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NAURU
We have a team of professionals to help you with all your business needs, so that you can focus on your business expansion in Nauru — one of the world’s smallest nations but with unique opportunities for strategic investors.
WHY NAURU?
• Strategic Pacific Location: Positioned in the central Pacific, Nauru offers a foothold into Oceania and potential access to regional markets, with strong ties to Australia and neighboring island economies.
• Resource-Driven History & Diversification Push: Once one of the richest countries per capita due to phosphate mining, Nauru is actively diversifying its economy towards financial services, tourism, renewable energy, and fisheries.
• Global Partnerships: Nauru has forged close links with Australia, Taiwan, and multilateral institutions like the Asian Development Bank and World Bank — bringing opportunities for projects funded by international aid and infrastructure development.
• Compact, Streamlined Governance: With a population under 12,000, the government and regulatory bodies are highly centralized, enabling direct access to decision-makers and fast-tracking approvals in key projects.
ADVANTAGES
Attractive Tax Environment
Nauru has no VAT, GST, or capital gains tax and a relatively simple corporate tax structure compared to many Pacific peers.
Investor-Friendly Policies
Tax holidays, duty exemptions, and other investment incentives are provided for projects in strategic areas like tourism, fisheries, IT, and renewable energy.
No Withholding Taxes
Dividends, royalties, and interest payments are generally free of withholding, making Nauru a tax-efficient jurisdiction for cross-border investors.
Strategic Development Areas
- Tourism & Real Estate: Untapped eco-tourism potential with pristine coastlines.
- Fisheries: Rich marine resources in Nauru’s Exclusive Economic Zone.
- Renewables & Infrastructure: Opportunities in solar energy, water management, and housing — often backed by donor funds.
English as Business Language
English is widely used in government, business, and legal systems, reducing entry barriers for international investors
SIMPLE TAX REGIME
Nauru maintains a straightforward and low-burden tax regime, with most taxes being corporate-focused and few complexities for personal income.
TAX SLABS
Corporate Income Tax (CIT)
- Resident companies (revenue ≤ AUD 15 million): 20% on net profits
- Resident companies (revenue > AUD 15 million): 25%
- Non-resident companies or foreign-controlled entities: 25%
- Small Business Tax (SBT)
- For non-resident small operators with gross revenue ≤ AUD 250,000 → flat 2.5% of turnover
- Non-Resident Tax (NRT)
- 20% withholding equivalent on certain payments to non-residents (interest, royalties, insurance premiums)
INCOME TAX RATES (PERSONAL)
- Employment & Services Tax (EST): 10% on income from employment and services.
- Threshold System: Some regimes exempt the first AUD 110,000 of employment income, with 20% tax applying beyond that.
- No Capital Gains Tax on individuals.
Insight: For expatriates and foreign employees, the absence of broad-based income tax makes Nauru highly cost-effective from a personal taxation standpoint.
UNIFIED TAX ENVIRONMENT
Unlike many jurisdictions, Nauru does not have multiple overlapping tax layers. The tax administration is centralized through the Nauru Revenue Office, making compliance straightforward
CORPORATE TAX RATES
- Standard CIT: 20–25% depending on company size and ownership
- SBT:5% on revenue (for small foreign businesses)
- Non-Resident Entities: 25%
Other Levies: Employment and services tax at 10%; no VAT, GST, or capital gains tax
NAURU COMPANIES
- Legal System: Follows common law principles, with business incorporation aligned to international standards.
- Incorporation Requirements:
- At least one local director is typically required
- Tax Identification Number (TIN) registration with the Revenue Office
- No minimum capital requirements for most small enterprises
- Foreign Ownership: Allowed in most sectors, though land ownership is restricted and may require a local partner.
- Banking & Finance: Limited domestic banking options, but international transactions can be conducted through correspondent banking networks.
- Sector Incentives: Strong government support for tourism, fisheries, renewable energy, and IT-enabled services.
INSIGHTFUL TAKEAWAYS
- Nauru’s small domestic market limits local demand, but the real opportunities lie in international projects — often funded by aid agencies or through strategic partnerships with Australia and regional bodies.
- The favorable tax environment makes it attractive for regional holding structures, although banking and infrastructure limitations may be a challenge for large-scale investors.
- Businesses targeting eco-tourism, sustainable fisheries, and renewable energy can leverage both tax incentives and international development financing.
Contact Us
Get in touch with the right people to get the right help in setting up your business in Nauru .
enquiries@chandrawatpartners.com.