Tax on property income in Papua New Guinea
Effective Tax Rate on Rental Income |
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| Monthly Income | US$1,500 | US$6,000 | US$12,000 |
| Tax Rate | 20.88% | 27.21% | 29.07% |
| Click here to see a worked example | |||
| Source: Global Property Guide research |
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INDIVIDUAL TAXATION
me from sources in Papua New Guinea. Married couples are taxed separately.INCOME TAX
Income of nonresidents is taxed at progressive rates.
INCOME TAX FOR NON RESIDENTS 2020 |
|
| TAXABLE INCOME, PGK (US$) | TAX RATE |
| Up to 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$74,405) | 42% |
| Source: Global Property Guide | |
INCOME TAX FOR NON RESIDENTS 2019 |
|
| TAXABLE INCOME, PGK (US$) | TAX RATE |
| Up to 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.
Stamp Duty on Property Leases
Property leases are subject to stamp duty at flat rates, depending on the property lease term or duration. The stamp duty is levied on the total lease.
STAMP DUTY ON PROPERTY LEASES |
|
| Lease Period | Stamp Duty |
| Up to 5 years | 1% |
| 5 years or more | 0.40% |
| Source: Global Property Guide | |
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.