By: Eustoria Marie Borja
KOROR, Palau – The Palau Bureau of Revenue & Taxation (BR&T) announced the disbursement of tax refunds and social assistance payments to approximately 3,802 eligible Palauan citizens. The total distribution, amounting to $1.8 million, will occur over the next week.
Expanded Tax Refunds and New Social Subsidy
This disbursement follows the passage of Republic of Palau Public Law (RPPL) 11-34, the Supplemental Budget Act of 2024. The act broadened eligibility for tax refunds to include those earning between $15,000 and $30,000 annually. Additionally, it established a new social subsidy of $480 per year for retirees.
Wages and Salary Tax Refunds
Starting today, July 26, 2024, approximately 1,802 eligible Palauan employees who earned between $15,000 and $30,000 in 2023 will receive a $480 wage and salary tax (WST) refund, totaling approximately $845,000. The distribution will take place at the Ngarachamayong Cultural Center from 9:00 AM to 7:00 PM.
To claim their refund, employees must present a valid government-issued photo ID (driver’s license or passport) and sign an attestation form verifying their information and acknowledging receipt. Refunds will be automatically processed upon filing of employee W-2 forms with the BR&T.
Note for Previous Refund Recipients
Those who received earlier refunds for contributions to non-profit organizations or tuition payments will have their current refund adjusted to reflect the previously issued amount.
Social Assistance for Retirees and Disabled Citizens
On Monday, July 29, 2024, the BR&T will distribute $480 social assistance payments to approximately 2,000 retired Palauan citizens, including those receiving disability insurance benefits. According to Director Elway Ikeda, the total amount to be distributed to retirees is approximately $970,000. The disbursement will also occur from 9:00 AM to 7:00 PM at the Ngarachamayong Cultural Center.
Qualified individuals receiving benefits from the Republic of Palau Social Security (ROP SS) will have their payments processed automatically. For those unable to collect their checks in person, a designated representative with a power of attorney or written authorization and a valid ID can claim the payment.
Dual Citizen Employees
Palauan dual citizen employees, particularly those born outside of Palau and who earned between $15,000 and $30,000 in 2023, are also eligible for a $480 WST refund. Due to additional citizenship verification procedures, their refunds may experience a slight delay and will not be available during the initial July 26th disbursement.
To ensure proper distribution, these employees must submit proof of citizenship, such as a Republic of Palau-issued passport, official birth certificate, or other relevant documents. Once citizenship and employer-filed W-2s are confirmed, the BR&T will process the refund and provide an estimated disbursement date.