Marshall Islands: Personal Taxation

Income Tax

There is no Marshall Islands wages and salaries tax liability for non-resident domestic companies or their employees

With respect to resident companies' employees, businesses are required to withhold and pay to the National Government a tax imposed on the employee's wages and salaries.

The wages and salaries tax, as previously mentioned, is 8% per annum on the first US$10,400 of taxable income earned by the employee, and 12% thereafter.

Employees whose gross annual wages and salaries are US$5,200 or less are allowed an exemption of US$1,040 per year (or US$20 per week).

The tax is payable every four weeks.

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