On June 17, 2019, the President of Palau, Tommy E. Remensegau Jr., signed into law a bill that increases the fees charged to foreign yacht owners and cruise ships entering Palau waters.

Published 5 years ago

The new fees relate to all foreign-owned vessels entering Palau waters including private yachts, cruise ships, dive operators and charter yachts who provide cruises and accommodation on dive trips.

Previously private vessels paid a vessel entry permit fee of $50 on arrival in Palau and $50 for each subsequent extension. However, the new entry permit fees are substantially more than this:

• For example, a private yacht of less than 40 ft will pay an initial tax of US$250 for 30 days, $1000 for the second 30 days and $2000 for the subsequent 30 days.
• For private yachts over 40 ft but less than 90 ft, the tax is US$500 for the first 30 days, then $1000 for the second 30 days and $2000 for the subsequent 30 days.
• Private yachts 90ft or more, but less than 150 ft in length, shall pay an initial tax of $750 for a visit lasting 30 days or less, the cost of the first renewal shall be $500 and a second renewal shall be $250.
• Private yachts 150ft or more in length shall pay an initial tax of $1000 for a visit lasting 30 days or less, the cost of the first renewal shall be $500 and a second renewal shall be $250.

The Bill also states that the tax structure shall be incrementally implemented so that in the first year following the effective date of the new Act, the Republic will assess 50% of the tax amounts; in the second year the tax will be assessed at 75% and in the third year the Republic will assess the full tax amount.

A spokesman for the Bureau of Customs in Palau said the new fee structure would come into effect 90 days from the date of the bill being signed by the President of Palau – which occurred on June 17, 2019.

Therefore the effective date should be around mid-September 2019.  The Bureau of Customs will issue the permit and collect the fees when vessels arrive in Palau. Fees can be paid by either cash or credit card.

President Tommy E. Remensegau Jr said the new law “would align Palau’s tax structure with the normative market tax structure and ensure that we receive our fair share from those profiting off Palau’s natural beauty.”

For more information, the bill can be read on the Palau Government website.

If you are intending to visit Palau, Noonsite suggests you contact Palau Customs in advance to confirm the tax amount you will pay.