TWO MILLION US DOLLARS OF REVENUE REPORTED BY THE DEPARTMENT OF FINANCE
Press Release #0710-09 (in Replacement of Press Release #0610-13
which has been Retracted by the FSM Information Services)
Palikir, Pohnpei – FSM Information Services
July 7, 2010

Palikir, Pohnpei: July 7, 2010 -  A report issued by the FSM Department of Finance and Administration (the “Department of Finance”) indicates that for the period from 2005, to May 25, 2010, a total of approximately U.S. $2,000,000.00 of corporate income taxes has been collected by the Department of Finance from 14 Major Corporations registered with the FSM Registrar. 
 
To continue the stimulation of registrations of overseas corporations in the FSM, Congress approved, during its Fourth Regular Session in May 2010, and President Mori signed into law, a note-worthy amendment to Section 321 of the FSM Tax Code: lowering the current corporate tax rate from 25.5% to 21%.  The new FSM tax rate of 21% will allow the FSM to remain competitive and still be above what is deemed a tax haven threshold in other foreign countries.
 
President Mori is considering investing part of this revenue generated by these corporate registrations, into the FSM (non-Compact) Trust Fund, Social Services, MiCare Health Insurance and other priority programs at State and National level. 

In the wake of the FSM Registrar’s success in producing revenue from its corporate registry, especially from the captive insurance licensing regime; the government is eager to pursue other business opportunities, such as an International Open Ship Registry, to create other sources of revenue for FSM.  The President’s Administration is striving to create revenue sources to progressively replace the decreasing amounts received by the FSM under the Amended Compact.
      
For more information, please contact the FSM PIO at 320-2548 or by e-mail at fsmpio@mail.fm.