🇲🇭 Marshall Islands Tax Guide - Income Tax, Corporate Tax & Special Regimes

Top income tax 12.0% Territorial system

Corporate tax 16.0%

Consumption tax 12.0% standard rate

Tax residency 183 days

Marshall Islands tax profile

Data year: 2026

Tax system: Territorial The national government taxes employment through wage-and-salary withholding (still under the Income Tax Act 1989), taxes most larger business profits at 16% net profit tax on taxable income from sources in the Marshall Islands (Net Profit Tax Act 2025, tax years from 1 October 2026), and allows qualifying small domestic businesses that are not consumption-tax registered and have under USD 300,000 annual gross revenue to pay gross revenue tax instead (USD 80 on the first USD 10,000 of revenue plus 3% on the excess). A 12% consumption tax applies to taxable supplies and imports from 1 October 2026. Currency is the US dollar. Import duties and local sales taxes in Majuro and Kwajalein remain separate from the national consumption tax.
Top PIT rate: 12.0%
Corporate tax rate: 16.0%
Consumption tax: 12.0%
Capital gains tax: Rate not recorded
Social security (employee): Rate not recorded
Social security (employer): Rate not recorded
Dividend withholding: Rate not recorded
Interest withholding: 10.0%
Royalty withholding: 10.0%
Treaty count: Treaty count not recorded

Corporate

Corporate brackets
Bracket min	Bracket max	Rate	USD equivalent
USD 0	and above	16.0%	$0 +
USD 10,000	and above	3.0%	$10,000 +

Personal income

Personal income brackets
Bracket min	Bracket max	Rate	USD equivalent
USD 0	USD 10,400	8.0%	$0 – $10,400
USD 10,401	and above	12.0%	$10,401 +

Territorial Exemption

Days threshold: 183 days
Residency rules: Under the Net Profit Tax Act, a natural person is a resident if they have a home in the Republic, are present 183 days or more in any twelve-month period, or are a government employee posted abroad. Business income of residents is taxed on Republic sources, with amounts attributable to a permanent establishment outside the Republic excluded. Wage tax applies to wages and salaries received by employees in the Republic regardless of a separate residency label.
Exit tax: No
CFC rules: No

Fiscal year: 01-01 – 12-31
Filing deadline: Wage tax withheld every 4 weeks; gross revenue tax quarterly; net profit tax after year-end

Income Tax Act 1989 (Title 48, Chapter 1) (accessed Oct 9, 2026) Wage and salary tax 8%/12%; legacy gross revenue tax; non-resident services tax 10%; immovable property lease withholding 3%
Net Profit Tax Act 2025 (Title 48, Chapter 7) (accessed Oct 9, 2026) 16% net profit tax; small-business gross revenue tax; non-resident WHT; tax year from 1 Oct 2026; residency 183 days
Consumption Tax Act 2025 (Title 48, Chapter 9) (accessed Oct 9, 2026) 12% standard rate; applies to supplies and imports from 1 October 2026
IMF technical assistance — consumption and income tax reform (Jan 2025) (accessed Oct 9, 2026) Reform timeline; cross-check of wage-tax and business-tax direction
Ministry of Finance — Department of Revenue and Taxation (accessed Oct 9, 2026) National tax administration; MDES portal referenced for taxpayer services

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