Corporate Tax Guide

Marshall Islands

The Marshall Islands offers a favorable tax system for non-resident companies, as they are exempt from corporate income tax. This makes it an attractive jurisdiction for offshore business activities, as they do not have to pay taxes on income earned outside the Marshall Islands. The general corporate income tax rate is 80 US dollars for income up to 10,000 US dollars, with a 3% tax on any excess amount. There is also no value-added tax and no withholding tax for non-residents on dividends, interest, or royalties. However, there is limited information available on the Composite Effective Average Tax Rate and Composite Effective Marginal Tax Rate.

Published — 2/21/2024 · Time of Update — 4/05/2026

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Marshall Islands

Marshall Islands Corporate Tax Brief

PwC World Tax Summary OECD Statistics

Published — 2/21/2024 · Time of Update — 4/05/2026

Corporate Income Tax (CIT)

General CIT Rate:

Within 10,000 US dollars, a corporate income tax of 80 US dollars is collected. Any excess amount is subject to a 3% tax. However, Non-resident companies not conducting business within the Marshall Islands are exempt from corporate income tax. This makes the jurisdiction attractive for offshore business activities as they do not have to pay taxes on income earned outside the Marshall Islands. https://internationalwealth.info/en/offshore-taxes/everything-you-need-to-know-about-the-tax-system-in-the-marshall-islands/

CIT Return Due Date:

N/A for non resident companies

CIT Payment Due Date:

N/A for non resident companies

CIT Estimated Payment Due Date:

N/A for non resident companies

Withholding Tax (WHT)

Resident Withholding Tax (Dividend/Interest/Royalty):

Non-Resident Withholding Tax (Dividend/Interest/Royalty):

Value-Added Tax (VAT)

General VAT Rate:

Learn More Value-Added Tax (VAT)

Capital Gain Tax (CGT)

General Capital Gain Tax Rate:

Effective Tax Rate (ETR)

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Additional info

Corporate Income Tax (CIT)

Companies registered in one of the Marshall Islands international registries qualify as non-residents if they do not conduct any business in the Marshall Islands.

A standard rate of 10% is applied for non-residents

gsl.org · marshall islands

Personal Tax

Personal income tax is levied at the rate of 8% on employment income of up to USD 10,400 and at the rate of 12% on the excess.
For individuals whose income does not exceed USD 5,200 per year, an annual income of USD 1,040 is exempt from tax.
Payroll tax is withheld by the employer and is paid every four weeks.

gsl.org · marshall islands

Withholding Tax

No withholding tax is levied on dividends, interest, or royalties.
The income of non-residents from services provided to clients within the Marshall Islands is subject to withholding tax at the rate of 10%.

gsl.org · marshall islands

Sales Tax

Local authorities levy sales tax at the rates of 2% to 4%.

Social Security Contributions

Businesses make quarterly social security and health insurance contributions on earnings of up to USD 5,000 per quarter.
The contribution rates are 8% for the employee (withheld by the employer) and 8% for the employer.
Quarterly health insurance contributions are paid by businesses at the rate of 3.5%.

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