Corporate Tax in Nauru

Nauru is a well-known tax haven with a 0% corporate income tax (CIT) rate. There is no tax on corporate profits, no branch profits tax, and no compliance obligations for businesses operating in or from Nauru.

Corporate Income Tax Rate

The corporate income tax rate in Nauru is 0%. This applies to all companies, regardless of size, industry, or ownership structure. There are no reduced rates, no brackets, and no thresholds — all profits are tax-free.

Taxable Income

Since there is no corporate tax, there is no concept of taxable income. Companies are not required to compute taxable profits, file tax returns, or maintain tax-specific accounting records.

No Filing Requirements

There are no corporate tax filing requirements in Nauru. Companies are not required to:

• File annual corporate tax returns
• Submit financial statements for tax purposes
• Make advance tax payments
• Withhold tax on payments
• Register for corporate tax purposes

Tax Incentives

Since the standard rate is already 0%, there are no special tax incentives or reduced rates. All businesses automatically benefit from the zero-tax regime.

International Taxation

Nauru does not tax foreign-source income of resident companies. There is no controlled foreign company (CFC) legislation, no thin capitalization rules, and no transfer pricing documentation requirements. Nauru has no double tax treaties with any country.

Tax Haven Status

Nauru is classified as a tax haven jurisdiction. While this provides significant tax advantages, businesses should be aware of:

• International transparency requirements and automatic exchange of information
• Substance requirements in the home country of beneficial owners
• Potential reputational considerations
• Anti-money laundering compliance obligations

Business Considerations

Despite the zero-tax environment, companies operating in Nauru must comply with:

• Company registration and annual return filing with the Registry of Companies
• Business license requirements
• Employment and labor laws
• Anti-money laundering regulations