Income tax on rent, worked example, in Papua New Guinea
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| 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: |
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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 |
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| TAXABLE INCOME, PGK (US$) | ||
| 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 | ||