How capital gains tax works in Marshall Islands
Marshall Islands does not currently impose a general standalone capital-gains tax on individuals. IMF analysis describes dividends, interest, and capital gains as generally outside the current tax base.
The absence of a personal CGT does not make every disposal irrelevant. A gain connected with a business carried on in the Republic can be relevant to the business gross-revenue tax, and local real-property, licensing, or transaction rules can still apply.
Income from leasing land is subject to a separate 3% tax on gross income under the Income Tax Act. That charge applies to lease income and should not be confused with a tax on the appreciation or sale of an asset.
Tax rates at a glance
- General capital gains tax
- 0%No standalone CGT
- Dividends, interest and capital income
- Generally untaxed
- Gross income from land leases
- 3%
- Business gross-revenue tax
- 3%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Long-term investorsShareholdersCrypto holdersMaritime asset ownersCross-border investors
Watch out for
- No Marshall Islands capital-gains tax does not prevent another country from taxing the disposal. The investor's residence, the company's residence, the asset location, and treaty or information-exchange rules can all change the result.
- A person trading or dealing in assets as a local business should not automatically treat every profit as a private capital gain. The national gross-revenue tax is based on business turnover and can apply without regard to accounting profit.
- Land and customary ownership rules are unusually important in the Marshall Islands. A tax answer for a lease, land interest, vessel, or company share can depend on legal title and transfer restrictions as well as tax classification.
- The IMF has recommended broadening the future income-tax base to include capital income, but that recommendation is not the same as a current enacted personal capital-gains tax.
Frequently asked questions
Does Marshall Islands tax capital gains?
There is no general standalone capital-gains tax in the current national system. IMF analysis says capital gains and most other capital income are generally untaxed, subject to business-activity and foreign-country rules.
Are crypto gains taxed in Marshall Islands?
No dedicated Marshall Islands crypto-gains tax has been identified in the current sources. Private investment gains are generally outside the current capital-income base, but business trading and the taxpayer's home-country tax rules can produce a different result.
Is land appreciation taxed in Marshall Islands?
No general national land-appreciation tax has been identified. Lease income is subject to a separate 3% gross-income tax, and property or transfer charges may exist under local rules.