Verified Facts
The tax rates in American Samoa range from 4% to 15% for individual income tax, with a corporate tax rate of 21% and no Value-Added Tax (VAT) or Goods and Services Tax (GST) implemented.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
American Samoa, as a territory of the United States, follows a territorial taxation system, where only income earned within the territory is subject to taxation. This means that individuals and businesses are not taxed on their worldwide income, but only on the income derived from sources within American Samoa. The residency rules for tax purposes in American Samoa are based on the individual's physical presence in the territory, with a minimum of 183 days required to be considered a resident for tax purposes.
The tax system in American Samoa is relatively simple, with a focus on income tax and corporate tax. The territory does not have a VAT or GST, and the tax rates are generally lower compared to other countries. The tax year in American Samoa follows the calendar year, from January to December, and the territory has a limited tax treaty network, with only one country, the United States, having a tax treaty in place.
Personal Income Tax
| Income Bracket (USD) | Tax Rate |
|---|---|
| 0 - 5,000 | 4% |
| 5,001 - 10,000 | 6% |
| 10,001 - 20,000 | 8% |
| 20,001 - 50,000 | 12% |
| 50,001 and above | 15% |
| The personal income tax rates in American Samoa are progressive, with five income brackets and tax rates ranging from 4% to 15%. Individuals are allowed to claim deductions and allowances for certain expenses, such as charitable donations and mortgage interest. The filing requirements for personal income tax in American Samoa are relatively straightforward, with individuals required to file a tax return by April 15th of each year. |
Corporate & Business Tax
- The corporate tax rate in American Samoa is 21%, applicable to all businesses operating in the territory.
- Small businesses, defined as those with annual gross receipts of $100,000 or less, are eligible for a reduced tax rate of 15%.
- American Samoa has a free trade zone, which offers tax incentives and other benefits to businesses that operate within the zone.
- Businesses are required to register with the American Samoa Department of Revenue and obtain a tax identification number before commencing operations.
- The registration process typically involves submitting an application and providing supporting documentation, such as a business license and articles of incorporation.
VAT / Sales Tax
- American Samoa does not have a VAT or GST, which means that businesses do not need to charge or collect sales tax on their sales.
- However, some businesses may be required to collect a gross receipts tax, which is a tax on the gross receipts of a business.
- The gross receipts tax rate is typically 0.5% to 1.5%, depending on the type of business and the amount of gross receipts.
- Certain businesses, such as those in the tourism industry, may be eligible for a reduced gross receipts tax rate or an exemption from the tax altogether.
For Expats & Foreign Workers
- Expats and foreign workers are subject to the same tax rules as residents of American Samoa, with the exception of certain tax credits and deductions that may be available to them.
- To be considered a tax resident in American Samoa, an individual must be physically present in the territory for at least 183 days in a calendar year.
- American Samoa has a double taxation treaty with the United States, which helps to avoid double taxation on income earned by individuals and businesses.
- Expats and foreign workers may be required to pay social security taxes on their income, depending on their country of origin and the terms of their employment contract.
- The remittance rules in American Samoa require individuals to report and pay tax on income earned outside of the territory, even if it is not physically brought into the territory.
- Expats and foreign workers may be eligible for a foreign earned income exclusion, which allows them to exclude a certain amount of foreign-earned income from their taxable income.
Crypto & Investment Income
- Investment income, such as dividends and interest, is subject to taxation in American Samoa, and is typically taxed at the individual's marginal tax rate.
- Cryptocurrency is considered a type of property for tax purposes, and gains or losses from the sale or exchange of cryptocurrency are subject to taxation as capital gains.
- The tax treatment of cryptocurrency is similar to that of other types of property, with gains or losses calculated based on the difference between the sale price and the basis of the cryptocurrency.
- Individuals may be required to report and pay tax on dividends and other types of investment income, depending on the source of the income and the individual's tax residency status.