments:
- Tax Reforms: Proposed reforms aim to implement a Business Profits Tax (BPT) with a 20% rate for businesses exceeding $100,000 in turnover, and to adjust the MICT structure.
Note: Tax laws and regulations are subject to change. For the most current information, it is advisable to consult official sources or seek professional tax advice.
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