13 Dec 2011

CNMI business group wants IRS to retract exemption decision

5:59 pm on 13 December 2011

The Saipan Chamber of Commerce is seeking the retraction of a decision that Filipino workers in the Commonwealth of the Northern Marianas are no longer exempt from paying Federal Insurance Contribution Act taxes.

The move came as a result of the federalization of local immigration.

The territorial government also wants continuous FICA tax exemption for Filipino, as well as Korean foreign workers.

The Chamber of Commerce president Douglas Brennan has written to the Delegate Gregorio Kilili Sablan, asking him to speak with the U.S. Department of Treasury's internal revenue service, to see whether the ruling can be reversed.

He says paying such taxes is a burden on both employees and employers at a time when the CNMI economy is in a bad state.