Naoero (Nauru) Taxes for Individuals and Businesses

Naoero residents are liable to pay Naoero taxes on their income; however, the country’s high income tax threshold and absence of foreign income taxes allow residents to leverage the system for tax planning. Both individuals and companies registered in the Republic of Naoero avoid capital gains, inheritance, or wealth taxes.

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• Nauru tax system overview
• Nauru tax types
• Tax rules in Nauru
• Becoming a Nauru tax resident

Naoero Introduces Limited-Time Offer Until 31 December 2026

Naoero has launched a limited-time promotion under The Iruwa Initiative Special Project, reducing the overall cost of its Citizenship by Investment Program by up to 30 percent for single applicants and families until 31 December 2026. Additionally, the country has expanded its dependent eligibility criteria by removing age caps entirely for children and parents, as well as dropping the marriage restriction applied to children and siblings.

Overview of Naoero’s Tax System

Naoero’s tax system is simple and business friendly. The Naoero Revenue Office enforces tax legislation, and the country’s official currency is the Australian Dollar (AUD), which is used for daily transactions and to pay taxes. The first AUD $110,000 (USD $70,000) of employment income is tax-exempt, with a maximum tax rate of 20 percent.

Corporate taxes are categorized into three types: Small Business Tax (SBT), Business Profits Tax (BPT), and Non-resident Tax (NRT).

The corporate income tax threshold for resident companies starts at AUD $15 million (USD $9.62 million).

Types of Taxes in Nauru (Naoero)

The majority of tax levies in Naoero come from income-based taxation. Tax types and applicable rates are expressed in AUD, the country’s official currency.

Personal income tax

Employees in Naoero pay tax on their income.

Naoero imposes a service tax for self-employed individuals and non-tax residents providing services in Naoero. The Nauru service tax rate is charged at the same rate as employment income tax.

Corporate tax

In Naoero, corporate taxes are divided into three categories depending on business structure, revenue, and tax residence status.

Small Business Tax (SBT): SBT is a 2.5 percent gross revenue tax on non-resident individuals conducting business solely in Naoero who earn up to $250,000 annually.

Business Profits Tax (BPT): BPT is a rate-adjusted tax imposed on the income of an individual conducting business in Naoero whose annual earnings exceed $250,000. The tax rates come under four categories.

Non-resident Tax (NRT): Non-resident individuals who earn income from interest, royalties, or insurance premiums in Naoero pay a 20 percent NRT rate.

Naoero partnerships and trusts have a $250,000 tax-free threshold for each partner or beneficiary before a 20 percent tax rate applies.

Telecommunications Service Tax

The Naoero government imposes a special tax on companies that provide telecommunication services in Naoero. The Telecommunications Service Tax rate is 15 percent of the gross revenue earned from sales of telecommunication services.

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Naoero (Nauru) Tax Regulations

The Naoero Revenue Office is the government authority assigned to enforce tax regulations and support the country’s revenue system.

Companies and self-employed individuals who are residents or conducting business in Naoero must register with the Naoero Revenue Office. Entities must maintain accurate financial records for at least five years. Taxpayers must withhold and remit taxes monthly.

How to Pay Taxes in Naoero

Business and self-employed individuals registered in Naoero pay income taxes to the Naoero Revenue Office on the 15th of every month. Employers withhold taxes for their employees and file them using monthly remittance forms.

Companies liable to pay Business Profits Tax in Naoero must submit an annual tax return, which is typically within 90 days after the end of the fiscal year.

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How to become a tax resident in Naoero?

To be classified as a Naoero tax resident and open accounts at banks in Nauru, you generally need to reside in Naoero for at least 183 days per year, which requires a valid residence permit. Foreign nationals can obtain a residence permit by being employed by a Naoero company, marrying a Naoero citizen, or gaining Naoero (Nauru) citizenship by investment.