Tax Example: Rent

May 17, 2016

Non-resident couple's joint monthly rental income1
Monthly Rental Income2 1,500 6,000 12,000
Annual Rental Income 18,000 72,000 144,000
Less: Expenses3 25% 4,500 18,000 36,000
= Taxable Income 13,500 54,000 108,000
Income Tax4
Up to PGK 18,000 22% 1,320 1,320 1,320
PGK18,000 - PGK 33,000 30% 1,500 1,500 1,500
PGK33,000 - PGK 70,000 35% 875 4,317 4,317
PGK70,000 - PGK 250,000 40% - 12,267 24,000
Over PGK 250,000 42% - - 10,360
Annual Income Tax Due 3,695 19,403 41,497
Tax Due as % of Gross Income 20.53% 26.95% 28.82%
Source:
GPG

DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on May 17, 2016.

Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 US$ = 3.00 PGK

3 Estimated values. Income-generating expenses are deductible when calculating taxable income.

4 Rental income earned by nonresident individuals is taxed at progressive rates.

INCOME TAX FOR NON-RESIDENTS

TAXABLE INCOME, PGK (US$)
TAX RATE
Up to 18,000 (US$6,000) 22%
18,000 - 33,000 (US$11,000) 30%
33,000 - 70,000 (US$23,000) 35%
70,000 - 250,000 (US$83,333) 40%
Over 250,000 (US$83,333) 42%
Source: Global Property Guide

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