INDIVIDUAL TAXATION

Nonresidents are taxed on their income from CNMI sources.

INCOME TAX

Income tax is generally levied at progressive rates.

INCOME TAX FOR NON-RESIDENTS
TAXABLE INCOME (US$)	TAX RATE
Up to US$15,650	10%
US$15,650 - US$63,700	15%
US$63,700 - US$128,500	25%
Over US$128,500	30%
Source: Global Property Guide

RENTAL INCOME
Rental income is taxed at progressive rates. Taxable income is computed by deducting income-generating expenses (management fees, maintenance and repairs, etc.) and depreciation costs from the gross income. Residential properties are depreciated over a period of 27.5 years.

Gross Revenue (Turnover) Tax

This tax is assessed on the net income but it is credited against income tax. The tax depends on the annual turnover and is not a graduated tax.

GROSS REVENUE TAX (TURNOVER) TAX
ANNUAL TURNOVER, (US$)	TAX RATE
Up to US$5,000	0%
US$5,000 - US$50,000	1.5%
US$50,000 - US$100,000	2.0%
US$100,000 - US$250,000	2.5%
Source: Global Property Guide

CAPITAL GAINS TAX

All income from the islands earned by nonresidents which are not effectively connected with a business is taxed at a flat rate of 30%.

However, if the taxpayer files an income tax return in the islands, he is entitled to 100% rebate on this tax. The gains are then subject to the local territorial income tax. The applicable tax rates depend on the status of the taxpayer and are subject to the changes in the US Internal Revenue laws (see above).