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Introduction to
Papua New Guinea tax planning guide

With its rich biodiversity, vibrant traditional cultures, and emerging opportunities in sectors like mining, education, and development, PNG is a destination unlike any other.



In this guide, we’ll walk you through everything you need to know about relocating to the PNG from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations. 



GTC recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.

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How you are taxed in Papua New Guinea
PNG follows a residence taxation model. If you are resident, you will pay tax worldwide incomes. If you are non-resident, you will pay tax on local incomes only.
Resident
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Local Income
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Foreign Income
Non-Resident
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Local Income
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Foreign Income
Your resident status in Papua New Guinea
You’ll be considered tax resident if you satisfy any of the following criteria:
Physical presence

if you spend more than 182 days in PNG during the tax year period unless you normally reside overseas and have no intention to reside long term in PNG.

Business

Physical presence

Vital interests

Physical presence

Hungarian citizen

if you are a citizen of Hungary unless you have no permanent home in Hungary during the tax year.

Domicile

if you have a PNG domicile unless your permanent abode is overseas.

Spanish nationals

if you are a Spain national who relocated to a tax haven less than five years ago.

Working

Ties

if your ties are located in Mexico and 50% of your income arising in Mexico during the tax year.

Home

EEA citizen

if you are an EEA citizen and you are present in Hungary on more than 182 days during the tax year.

Nationals

Physical presence & work

Family

Citizen

Resident commune

Visa

Income

Physical presence

if you spend more than 182 days in PNG during the tax year period unless you normally reside overseas and have no intention to reside long term in PNG.

Business

Citizen

Resident population

if you are registered with the Italian resident population.

Physical presence

Physical presence

Hungarian citizen

if you are a citizen of Hungary unless you have no permanent home in Hungary during the tax year.

Domicile

if you have a PNG domicile unless your permanent abode is overseas.

Vital interests

Spanish nationals

if you are a Spain national who relocated to a tax haven less than five years ago.

Working

Home

EEA citizen

if you are an EEA citizen and you are present in Hungary on more than 182 days during the tax year.

National

National

Visa

Physical presence & work

Family

Resident commune

Personal income tax rate in Papua New Guinea
Residents are subject to progressive tax rates and the highest rate of tax levied on employment income and self employment income is 42%.
Residents are not subject to taxation on personal income.
Global comparison
World highest
World lowest
Denmark
42
56
%
Papua New Guinea
42
42
%
UAE
42
0
%
Global comparison
World highest
World lowest
Denmark
42
56
%
Papua New Guinea
42
42
%
UAE
42
0
%
Global comparison
World highest
World lowest
Denmark
42
56
%
Papua New Guinea
42
42
%
UAE
42
0
%
Special tax regime in Papua New Guinea

Providing that you operate an SME business and your turnover is less PGK 250,000, your profits will be subject to a flat tax rate of 2%.

* PNG can be a very tax efficient place to live for entreprenuers and as such, Global Tax Consulting recommends seeking personalized tax planning advice to take advantage of the special tax regime.
Tax cap
£200,000 per tax year.
Foreign income
Flat tax rate
2% flat tax rate.
Flat tax charge
2% flat tax rate.
Earned Income
Profits up to 250,000 PGK.
Taxable income
Business profits
Special tax status
Special tax status
Applied for 15 years.
Other personal taxes in Papua New Guinea
Residents may be subject to the following personal taxes:
Asset tax
Tax on property and share sales
Wealth tax
Tax on value of owned assets
Death tax
Tax on assets passed to heirs
Social tax
Tax to contribute to state welfare
* It is recommended that you review your affairs and structure accordingly so that you do not end up creating an unexpected tax charge and paying more tax than necessary.
Double taxation agreements in Papua New Guinea

If you receive incomes overseas while you are living in PNG, you may find the source country, as a starting point, continues to tax the income which may cause double taxation unless you are using special tax regime.

Double taxation agreements can be used to mitigate double taxation and  receive tax free income. As such, the more double taxation agreements a country has, the better, as agreements will ensure you’re not taxed twice and even better, ensure your income is tax free.  

At present, PNG has ten double taxation agreements signed.

Global comparison
World highest
World lowest
UAE
42
140
Papua New Guinea
0
10
Bahamas
42
0
Global comparison
World highest
World lowest
UAE
42
140
Papua New Guinea
0
10
Bahamas
42
0
Tax obligations in Papua New Guinea
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What is the deadline to file tax returns and settle tax liabilities?
The tax year starts on 1 January and ends 31 December.
What is the deadline to file tax returns and settle tax liabilities?
The deadline to file your tax return is 28 February following the end of the tax year. The deadline to settle the tax bill is 30 days from the date the PNG tax authority raises the tax assessment.
Do you need to make advance payments of tax?
No you will not be required to make advance payments of tax.