The Palau government is working to finalize legislation for comprehensive tax reform in the country, which is to be implemented with effect from 1 January 2023. This includes transitioning from the current Gross Revenue Tax (GRT) to a VAT-type system known as the Palau Goods and Services Tax (PGST). The proposed rate of PGST is 10%, with rules for exempt and zero-rated supplies and a registration threshold of USD 300,000 in taxable supplies in a 12-month period. With the introduction of the P…