A sovereign state in free association with the United States (Compact of Free Association).
Progressive for resident companies: 0.8% on the first USD 10,000 of income, 3% above that; non-resident companies not conducting business within the Marshall Islands are exempt from corporate income tax entirely, making it a popular offshore incorporation jurisdiction.
The Marshall Islands does tax wages and salaries, via the Wages and Salaries Tax (WST) under the Income Tax Act 1989 (48 MIRC Ch.1), most recently amended by Nitijela Bill No. 103 / P.L. 2026-68 (passed March 16, 2026). The current structure is progressive: 8% on the first USD 10,400 of annual wages (prorated to roughly USD 200/week or USD 867/month), stepping up to 12% on wages above that threshold. A separate, lower 5% rate applies specifically to US contractor personnel wages and salaries. The tax is withheld by the employer and remitted to the Secretary of Finance/Revenue and Taxation. The commonly repeated claim on offshore-company-formation marketing sites that the Marshall Islands has "0% personal income tax" refers only to the entity-level exemption for non-resident domestic entities (IBCs not conducting business locally) - it does not describe the separate wage tax that applies to actual employees and residents, and should not be read as a statement about personal income tax generally.
0% - no VAT.
A company is a Marshall Islands "resident" for tax purposes if it conducts business within the Marshall Islands; non-resident domestic entities (the standard offshore/IBC structure) are those incorporated under Marshall Islands law but not conducting business there, and are taxed only if they earn Marshall Islands-source income. Marshall Islands entities are also subject to economic substance requirements intended to ensure taxation occurs where genuine business activity takes place, waivable on proof of tax residency elsewhere. No individual day-count residency test was confirmed from a primary source this session (one lower-quality source references a 183-day US-resident-linked threshold, but this was not verified against Marshall Islands legislation).
The Marshall Islands has no CFC regime of its own. This does not eliminate CFC exposure for a foreign owner - most EU member states, the UK, Australia, and Canada (among others) have CFC legislation in their own jurisdictions that can attribute a Marshall Islands entity's undistributed income directly to the controlling individual or entity, taxable in the owner's home country regardless of Marshall Islands law.
No statutory thin capitalization or interest-limitation ratio was identified in available sources.
No domestic FBAR/Form 8938-equivalent requiring Marshall Islands residents to self-report their own foreign accounts was identified. On the institutional side, the Marshall Islands signed the OECD's Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information (CRS MCAA) on October 29, 2015, with automatic exchange beginning in September 2018 - so Marshall Islands financial institutions do participate in CRS reporting to other jurisdictions' tax authorities. Separately and independently of Marshall Islands law, US citizens and Green Card holders with Marshall Islands accounts remain obligated to file FinCEN Form 114 (FBAR) once aggregate foreign accounts exceed USD 10,000, and potentially Form 8938 - this US obligation applies regardless of the Marshall Islands' own domestic reporting regime, and is a materially separate question from the entity-level CFC and economic substance points above.
The Marshall Islands has no comprehensive double tax agreements. Its international tax-cooperation network consists of 13 Tax Information Exchange Agreements (TIEAs) - narrower information-sharing instruments, not treaties that provide double-tax relief - with Australia, Denmark, the Faroe Islands, Finland, Greenland, Iceland, Ireland, Korea, the Netherlands, New Zealand, Norway, Sweden, and the United States, per GSL's specialist tax-law profile of the jurisdiction. The Marshall Islands has not signed the OECD's Multilateral Convention (MLI). A separate, lower-quality company-formation source's vague reference to "14 Tax Treaties" (with no named partners or supporting detail) does not hold up against GSL's specific, named, and independently checkable list, and is not relied on here.