Income tax in Papua New Guinea
Taxation Researcher | November 15, 2020
INDIVIDUAL TAXATION
Residents are taxed on their worldwide income. Married couples are taxed separately.
INCOME TAX
Income is classified according to the following categories: (1) employment income, (2) business income, (3) rents, (4) interests, and (5) dividends.
INCOME TAX 2020 |
||
| TAXABLE INCOME, PGK (US$) | ||
| Up to 12,500 (US$3,720) | 0% | |
| 12,500 – 20,000 (US$5,952) | 22% | |
| 20,000 – 33,000 (US$9,821) | 30% | |
| 33,000 – 70,000 (US$20,333) | 35% | |
| 70,000 – 250,000 (US$74,405) | 40% | |
| Over 250,000 (US$74,405) | 42% | |
| Source: Global Property Guide | ||
INCOME TAX 2019 |
||
| TAXABLE INCOME, PGK (US$) | ||
| Up to 10,000 (US$2,976) | 0% | |
| 10,000 – 18,000 (US$5,357) | 22% | |
| 18,000 – 33,000 (US$9,821) | 30% | |
| 33,000 – 70,000 (US$20,333) | 35% | |
| 70,000 – 250,000 (US$74,405) | 40% | |
| Over 250,000 (US$74,405) | 42% | |
| Source: Global Property Guide | ||
RENTAL INCOME
Rental income is taxed at the progressive income tax rates. Income-generating expenses are deductible when calculating the taxable income.
CAPITAL GAINS
Capital gains unrelated to business-making activities are not taxed in Papua New Guinea.
Capital gains related to business-making activities are taxed at the standard income tax rates.
PROPERTY TAXATION
There are no property taxes in Papua New Guinea.
CORPORATE TAXATION
INCOME TAX
Income and capital gains earned by resident companies are taxed at a flat rate of 30%. Income-generating expenses are deductible when calculating taxable income.
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