By: L.N. Reklai
August 10, 2017 (Koror, Palau) Bureau of Tax and Revenue issued a notice today advising the public that any long term lease of properties (houses, boats, land and etc.) are by law considered business activity and subject to 4% tax. [restrict]
The notice further states that this law under 40PNC Chapter 12 has been analyzed by both Trial and Appellate Division and found that “irrespective of whether the owner is in business of leasing land or not”, long term lease is considered a business and is subject to tax.
The Bureau of Tax and Revenue further encourages individuals, clans, organizations or families to voluntarily file tax if they have made long term leases in the past.
Meanwhile, Ministry of Justice is catching Bangladeshi operated store in Malakal selling individual sticks of cigarettes for .50 cents and warns the public that this is an illegal act. Law prohibits selling individual cigarette sticks and penalties can be imposed on individuals and/or business caught breaking the law. [/restrict]
Address: P.O Box 6021 Koror Palau, 96940
Phone #: (+680) – 488 – 3420
Fax #: (+680) – 488 – 2732
Office Hours: Monday to Friday 8am to 5pm only.