DoubleTaxationTaxes on salary: Palau preliminary data
How much income tax and social contributions are paid on a salary in Palau, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | US$70,326 ≈ €60,000 |
|---|---|
| Income tax | US$7,319 ≈ €6,244 |
| Employee contributions | US$6,681 ≈ €5,700 |
| Take-home pay | US$56,326 ≈ €48,056 |
| Employer contributions and payroll taxes | US$6,681 ≈ €5,700 |
| Employer's labour cost | US$77,007 ≈ €65,700 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 US$35,163 | €60,000 US$70,326 | €120,000 US$140,652 |
|---|---|---|---|
| Company | US$3,798 12.0 % | US$7,595 12.0 % | US$15,190 12.0 % |
| Sole proprietor · Business gross revenue tax (Tax-200 quarterly return) | US$1,407 4.4 % | US$2,813 4.4 % | US$5,626 4.4 % |
Special tax regimes
There are no special regimes for individuals.
Tax residence
The tax residence check does not cover Palau yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 1.1721 USD (US dollar is the official currency (no national currency), 02/01/2026) ↗
Sources
- Bureau of Revenue and Taxation Palau — Tax-100 Wages and Salary Withheld Form (rates)
- Bureau of Revenue and Taxation Palau — Tax-004A 2025 Wages and Salary Reconciliation Form
- Bureau of Revenue and Taxation Palau — Tax-502 Business Profits Tax Return
- Bureau of Revenue and Taxation Palau — Tax-200 Business Gross Revenue Quarterly Tax Return
- Government of Palau — Tax Forms & Applications
- Government of Palau tax reform — Wages & Salary Tax
- Government of Palau tax reform — Business Profits Tax (BPT)
- Government of Palau tax reform — Palau Goods & Services Tax (PGST)
- US SSA — Social Security Programs Throughout the World: Asia and the Pacific, 2018 — Palau
Data checked: 08/11/2026. An indicative calculation for a typical case. Not tax advice.