Federated States of Micronesia
Micronesia · FM · 0 treaties
Tax profile
| Corporate income tax | 21% |
| Withholding — dividends | 0% |
| Withholding — interest | 0% |
| Withholding — royalties | 0% |
| VAT / GST (standard) | n/a |
| Personal income (top rate) | 10% |
| Capital gains | n/a |
| Tax system | Territorial |
| Residency threshold | — |
| Exit / departure tax | No |
| CFC rules | No |
| Transfer pricing | None |
| Digital nomad visa | No |
| Digital services tax | none |
| Global minimum tax (Pillar 2) | None |
Tax residency
Easy to leaveWhat makes you a tax resident — and how hard it is to stop being one.
- No statutory tax residency tests for individuals; the national tax system taxes wages and salaries based on where the work is performed and where the employer is doing business, not on the worker’s residence status
- All wages and salaries earned by an employee attributable to services performed both within and outside the FSM in any calendar month are subject to FSM tax if paid by an employer doing business in the FSM
FSM’s national tax law does not define or use individual tax residency; liability is source- and employer-based, so ceasing work for an FSM‑based employer (or leaving such employment) effectively ends national wage tax exposure without any tail or domicile rules.