PALIKIR, Pohnpei—The Government of the Federated States of Micronesia (FSM) has recently received two corporate tax payments through MRA Advisors Inc. The result of the payments is that the FSM will be receiving $35,700,000 of which half will automatically be transferred into the FSM Trust Fund per Public Law 20-130. The other half will be deposited into the General Fund of the FSM.
The FSM prides itself on being flexible and responsive to evolving global conditions and is a well-known location for establishing offshore corporations in accordance with OECD Global Forum standards. MRA Advisors Inc., specializes in assisting foreign corporations or individuals, and captive insurance companies, establish subsidiaries in the FSM. Ever since the FSM began its partnership with MRA Advisors Inc., more than 170 Japanese-owned major corporations have been registered in the FSM.
The practical effect for FSM citizens is that the partnership between the FSM and MRA Advisors Inc., results in substantial revenue that directly impacts public projects, such as the construction and maintenance of infrastructure to education and youth-based programming, as well as substantial increases to the FSM Trust Fund (which exists to ensure the continuity of essential services regardless of external environmental and geopolitical factors).
On September 13th, 2022, His Excellency David W. Panuelo received a report on the FSM Trust Fund as of July 31st, 2022. In that report, the Secretary of Finance & Administration advised President Panuelo that the FSM Trust Fund is presently approximately $357,375,960. Presuming no other changes or amendments, the infusion of $17,850,000 from corporate tax payments will increase the FSM Trust Fund to approximately 375 million dollars. Citizens may appreciate recalling that the FSM Trust Fund is distinct from the Compact Trust Fund, the latter of which has a present value of approximately one billion dollars.
The President’s letter to the Speaker of the FSM Congress on the infusion of corporate tax payments to the FSM Trust Fund and the General Fund may be found here: https://gov.fm/files/Announcements/October_10_2022_-_Letter_to_Speaker_Simina_re_-_MRA_deposits.pdf
