The new measure imposes taxes on corporations which has a shareholder equity or paid-in capital as of the beginning of its taxable year is less than $1,000,000 and the shareholder equity of the Palau’s Corporation control group is less than $10,000,000.
Senate Bill 8-41, also proposed that the corporation is principally engaged in business in Palau as a financial institution or hotelkeeper.The control group is defined as a corporation and its 80 percent or greater owned subsidiaries , its parent companies that own directly or indirectly 80 percent or more of the corporation, and the 80 percent or greater owned subsidiaries of such parent companies.The bill proposed a tax at the rate of 26 percent for each taxable year on the taxable income of every corporation.Under measure the payment of tax due will be within 30 days of the close of the corporation’s taxable year.
