Treasurer issues update on tax claims after repeal of 2% wage tax

Pago Pago, AMERICAN SAMOA — ASG Treasurer Malemo L. Tausaga has provided an update for employers in American Samoa regarding the 2% wage tax, which was repealed through Fono legislation and signed into law on Apr. 8th by Gov. Lemanu Peleti Palepoi Sialega Mauga.

In a brief statement dated Nov. 17th and released yesterday, addressed to all employers in the territory, Malemo points out that the year 2021 is nearing its end and “we’re closer to a new year, new tax filing season and there’s been a change to our tax laws.”

He noted that the 2% wage tax was repealed by the Fono through legislation and signed into law by the governor.

The Treasurer explained that during the period of Jan. 1st to Apr. 8th 2021, the 2% wage tax was withheld by employers from their employees’ wages and has been submitted to the ASG Tax Office.

Malemo advised employers to include these withholdings in their employees’ American Samoa Wage and Tax Statement (W-2AS) as regular withholdings.

“No wage tax will be charged or levied for any period for Tax Year 2021, and depending on the taxpayers’ filings, they should expect to be refunded their 2% withholdings,” said Malemo, but didn’t give a time frame of when taxpayers are expected to get the refund from the ASG Tax Office.

Malemo’s statement comes at a time when some businesses have had ongoing discussions on how the 2% wage tax, which was paid by all wage earners in the territory, was going to be claimed or paid for tax year 2021.

Any questions or concerns should be directed to the Tax Office at 633-4181