The 60-second version
Micronesia exit needs employer tax certificate and Division of Revenue compliance letter. I export social security statements, close USD account, wire to NRE, and map RNOR for compact and fisheries payroll.
Division of Revenue clearance before closing Pohnpei payroll account
FSM states tax residents on employment income — obtain salary tax reconciliation and state tax clearance before departure.
Compact-funded government, fisheries, and aviation payroll common — retain employer settlement; economy uses USD.
Palau neighbour: Palau guide for Koror parallel exit.
FSM lanes
| Item | FSM | India |
|---|---|---|
| State tax | Ends on exit | Residency tax |
| Social sec. | Export stmt | Form 67 credit |
| USD bank | Close | NRE wire |
| Work permit | Cancel | OCI/resident |
FSM exit
Settlement
Employer final letter.
Tax cert
State clearance.
SS export
Contribution PDF.
Wire USD
SWIFT to NRE.
ITR
Overlap-year filing.
Flow
FSM kit
- Tax ID.
- Salary cert.
- SS PDF.
- SWIFT receipt.
- Passport stamps.
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State variation
Pohnpei, Chuuk, Yap, and Kosrae each have tax offices — obtain clearance for your work state.
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Partial-year Pohnpei income?
Yes — declare FSM-source in India ITR.
RNOR?
Foreign income may be exempt if RNOR conditions met.
Chuuk posting?
Same FSM process — retain state employer letter.
Form 67?
If overlap-year double tax on salary.
Marshall hub?
Marshall Islands guide if transiting Majuro.
Remote work?
India taxes from return date as resident.
Your country's rules are the starting point, not the finish line.
Tax exits, pension continuity, banking notifications — the India side has its own rules too. Get both sides clear.