FIB Extends Deferement for Payment of Annual Foreign Worker Fee

KOROR, Palau – The Foreign Investment Board of the Republic of Palau is announcing that, effective immediately, Foreign Investment Act Certificate (FIAC) license holders who owe annual foreign worker fees may pay those fees by September 30, 2021, without the fees being considered late. This action will apply to any foreign worker fee payment that is due between April 9, 2020, and September 30, 2021. The Board is taking this action for the purpose of helping local businesses that are being severely impacted by the COVID-19 pandemic; it
continue.s th.e .Board’s efforts to do what it can to help Palau’s businesses weather the current economic cns1s.
An annual foreign worker fee of $500 per worker is required under 28 PNC § 106(10) for the holders of FIACs. Section 11(12) of the Regulations Implementing the Foreign Investment Act requires that all FIACs include the condition that the FIAC holder pay the foreign worker fee. This payment is typically due at the same time FIACs are renewed each year.
However, since the advent of the COVID-19 pandemic, Palau’s economy has experienced a severe shock because of the suspension of commercial flights and the loss of nearly all tourist revenue. As a result of this economic situation, many FIAC holders are generating no income and are unable to pay the required Foreign Worker Fee.
The Foreign Investment Board is the statutorily created body that is charged with reviewing applications for a FIAC to ensure that investment and development are in line with the goals and priorities of the people of Palau. It is also responsible for monitoring the operations of FIAC license holders and bringing enforcement actions for violations of Palau’s Foreign Investment Act.
For more information, contact Fermin Meriang, Chairman of the Foreign Investment Board, at +680 488-1135/2073.