Marshall Islands Parliament Passes Bill to Amend Income Tax Act

The Marshallese Parliament (Nitijela) March 16 passed Bill No. 103 P.L. 2026-68, to amend Income Tax Act 1989 concerning taxation of wages and salaries. The bill includes measures to: 1) impose a general 8 percent individual income tax rate on the first US$10,400 of employee wages and salaries, prorated at US$200 weekly or approximately US$867 monthly, and increased 12 percent on the amount exceeding US$10,400; 2) impose a 5 percent individual income tax rate on U.S. contractor personnel wages and salaries; 3) apply the general 8 percent and 12 percent rates to U.S. citizens, nationals, or permanent resident aliens who ...