Taxation

The world-wide income of resident companies (whether citizen, national or foreign) and the Papua New Guinea (PNG) sourced income of non-residents is taxed. Resident companies are either incorporated or conducting business and whose management and control is in the country.

General corporate tax rates are:

  • resident companies – 30 per cent
  • non-resident companies – 48 per cent.

Personal income tax is applied on a sliding scale:

Taxable income (K)

Tax thereon (K)

Rates on tax on excess

Nil

Nil

22 per cent

18 000

3960

30 per cent

33 000

8460

35 per cent

70 000

21 410

40 per cent

250 000

93 410

42 per cent

All taxpayers must lodge their tax returns based on a calendar year end unless they have approval from the Taxation Office to adopt a substituted balance date.

There is a 10 per cent Value Added Tax (VAT) applicable to most goods imported into PNG and on any customs or excise duty paid on importation. VAT is collected as part of the normal procedure at the point of entry.

Further information on tax rates and personal income tax scales is available from the Internal Revenue Commission.