What is the tax rate in Papua New Guinea?

What is taxation in PNG?

Residents of Papua New Guinea are taxed on their worldwide income. A foreign tax credit may be available to offset foreign tax paid against PNG tax payable (see the Foreign tax relief and tax treaties section). Non-residents are generally taxed only on their PNG-sourced income.

Is working in PNG tax free?

If you are treated as a Papua New Guinea resident for tax purposes and your employer directly pays your children’s primary and secondary education fees, this amount is exempt from tax. If your employer provides these benefits for you as cash allowances, they will not be exempt.

Is housing allowance taxable in PNG?

Concessional benefits Housing allowances and housing are taxable at notional values as set out in the following table. The provision of a motor vehicle to an employee is taxable to the employee.

What kind of tax do you pay in Papua New Guinea?

Companies that are not resident in PNG are only required to remit tax on income sourced in PNG. A non-resident’s PNG-sourced passive income, including dividends, interest and royalties, is generally only subject to withholding tax (WHT).

Can a PNG company be tax resident of another country?

Incorporation test: A company incorporated in PNG is automatically regarded as a PNG tax resident. However, the law of another country and a relevant double taxation agreement (DTA) may result in a company also being treated as a resident in another country.

How are project agreements used in Papua New Guinea?

For example: The use of project agreements to create special tax arrangements for individual projects has encouraged a wide range of investors to seek a growing list of additional tax concessions, even when forms of tax relief are already provided by tax law for investors in the type of business involved;

What kind of legal entity does PNG have?

A number of different types of legal entities are available to those looking to do business in PNG. These include incorporating a PNG company (a “subsidiary”), registering as an overseas company in PNG (a “PNG branch”), entering into a partnership agreement, and establishing a trust.