Income tax in Papua New Guinea
Taxation Researcher | April 06, 2019
Residents are taxed on their worldwide income. Married couples are taxed separately.
Income is classified according to the following categories: (1) employment income, (2) business income, (3) rents, (4) interests, and (5) dividends.
|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 is taxed at the progressive income tax rates. Income-generating expenses are deductible when calculating the taxable income.
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.
There are no property taxes in Papua New Guinea.
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.