Investing in the Marianas
Taxes
The Northern Mariana Islands are a self governing
commonwealth of the United States of America.
Most imposed taxes are administered and enforced
by the CNMI Division of Revenue and Taxation and
are payable to the CNMI Treasury. Under the
Covenant to establish a Commonwealth of the
Northern Mariana Islands in political union with the
United States of America, U.S. public law 94-241,
the income tax laws of the United States are
enforced in the CNMI as a local territorial income
tax (NMTIT). Taxes imposed under the NMTIT
are administered and enforced pursuant to the
mirrored-income tax provisions of the U.S. internal
revenue code. In interpreting the NMTIT, the following are
generally treated as authoritative interpretations of the
NMTIT: U.S. federal cases including tax court cases, IRS revenue
ruling revenue procedures, and treasury regulations.
In addition to the mirrored-incomc tax, the covenant
authorizes the CNMI to impose other taxes, a wage
and salary tax, earnings tax, business gross revenue
tax, and a general excise tax. Pursuant to the
covenant and CNMI law, every person subject to
the NMTIT is entitled to a rebate with respect to
their NMTIT tax liability in amounts ranging from
50-90% of the tax paid.
TAX TABLE FOR WAGE, SALARY AND EARNINGS TAX COMPUTATION
|
|
FROM |
|
TO |
RATE |
|
|
FROM |
|
TO |
RATE |
|
a) |
-0- |
- |
1,000.00 |
-0- |
|
|
|
|
|
|
|
b) |
1,000.01 |
- |
5,000.00 |
2.00% |
|
f) |
22,000.01 |
- |
30,000.00 |
6.00% |
|
c) |
5,000.01 |
- |
7,000.00 |
3.00% |
|
g) |
30,000.01 |
- |
40,000.00 |
7.00% |
|
d) |
7,000.01 |
- |
15,000.00 |
4.00% |
|
h) |
40,000.01 |
- |
50,000.00 |
8.00% |
|
e) |
15,000.01 |
- |
22,000.00 |
5.00% |
|
i) |
50,000.01 |
- |
and over |
9.00% |
| REBATE TABLE: NON-CORPORATE TAXPAYER: |
|
IF REBATE BASE IS: |
|
THE REBATE AMOUNT IS: |
|
EXAMPLE: |
|
|
Not over $20,000 |
|
90% of the rebate base |
|
Rebate base X 90% |
|
|
|
|
|
|
|
|
|
$20,000-$100,000 |
|
$18,000 plus 70% of the rebate base over $20,000 |
|
Rebate base - $20,000 X 70% + $18,000 |
|
|
|
|
|
|
|
|
|
Over $100,000 |
|
$74,000 plus 50% of the rebate base over $100,000 |
|
Rebate base - $100,000 X 50% + $74,000 |
|
|
|
|
|
|
|
|
| REBATE TABLE: CORPORATE TAXPAYER: |
|
IF REBATE BASE IS: |
|
THE REBATE AMOUNT IS: |
|
EXAMPLE: |
|
|
Not over $20,000 |
|
90% of the rebate base |
|
Rebate base X 90% |
|
|
|
|
|
|
|
|
|
$20,000-$100,000 |
|
$18,000 plus 70% of the rebate base over $20,000 |
|
Rebate base - $20,000 X 70% + $18,000 |
|
|
|
|
|
|
|
|
|
Over $100,000 |
|
$74,000 plus 50% of the rebate base over $100,000 |
|
Rebate base - $100,000 X 50% + $74,000 |
|
|
|
|
|
|
|
|
|
