🇵🇼 How tax works
in Palau.
Current BRT wages and salary tax · Income tax guide
The calculation, explained.
Bureau of Revenue & Taxation wages and salary tax: 6% on the first USD 8,000, 10% from USD 8,000 to USD 40,000, and 12% above USD 40,000.
Employer withholding is required. Business Profits Tax and PGST are separate.
Doctors: employment and independent practice
The Palau comparison is an ordinary resident employment scenario. We have not yet verified a doctor-specific independent-practice regime for this country. Do not apply Indonesia’s NPPN 50% here or enter clinic turnover as salary. Practice deductions, professional contributions and mixed income require additional local research.
Tax brackets · USD
Each rate applies only to the income inside that band.
| Taxable income slice | Rate |
|---|---|
| 0 – 8,000 | 6.0% |
| 8,000 – 40,000 | 10.0% |
| Above 40,000 | 12.0% |
Your worked example
Based on your €100,000 annual gross salary estimate, equivalent to US$112,029.
- 1. Annual input
- US$112,029
- 2. Custom deductible expenses
- − US$0
- 3. Modeled allowance / base deduction
- − US$0
- 4. Modeled taxable base
- US$112,029
| Taxed portion | Rate | Tax |
|---|---|---|
| US$8,000 | 6.0% | US$480 |
| US$32,000 | 10.0% | US$3,200 |
| US$72,029 | 12.0% | US$8,643 |
- 5. Modeled tax credits (capped at tax due)
- − US$0
- 6. Included additional tax
- US$0
- 7. Income tax
- US$12,323
- Effective rate = tax ÷ annual input
- 11.0%
- After income tax, before other deductions
- US$99,705
Sources & assumptions
Sources checked 12 October 2026. The schedule's tax year is shown above; checking a source does not make a simplified model a complete payroll calculation.
Assumptions: single, no dependent children, age 30+, full-year resident, ordinary employment income only. No capital gains, dividends, special expatriate relief or double-tax treaty adjustments.