Income tax can be high in Papua New Guinea

November 13, 2017

INDIVIDUAL TAXATION

me from sources in Papua New Guinea. Married couples are taxed separately.

INCOME TAX

Income of nonresidents 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$23,333) 35%
70,000 - 250,000 (US$83,333) 40%
Over 250,000 (US$83,333) 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 nonresident companies are taxed at a flat rate of 48%. Income-generating expenses are deductible when calculating taxable income.

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