- Brackets updated
migrated from the production database; research reasoning not recorded.
Top income tax
42.0%
Worldwide system
Corporate tax
30.0%
GST
10.0%
standard rate
Tax residency
183 days
10 tax treaties
Papua New Guinea tax profile
Data year: 2026
- Tax system
- Worldwide Residents are taxed on worldwide income. Non-residents are generally taxed only on Papua New Guinea–source income; passive income such as dividends, interest and royalties paid to non-residents may be subject to withholding when not attributable to a permanent establishment. The Income Tax Act 2025 replaced the 1959 Act from 1 January 2026; personal income tax rates and thresholds were unchanged.
- Top PIT rate
- 42.0%
- Corporate tax rate
- 30.0%
- GST
- 10.0%
- Capital gains tax
- 15.0% From 1 January 2026 the ITA 2025 introduces a capital gains tax on disposals of defined taxable assets (including certain mining and oil and gas interests). The headline rate is 15% on the gain; profits from property acquired for resale or profit-making schemes may still be taxed as ordinary income. Cost base uplift to fair market value at 1 January 2026 is available for qualifying assets.
- Social security (employee)
- Rate not recorded
- Social security (employer)
- Rate not recorded
- Dividend withholding
- 15.0%
- Interest withholding
- 15.0%
- Royalty withholding
- 10.0%
- Treaty count
- 10
Income tax brackets
Corporate
| Bracket min | Bracket max | Rate |
|---|---|---|
| PGK 0 | and above | 30.0% |
Personal income
| Bracket min | Bracket max | Rate |
|---|---|---|
| PGK 0 | PGK 20,000 | 0.0% |
| PGK 20,001 | PGK 33,000 | 30.0% |
| PGK 33,001 | PGK 70,000 | 35.0% |
| PGK 70,001 | PGK 250,000 | 40.0% |
| PGK 250,001 | and above | 42.0% |
Special regimes (1)
| Name | Rate/amount | Duration | Status |
|---|---|---|---|
| Small Business Tax Simplified turnover-based tax for qualifying individual businesses, excluding em... | 2.0% | Duration not recorded | Active |
Tax residency
- Days threshold
- 183 days
- Residency rules
- A person is resident if they commence to reside in Papua New Guinea, if their domicile is in Papua New Guinea (unless their permanent place of abode is outside the country), or if they are present in Papua New Guinea for more than half of the year of income unless the Commissioner General is satisfied their usual place of abode is outside Papua New Guinea or they do not intend to take up residence. The calendar year is generally the tax year.
- Exit tax
- No
- CFC rules
- Yes Controlled foreign company rules attribute qualifying passive (property) income from low-tax foreign entities to Papua New Guinea residents with a 50% or greater direct or indirect interest, where the foreign entity meets low-tax jurisdiction tests.
Filing information
- Fiscal year
- 01-01 – 12-31
- Filing deadline
- March 31
Sources
- IRC — Salary and wages tax (accessed Oct 9, 2026) Resident and non-resident salary withholding brackets from 1 January 2024 (site returned HTTP 403 on direct fetch; rates cross-checked to PwC and ITA 2025)
- PwC Worldwide Tax Summaries — Papua New Guinea (accessed Oct 9, 2026) Headline PIT, CIT, GST, CGT, withholding, residency, filing, treaties, ITA 2025 changes
- PwC PNG — Taxes on personal income (accessed Oct 9, 2026) Resident and non-resident PIT brackets, small business tax
- PwC PNG — Withholding taxes (accessed Oct 9, 2026) Non-resident tax rates from 1 January 2026, treaty table
- PwC PNG — Group taxation (accessed Oct 9, 2026) CFC attribution rules under ITA 2025
Change history
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.