The President has signed a legislation that seeks to invest in a skilled Palauan workforce.
This newly approved legislation calls on the creation of a vocation certification program at the Palau Community College, side effects and to also create a tax incentive for businesses that hires vocationally certified citizens.
This legislation was among one of the first bills introduced by the President to the Olbiil Era Kelulau.
The main purpose of the legislation is to put focus on hiring of locals in skilled trades that are normally dominated by foreign workers.
In providing incentive for businesses, price the legislation also provided an amendment to the tax code allowing businesses that hires Palauan citizens with a vocational certificate to double the amount of salary claimed for deduction before the Gross Revenue Tax is applied.
However according to the legislation, case the tax incentive is only designed to sunset 15 years after it goes into effect to evaluate its effectiveness and whether it continues to be necessary to promote the hiring of Palauan citizens.
In signing the “Skilled Palauan Workforce Investment Act” on April 24, 2014, the President expressed in his letter to the OEK, “It is my hope, as I am sure that it is the hope of the Olbiil Era Kelulau, that the need for a financial incentive to hire Palauan citizens will, in fact, end and that Palauans will come to comprise a majority in the private section in year 2025.”
This act was signed into law along with three other legislations that including the amendment providing for an interim special prosecutor.
