Verified Facts
The tax rates in Northern Mariana Islands range from 0% to 19% for personal income tax, with a corporate tax rate of 19% and no Value-Added Tax (VAT) or Goods and Services Tax (GST).
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
The Northern Mariana Islands, a territory of the United States, has a territorial tax system, meaning that only income earned within the territory is subject to tax. This is in contrast to a worldwide tax system, where income earned anywhere in the world is subject to tax. To be considered a resident for tax purposes, an individual must have a physical presence in the Northern Mariana Islands for at least 183 days in a calendar year. Residents are taxed on their worldwide income, but only if they are also citizens of the United States.
The tax system in the Northern Mariana Islands is based on the US tax code, with some modifications to accommodate the territory's unique circumstances. The tax authority, the Department of Finance, is responsible for administering the tax laws and collecting taxes. The Northern Mariana Islands has a relatively simple tax system, with few tax rates and minimal tax credits. However, the tax laws can be complex, and taxpayers are advised to seek professional advice to ensure compliance.
Personal Income Tax
| Income Bracket (USD) | Tax Rate |
|---|---|
| 0 - 10,000 | 0% |
| 10,001 - 20,000 | 5% |
| 20,001 - 50,000 | 10% |
| 50,001 - 100,000 | 15% |
| 100,001 and above | 19% |
| Personal income tax rates in the Northern Mariana Islands are relatively low, with a top rate of 19%. Taxpayers are allowed to claim deductions for mortgage interest, charitable donations, and medical expenses, among others. Tax returns must be filed by April 15th of each year, and taxpayers can file electronically or by mail. The tax authority also offers a tax withholding system, where employers withhold taxes from employees' wages and remit them to the government. |
Corporate & Business Tax
- The corporate tax rate in the Northern Mariana Islands is 19%, which applies to all businesses, regardless of size or type.
- Small businesses may be eligible for tax incentives, such as reduced tax rates or tax credits, if they meet certain criteria.
- The Northern Mariana Islands has a free trade zone, where businesses can operate with minimal taxes and regulations.
- Businesses must register with the Department of Finance and obtain a tax identification number before commencing operations.
- The tax authority offers a tax amnesty program, which allows businesses to settle outstanding tax liabilities without penalty or interest.
VAT / Sales Tax
- The Northern Mariana Islands does not have a VAT or GST, but it does have a gross receipts tax, which applies to certain businesses, such as hotels and restaurants.
- The gross receipts tax rate is 4%, which is applied to the total revenue of the business.
- Some businesses, such as non-profit organizations and small businesses, may be exempt from the gross receipts tax.
- The tax authority also offers a tourist refund scheme, which allows tourists to claim a refund on certain purchases.
For Expats & Foreign Workers
- Expats and foreign workers are considered non-resident aliens if they are not physically present in the Northern Mariana Islands for at least 183 days in a calendar year.
- Non-resident aliens are only taxed on income earned within the Northern Mariana Islands, and are not eligible for tax deductions or credits.
- The Northern Mariana Islands has a tax treaty with the United States, which provides relief from double taxation for US citizens and residents.
- Expats and foreign workers must obtain a tax identification number and file a tax return if they earn income within the Northern Mariana Islands.
- The tax authority also offers a social security program, which provides benefits to eligible workers.
- Remittances to foreign countries are subject to withholding tax, which is applied at a rate of 10%.
Crypto & Investment Income
- Investment income, such as dividends and interest, is subject to tax at the individual's tax rate.
- Capital gains are included in income and taxed at the individual's tax rate.
- Cryptocurrency is considered property for tax purposes, and gains from the sale of cryptocurrency are subject to tax.
- The tax authority has not issued specific guidance on the taxation of cryptocurrency, and taxpayers are advised to seek professional advice to ensure compliance.