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Palau’s Western Union Money Transfer Office has yet to apply the new remittance tax to customers remitting funds.
The new Remittance Tax, symptoms which became effective on October 1st as announced by the tax office, drug required all remittance businesses in Palau to apply a 4% tax on all non-Palauan citizens.
But CTSI Logistics Palau’s Western Union agent has yet to apply the tax as per instruction from its management.
In an email to OTV, Susan Tran, Western Union’s Business Development Manager for the Pacific Islands Oceania region declined to comment on the matter.
A source argued that the tax was to take effect on November 1st not October 1st.
According to the law signed by President Remengesau Jr. on April 30th, the tax “will be effective six months after the effective date of this Act”, which indicates that the 6-months would be up on October 31st, with an effective date on November 1st.
Tax Chief Ricardo Bawsoch confirmed to OTV that the effective date of the tax is in fact November 1st.
He said the Office made an error in its public announcement dated on September 9th, announcing the effective date of the tax on October 1st.
He says a team has been put together to contact all remittance companies.
Asked if any companies have collected the tax since October 1st, he said he’s not certain.
If any companies have collected the 4% tax since October 1st, the national government would need to return the money back.
