The Palau President, Johnson Toribiong, has signed a bill into law making the area surrounding the national capitol in Ngerulmud a tax-free zone.
The Palau Island Times reports the tax free zone extends to two miles in all direction from the centre point of the dome of the Palau Parliament.
Any person who owns a business within the zone is exempt from payment of the taxes for a period of two years.
Any person who establishes a new business within the zone is to be exempt for a period of five years.
