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On 3 February 2021, the Comprehensive Tax Reform Legislation 2021 was introduced in the Senate of Palau. It includes a change to how most goods and services will be taxed by introducing the Palau Goods and Services Tax (PGST). The tax would be set at 10% for most goods and services sold in Palau, including digital services. Any person supplying, within a year, an amount valued above the registration threshold of USD 300,000 would need to register for the tax with the government.
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