KOROR, Palau — Local employees in Palau are set to receive tax refunds next week, marking the first such disbursement in the country’s history. The refunds will be issued from Monday, February 12 to Friday, February 16, at the Amayong Cultural Center in Koror, running from 10 a.m. to 6 p.m.
More than 3,000 individuals qualify for tax refunds, with eligibility reserved for Palauan citizens who were employed in 2023 and earned $15,000 or less. Additionally, these individuals must have had their employers file their W-2 withholding tax forms.
Of the 12,181 employed individuals in Palau, 5,549 are Palauans. Among them, 3,219, roughly 74% of the total workforce, are eligible for refunds as they fall within the $15,000 income bracket.
The refunds fall under the Palau Goods and Services Tax (PGST) system, which replaced the Gross Receipt Tax (GRT) tax system. President Whipps highlighted that these tax refunds are designed as targeted assistance to aid those in the greatest need as per the law.
With the announcement of the refunds, questions have arisen regarding eligibility concerns, particularly for Palauan citizens who worked in Palau in 2023 but have since relocated to the United States. Minister of Finance Kaleb Udui Jr. addressed these queries during a recent press conference, directing individuals to contact the Tax Office at 488-2465 or email taxhelp@palaugov.org for clarification.